Written for the person who owns the leases
Franchise platform companies
Several brands, several hundred sites, one real-estate function, and reconciliation statements arriving in every month of the spring.
The portfolio below is an illustration, not an average: change the sites, the footprint and the rate on the calculator and the arithmetic follows your own estate.
The arithmetic on a portfolio this size
120 sites at 2,600 square feet and $9.50 per square foot is $2,964,000.00 of operating expenses billed in a year. At the $59,280.00 to $148,200.00 band typically recoverable on review, that is what a first pass puts at issue, before the years still open multiply it.
Pro-rata denominator definition
Share recomputed from the lease-defined denominator; occupied versus leasable; stale after remeasurement or expansion
Management fee base and percentage
Fee recomputed on the lease base; gross-rent base where the lease says CAM inflates the fee four to five times
Pool scope change year over year
Proportional to the scope change
What your lease forms have in common
A platform inherits the lease forms of each brand it bought and the landlords that came with them. The pattern worth finding is not inside one brand but across them: the same property manager billing three of your banners, with the same method, in the same way.
Your portfolio will split three ways
Some of your leases will let us act for you and take a share of what comes back, some bar it and are priced flat, and some bar a representative altogether and run in self-service with your team sending what we prepare. You get the split, site by site, with the clause reason for each, before anything is signed.
Start with five representative sites
Pick five leases that look like the rest of the estate, send the lease and the last reconciliation for each, and you get the findings, the open years and the route per site. It is the fastest way to know whether the same error is on all of them.