Negotiate lease

Franchise

Nationwide, New Zealand

How a skin-clinic franchise rolled out 20 sites on market-leading lease terms

The result

20

new Caci clinics sourced and leased across New Zealand in six months, each on market-leading commercial terms.

Lower entry costs, rent-free and fit-out-free startup periods, and personal guarantees cut or removed, so every franchisee opened on solid footing.

At a glance

Client

Caci — NZ skin health & appearance franchise (60+ clinics)

Sector

Franchise (health & beauty)

Location

20 sites across New Zealand

Service

Lease negotiation + premises sourcing (rollout)

The brief

Source and lease 20 new clinics on terms that make it affordable for franchisees to open.

The situation

A growing franchise, 20 clinics to open, one landlord negotiation at a time

Caci has been building skin confidence since 1994, growing from a single Newmarket clinic to more than 60 franchised sites. The next phase was ambitious: roll out 20 new clinics across New Zealand, and make it more affordable for franchisees to open one.

Leasing premises is a franchisee's second-biggest business cost. Caci was concerned it was leaving too much money on the table across those deals, so it brought in Proactive Property Group to source the sites and negotiate every lease.

What was at stake

In a rollout, a weak lease isn't one bad deal. It's 20

Every clinic is a separate negotiation with a different landlord and agent, people who do these deals every week. On the other side sits a franchisee who has never negotiated a commercial lease.

Get the terms wrong on one site, and one franchisee overpays for years. Get them wrong across the rollout, and the whole model gets more expensive and riskier to join.

High entry costs, personal guarantees and inflexible exits are exactly what put people off signing up.

For a franchisor, the lease terms underneath each clinic decide how affordable and how safe the opportunity looks to the next franchisee.

What we did

Negotiate every clinic to the same high standard

Caci brought in Marcus from Proactive Property Group, a tenant-side adviser who negotiates leases regularly and has sat on both sides of the table, as landlord and tenant. Working alongside the Caci franchise team, the job was to make each deal fit the business, not the landlord.

01

Set one standard brief

Worked with the Caci franchise team to turn preferred locations, size and operating needs into a clear premises brief, so every site search started from the same benchmark.

02

Source and shortlist sites

Scoured the market in each target area, including off-market sites, then qualified and shortlisted only the premises that fit the brief.

03

Negotiate every lease to a template

Led negotiations with agents and landlords to a consistent set of tenant-favourable terms: lower entry costs, ongoing savings and a clean exit at the end of the term.

04

Protect the franchisee

Cut or removed personal guarantees, won rent-free and fit-out-free startup periods, and blocked competitor co-location, so each franchisee opened with less risk and more room to breathe.

The result

20 clinics leased in six months, on terms franchisees couldn't get alone

Across the first half of 2021, all 20 clinics were sourced and secured by lease agreement, each carrying a consistent set of wins for the tenant:

20 clinics leased in six months

Every site sourced and secured across New Zealand in the first half of 2021.

Market-leading commercial terms

Deals that beat neighbouring properties in the same locations.

Personal guarantees cut or removed

Less personal risk on each franchisee's shoulders.

Rent-free and fit-out-free startup periods

Breathing room while each clinic got up and running.

Fit-out concessions from landlords

Contributions that lowered the cost of outfitting a clinic.

Flexibility and protection built in

Milestone and opt-out clauses, competitor exclusions, and signage rights.

The value wasn't any single lease. It was 20 of them, negotiated to the same standard, so every franchisee opened on terms they'd have struggled to win on their own. And the relationship kept going. Marcus went on to help with clinic fit-out design and building consent, guided franchisees on landlord maintenance obligations, and managed a clinic defit from start to finish.

If you're rolling out sites

A franchise rollout lives or dies on the leases underneath it. Every site is a fresh negotiation with a landlord who does this for a living, and a franchisee who doesn't. Getting the same strong terms at every location, before anyone signs, is what keeps the model affordable as it grows.

About the adviser

Marcus Bosch

Marcus has spent 20 years acting for tenants across New Zealand and the East Coast of Australia — finding premises, negotiating leases and managing property costs across the full lease lifecycle. Having sat on both sides of the table as landlord and tenant, he negotiates commercial terms most tenants only sign once or twice in the life of their business.

More about Marcus and Proactive Property Group →

More proof

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This was a franchise rollout. Lease negotiation is one stage of our commercial lease advisory Services.

Rolling out franchise sites?

Every clinic, store or site is another lease, and another chance to overpay or over-commit. Get the same strong terms at every location. Tell me about your rollout and I'll show you where the room to move is.