Signing a lease is one of the biggest decisions when opening a Game TV franchise. A bad lease can hurt your profits, while a good one can set you up for long-term success. Here’s what you need to know before signing.
How Long Should the Lease Be?
- Most entertainment venues sign leases for 5 to 10 years.
- Shorter leases (e.g., 3 years) might seem safer, but landlords often charge higher rent.
- Longer leases (10+ years) can lock in a good rate but limit flexibility if the business needs to relocate or expand.
- The ideal lease is usually 5+5 years (5 years with an option to renew for another 5).
What Are the Expected Rental Costs?
- Rent depends on the size, location, and city.
- A 400m² venue in a prime location (shopping mall, entertainment district) could cost €10k–€20k per month.
- In smaller cities or less busy areas, it might be €5k–€10k per month.
- Some landlords ask for percentage rent (a share of your revenue) instead of a fixed monthly amount. Always calculate if this makes sense for you.
What Extra Costs Should I Expect?
Besides rent, you may need to pay for:
✅ Security Deposit – Usually 3 to 6 months’ rent upfront.
✅ Maintenance Fees – If in a mall or complex, there could be monthly service charges for security, cleaning, and upkeep.
✅ Property Taxes – Some landlords pass these costs to tenants, so check your lease carefully.
✅ Utilities – Electricity, water, and internet will be separate costs and can be high for an entertainment venue with tech-heavy attractions.
✅ Security Deposit – Usually 3 to 6 months’ rent upfront.
✅ Maintenance Fees – If in a mall or complex, there could be monthly service charges for security, cleaning, and upkeep.
✅ Property Taxes – Some landlords pass these costs to tenants, so check your lease carefully.
✅ Utilities – Electricity, water, and internet will be separate costs and can be high for an entertainment venue with tech-heavy attractions.
Can I Negotiate the Lease?
Yes! Many landlords are open to negotiation, especially if your business will attract foot traffic to their property. Try negotiating:
✅ Lower base rent – Offer a slightly lower amount but commit to a longer lease.
✅ Rent-Free Period – Ask for 3-6 months free while you set up your venue.
✅ Cap on Rent Increases – Some landlords increase rent yearly. Try to limit this to a small percentage (e.g., 2-3% per year).
✅ Improvement Allowance – If the venue needs changes (like new walls, floors, or wiring), ask if the landlord will cover some renovation costs.
✅ Lower base rent – Offer a slightly lower amount but commit to a longer lease.
✅ Rent-Free Period – Ask for 3-6 months free while you set up your venue.
✅ Cap on Rent Increases – Some landlords increase rent yearly. Try to limit this to a small percentage (e.g., 2-3% per year).
✅ Improvement Allowance – If the venue needs changes (like new walls, floors, or wiring), ask if the landlord will cover some renovation costs.
What Happens If I Want to Leave the Lease Early?
Not every location works out. You should have a way to exit the lease without major financial loss. Look for:
✅ Subletting Rights – Can you rent the space to someone else if needed?
✅ Break Clause – Some leases allow you to end the contract early (e.g., after 3 years) with a penalty.
✅ Franchise-Specific Terms – Game TV might have specific recommendations on how to protect yourself in case the business needs to move or expand.
✅ Subletting Rights – Can you rent the space to someone else if needed?
✅ Break Clause – Some leases allow you to end the contract early (e.g., after 3 years) with a penalty.
✅ Franchise-Specific Terms – Game TV might have specific recommendations on how to protect yourself in case the business needs to move or expand.
Your Next Step – Exercise
Find three potential venues in your city and research their lease terms.
✅ What is the rent per month?
✅ How long is the lease?
✅ Are there any extra costs (maintenance, taxes, etc.)?
✅ Can you negotiate better terms?
Write down the details and compare them. The right lease can make or break your Game TV franchise!
Find three potential venues in your city and research their lease terms.
✅ What is the rent per month?
✅ How long is the lease?
✅ Are there any extra costs (maintenance, taxes, etc.)?
✅ Can you negotiate better terms?
Write down the details and compare them. The right lease can make or break your Game TV franchise!
Grow your business with us
Join us in revolutionizing the entertainment industry! We’ll help you find the ideal location, set up cutting-edge gaming equipment, and provide continuous tech support and updates. Let’s build the future together!
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