Renegotiating Lease Agreements to Improve National Restaurant Profitability
Challenge
Following a period of over-expansion and poor franchisee site selection, a national restaurant operator and franchisor of fast-casual pizza restaurants began experiencing a decline in profitability. The operating team determined decisive measures would be necessary to manage the franchisee portfolio, including lease restructuring and improved operational efficiencies.As a result of the lease negotiations, the company realized an immediate 15% reduction in existing payment obligations.
How we helped
Riveron was brought in to assess and renegotiate the lease agreements and terms across the portfolio’s 100+ sites to improve store profitability. Using local market intelligence and applying a landlord’s perspective to the discussion, each negotiation was tailored to drive the most positive outcome for the store based on a thorough understanding of the market rates and concessions, re-leasing timeframe, and the counterparty’s restructuring limitations and financing constraints. We successfully renegotiated above-market lease agreements and early terminations of unprofitable leases, as well as managed litigation for shuttered locations, leveraging the uncertainty of local legal processes and tenant collectability to minimize settlement amounts.
Results
As a result of the lease negotiations conducted by Riveron, the company realized an immediate 15% reduction in existing payment obligations. In addition to the immediate savings, the stores also benefitted from long-term stability through negotiated lease extension options at favorable rates and updated landlord terms, including tenant improvement allowances and sales volume rent adjustments.
Ready to connect?
We partner with our clients and their stakeholders to elevate performance and expand possibilities across the transaction and business lifecycle. Contact us to learn more.
Ready to explore related solutions?
More Insights
Implementing an AI-Enabled Intelligent Manufacturing Solution for a Tier-1 Automotive Supplier
An automotive supplier worked with Riveron IMS experts to create a predictive solution that connected process data using artificial intelligence and increased productivity by approximately 100 parts per day.
Transforming Retail Finance with OneStream During $9B Catalyst Brands Formation
As JCPenney evolved into Catalyst Brands, a $9B+ retail platform spanning six iconic brands, finance operations were unified on OneStream to enable automated consolidation, enhanced reporting visibility, and a scalable foundation for continued transformation.
Elevating a Cryptocurrency Company’s Finance Function by Completing a $372M De-SPAC
Riveron guided a cryptocurrency financial services company through a $372M de-SPAC IPO, delivering SEC-compliant reporting, complex valuations, and audit readiness—transforming a never-audited business into a public company in nine months.
Delivering AI-Powered Contract Intelligence
A large-scale infrastructure construction company behind some of the country’s most complex infrastructure projects like data centers, airports, and more, is no stranger to high-stakes contracts with razor-thin margins for error.
4 NetSuite Add-Ons Help Businesses Connect to Salesforce, Manage Bulk Orders, Automate Reclassifications, or Handle Approvals via Email
Organizations using NetSuite can extend the value of their ERP investment through solutions that streamline integrations, automate finance and operational processes, and improve scalability.
