Freshii offer to lease-troubled franchisees in other chains

Inside Franchise Business: lease agreements in focus with Freshii's franchise offerHealthy fast food chain Freshii wants franchisees undergoing lease agreement breakdowns in other food chains to consider opportunities in its own franchise network and and has sent an open letter to franchisees.

It follows on from SumoSalad’s tactic to bring landlords into line and negotiate reasonable lease agreements.

Freshii Australia’s managing director Robbie Damjanovic told Inside Franchise Business this is not a bid to pull franchisees out of their existing chain but to provide an alternative if lease agreements have reached a critical state.

Franchisees can continue to operate their existing business while a Freshii franchisee, he said.

Damjanovic is confident in his negotiations with landlords.

“We’ve negotiated some very good leases. We get leases upfront and then if we can’t find a franchisee, run stores as corporate, then open them up for sale as a trading business,” Damjanovic said. “I’ve negotiated leases in centres from $220,000 down to $120,000.”

The letter to franchisees states: “We are willing to waive the licence fee for five years and assist in financing if required. This offer is also available to current franchisees in existing locations or those who want to start in a new Freshii location.”