Develop policy manual with systems, procedures, forms and checklists
Notify tenant of Confidentiality Agreement and strict adherence
Evaluate rent reduction for base rent only and/or NNN charges
Is reduction temporary and recaptured or partially forgiven?
Evaluate Rent-to-Sales ratio and Occupancy-Costs-to-Sales ratio (benchmarks)
Obtain company financials and store level EBITDA from corporate tenants
Obtain personal and guarantors’ financials with store level P&L from local tenants
Obtain State Sales Tax filings and Federal Tax Returns from local tenant
Obtain business plan itemizing recovery and improvement in sales
Tenant held in monetary default during restructure negotiations
Single or multiple locations being considered for restructure?
Address lease clauses such as: option to renew, first right of refusal, co-tenancy,
kick-out, restrictions, exclusives, recaptures, audit rights, etc
What are franchisor and/or franchisee agreement ramifications?
What approvals needed from franchisor and franchisee?
Is franchisor reducing franchise and advertising fees?
What are mortgagor and/or mortgagee note ramifications?
What approvals needed from mortgagor and mortgagee?
What are JVs and Partnership ramifications and approvals needed?
Obtain tenant merchandise inventory, advertising and remodeling plans
Check out tenant references from landlords, vendors, contractors, etc
Will tenant survive with concessions and restructure? (Lifeline to Titanic?)
All parties to negotiate promptly and in good faith for satisfactory resolution!
