Next to the careful selection of a Distributor, a good lease is probably one of the next most important steps toward your coin laundry purchase.
It is often stated, that the life of a coin laundry business may be only as long as the lease. Recognizing this, can lead to the realization that the store lease is probably one of the most important documents the owner will sign. And the terms of the lease are one very important factor in determining the longevity of the business.

The object of a successful lease negotiation is to get the best lease agreement possible. To this end, obtaining legal counsel is highly recommended before signing a lease. Lease attorneys are specialists and are experienced in the art of lease negotiations and avoiding many possible pitfalls. As the end result of these negotiations, and subsequent lease have a direct impact on the profitability of the business it is important that the owner become and remain involved in the lease negotiations.

Here are some key negotiating tools to become familiar with:

1. Start low. Do not immediately name the target price. Leave room to make concessions.
2. Don’t give in too easily. While there will be give and take, and you will need to make concessions, don’t concede them easily.
3. Be patient, and take your time. This is an important decision, and must be made with careful deliberation.
4. Try getting a longer lease in trade when finding it necessary to make a concession.
5. Try to find out what the other sides “must have” price is. This may give you a bit of additional leverage. Remember, knowledge is power.
6. Be friendly. Being confrontational often is counterproductive to obtaining the best deal.
7. Keep your distributor involved, as they may have knowledge vital to your lease negotiations.

Lease term
The term of the lease is the period of time that the lease will remain in effect. The objective for the coin laundry owner should always to get as long an initial lease term as possible, at the least, 10 years minimum.
Due to today’s economic climate, long term financing is the norm rather than the exception. In many cases financing of 7 years or more are normal for new equipment purchases or a total store purchase.

Protect your future needs
Consider requesting as a part of the lease agreement, an option to rent more space should you need it later.

Other Important Considerations
Clauses you should try to have in your lease.

1. Renewal option. Try to obtain a renewal option now from a position of strength rather than at the end of your lease term when you are left with fewer options.
2. Cancellation option. This option protects the owner should you need to vacate the premises before the lease expires.
3. Option to buy. This can obviously be a very profitable option for you should you choose to exercise it.

** Information includes materials obtained from the Coin Laundry Association and other sources.