Home – New Forums Starting your journey Another cafe hopeful Reply To: Another cafe hopeful

  • Total posts: 226

5 + 5 means it is a 5 year lease with an option for an additional 5 years (generally you will need to exercise the option within a few months of the end of the initial 5 year lease). You can always pack up and walk away at the end of the 5 year period, but it provides some certainty that you will have the lease for at least X period of time if you exercise the option.

3 x 3 is similar, except you have an option for an additional 3 years by the end of year 3 and then year 6.

For my clients we generally attempt to negotiate as many options as possible to provide certainty that the goodwill built up and expense being put into the place is worthwhile.