Updated almost 3 years ago on . Most recent reply
#5 Commercial Real Estate Investing Contributor
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- Fairfax, VA
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Is Rita's Italian ICE a good tenant?
#5 Commercial Real Estate Investing Contributor
- Investor
- Fairfax, VA
Looking for anyone who has any experience with this franchise as a tenant. Seems a bit seasonal to me but if the annual numbers are good on an average store then it might be worth it.
Most Popular Reply
I am a former franchise owner (2 stores in NC) and I can tell you they are seasonal and from our experience opening in in NC (Franchise started in PA and is better supported there) there were major challenges. We had them for 2 years and it almost broke us, they just aren't received as well outside on PA.
If you are talking with an existing owner who wants another or a new location the risk is much less than a new franchisee. The franchise itself is awesome, stores are clean and they are required to keep them and the surrounding area clean. The threat will be if they cashflow enough to handle the debt. Average store gross is $275k as a whole, we were in beach locations and only did slightly more than that, which killed us.
plus side is they need very little space (800sq/ft to operate), so you may be able to split a property and have more than one Tennant to offset risk.
Good luck