Putting a franchise in an owned commercial property
Hi guys. So me and my family own a commercial property in south Vancouver. Fully leased at the moment it produces about 100k ish a year in ren currently with one tenants rent not up to par with market as lease was sighed 5 years ago. So income can go up a bit.

My thought process is,the building is worth 4-4.5 million. And Is paid off debt free.  I have been exploring franchise opportunities to get more cash flow then just re leasing it out. As an owner of the property not having to pay rent especially in Vancouver, would this not be a win win situation. Produce more cash flow then leverage the property to buy more real estate or maybe open a new location if this one does well etc
[{"id": "iret4v9", "text": "When you mean franchise, you mean something like a McDonald\u2019s or a Burger King? \n\nRight now, you\u2019re a landlord. Once you become a franchisee, you enter the restaurant business. It\u2019s a completely different game. Do you really want to be in that industry with brutal hours, short staffed all for brutally low margins? \n\nAssuming you want to go for a McDs, they have to first determine if your property is a good fit for their brand, doesn\u2019t encroach on other franchisees and then qualify you as a potential franchise owner. It\u2019s a big hassle you need to be fully committed to. Owning a piece of land isn\u2019t the determine factor in being given a franchise (it could help though).", "replies": [{"id": "iretkpm", "text": "It\u2019s not big enough for a McDonald\u2019s. Only about 1100 sq feet. Price per square ft for rent in Vancouver is 50-60. Not having as much overhead as someone leasing from a landlord. Profits would be higher would they not? I work a 9-5 right now that I want to leave. It\u2019s not as brutal as waking up at 4:45am everyday and doing labour intensive work I\u2019L tell ya that. Was looking a an upcoming pizza franchise concept. They gross about 650-850K per year. Let\u2019s say after expenses I\u2019ve heard 15-20 percent profit. Not having to pay rent is a massive benifit", "replies": [{"id": "irfhkq6", "text": "Price per square foot in Vancouver can vary a lot rather than just 50-60 net... I'd be very interested to know where in South Van you're thinking you should 50-60 net. I can only think of new strata projects that would even hope to achieve that rent in South Van. That being said I'm local if you want to pick my brain feel free to PM me.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "irfst29", "text": "This is in the wrong thread, you want advise on whether to start a franchise business, not real estate.\n\nThink of it this way: if you start a franchise, you have to pay rent to someone. The fact that you pay it to yourself makes zero difference.\n\nAnd, from the opposite perspective, if you are a landlord, you are in the business of renting space. It makes no difference if you are renting it to yourself or another tenant.\n\nSo, here\u2019s my question: would you rent your space to a first time pizza franchise operator who has never run a restaurant before? If that is your best possible tenant, then you have bigger real estate problems than whether you should run a franchise.", "replies": [], "depth": 1}, {"id": "irgn8hq", "text": "Are you asking about becoming a franchisee and running a chain restaurant, or marketing available space to franchises and franchisees?", "replies": [], "depth": 1}]