Franchise Real Estate
Sale-Leaseback for Franchise Property — Free Capital, Keep Operating
If you own the underlying real estate at one or more of your franchise locations, a sale-leaseback transaction can free that capital for expansion, partial exit, or shareholder buyout without disrupting operations. You sell the property to an investor and lease it back as the operating tenant. Summitly structures these transactions for franchise operators across Canada.
Coldwell Banker Summit Realty, Brokerage (905) 553-8500
What you get
- Free $1M to $20M+ of trapped capital from real estate you already own
- Keep operating the franchise business as the tenant
- Tax-efficient structure for owners ready to take chips off the table
- Institutional buyer relationships across Canadian REITs and private equity
What Summitly does — and doesn’t
Summitly's franchise practice is run by Coldwell Banker Summit Realty, a real estate brokerage specialising in franchise locations across Canada. We help you secure, hold, and exit the real estate underneath your franchise. We are not a franchise consultant or recruiter.
We handle
- Site search and site approval coordination for your franchise locations
- Commercial lease review, negotiation, and renewal
- Resale brokerage when it’s time to sell — confidential marketing, buyer prequalification, lease assignment
- Coordination with the landlord, lender, lawyer, and franchisor real estate team
We don’t handle
- Franchise applications, brand approval, or franchisor selection criteria
- Training, supply chain, operations, or marketing programs — those stay with the franchisor
- Picking a brand for you — that’s a business decision we’ll respect, not influence
Why a specialist matters for sale-leaseback
Sale-leaseback transactions look simple on the surface — sell, then lease — but the lease you sign as the tenant is the contract that defines the next 15 to 20 years of your franchise operation. The wrong lease structure on a sale-leaseback can cost more than the capital you freed. Summitly structures both sides of the deal so the lease protects your operating business while the sale terms maximize the price.
How a Summitly sale-leaseback works
Property valuation
We assess the real estate at investor-grade pricing using cap rate analysis and recent comparable transactions. Typical proceeds: 8 to 15 times annual lease rent.Lease structuring
We design the lease terms — initial 15 to 20 year term, renewal options, rent escalations, tenant responsibilities, exclusivity — to protect your operating business.Buyer marketing
We market to institutional buyers, REITs, and private investors who specialize in net-lease franchise property. Confidential process with NDA.Negotiation and close
We negotiate the sale price and lease terms in parallel so neither side gets compromised. Close in 60 to 120 days from accepted offer.
Who a franchise sale-leaseback is for
Franchise operators who own the land or building at one or more units. Multi-unit operators looking to fund expansion without taking on more debt. Single-unit franchisees nearing retirement who want to monetize the real estate while staying on as tenant for a few more years. Partners buying each other out. If you own franchise real estate and want to free the capital, this is for you.
Your franchise real estate team
Coldwell Banker Summit Realty — Franchise Real Estate Practice
Coldwell Banker franchise · Licensed in Ontario
Coldwell Banker Summit Realty, Brokerage runs a dedicated franchise real estate practice serving operators across Canada. We handle the operator-side real estate work on franchise deals — securing sites at the start, reviewing and negotiating commercial leases, and brokering the exit when it is time to sell. Backed by the Coldwell Banker brand, an independently owned and operated franchise with deep commercial and residential reach, our team reads a lease the way the operator does, scopes a site the way the franchisor does, and structures the exit the way the buyer will underwrite it.
- Operator-side franchise real estate across food, retail, hospitality, fitness, and service categories
- Site selection, lease review, and lease negotiation aligned to franchisor criteria
- Resale brokerage, location takeovers, new-build site work, and sale-leaseback structuring
- Backed by Coldwell Banker — an established global real estate brand and franchise network
Coldwell Banker Summit Realty, Brokerage (905) 553-8500
Questions
Sale-Leaseback for Franchise Property: common questions
Quick, honest answers to what franchise buyers and sellers ask us most.
Typical proceeds range from $1 million to $20 million per property, depending on the underlying value of the real estate. The valuation is based on the cap rate the investor will accept (typically 5 to 7 percent for Canadian net-lease franchise property) and the rent the property can sustain.
Sale-leaseback monetizes the real estate but keeps you operating the business. Selling the business monetizes everything but you stop operating. The two are sometimes combined — you sell the business AND the property to different buyers — but the structure is more complex.
It depends on your specific situation. The gain on the property sale is typically a capital gain (50 percent inclusion in Canada). The lease payments become a deductible operating expense. Always confirm with your tax advisor before structuring.
Net-lease REITs (Choice Properties, Slate Grocery, others), private equity real estate funds, family office investors, and high net worth individuals seeking yield. The buyer pool is institutional and the diligence process is rigorous.
Next step
Own franchise property? Free the capital.
Book a free call. We will assess what your property is worth in a sale-leaseback and what lease terms would protect your operating business.
