The fast-food industry is one of the most booming industries for years now despite the pandemic that has gripped the world since last year. One primary reason for this industry’s success is because food is a basic need of every human.
According to statistics, more than 85 million Americans buy fast foods daily, with the industry netting approximately $281.68 billion in 2021. Therefore, this constant growth of the fast-food industry means there are great investment opportunities in quick-service restaurants like Wendy’s, Starbucks, and McDonald’s.
Most fast food restaurants for sale feature triple net leases due to their profitability. Quick service restaurants (QSRs) or fast food will always thrive, making their properties hot cakes in the triple net investment property market.
Thus, fast food franchise triple net properties like Starbucks, Wendy’s, and McDonald’s offer long-term and stable net lease investment with creditworthy, reliable tenants, effortless monthly income, zero or few maintenance responsibilities, and periodic lease increase for ten or 15 years.
The following tips will help you buy the best fast food triple net properties. But before we proceed with the pointers, let’s quickly look at quick-service restaurants (QSRs) statistics and why investing in one is the best investment move any investor should make.
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Quick-Service Restaurants (QSRs) Statistics
Presently, there are more than 200,000 QSRs in the United States. A report from Brand Finance rankings shows that the top 25 fast-food companies’ 2021 revenue alone is $153.9 billion. Presently, Starbucks, Chick-fil-A, KFC, and McDonald’s are the leading brands in 2021.
According to Zion Market Research, drive-thru restaurants will witness more marketing growth due to people’s increasingly hectic lifestyles, leading to more Americans resorting to fast food to save time.
Furthermore, Americans are beginning to have a growing fondness for inexpensive food with little or no wait time, leading to the sustained growth of fast food companies over time. Several QSR brands rely on NNN or triple net lease investors to have new locations, which is beneficial for both the fast-food chains’ investment and the property owners.
Ways to Pick the Best NNN Fast Food Properties
Triple net fast-food investments are a perfect way to build equity with a low-risk income stream. An NNN lease enables an investor to earn high returns without bearing the responsibility of being a landlord.
Therefore, fast food franchise triple net properties have become popular and viable investment options for savvy investors. However, searching for “restaurants for sale near me” isn’t enough for investors looking for the best triple net properties.
You’ll need to carefully evaluate certain factors that will influence the investments revenue generation profit outcome.
The following tips will help you choose a great fast food venture as a triple net investment option.
Identify your Market
Before investing in a Drive-Thru for lease near me, ensure you make careful market research to identify what suits your preference. It’s crucial to understand the NNN market and its trends affecting property valuation and pricing.
More so, you’ll need to know the possible product price lines and current market value to examine and decide what property option will suit you best. Also, evaluate the viability or prospects of the service you want to offer in your preferred location. That way, you won’t fall head into poor profit returns and daunting losses.
Do Your Research
Another tip you must follow is to conduct adequate research to understand the contract terms and the triple net lease before committing your money to the investment. You’ll also need to run a background check on the client.
It also consists of a background check on the client involved in the deal. That way, you’ll have an overview of what triple net investment entails and whether it’ll be an excellent investment or not.
Location Is Key
No investor wants to buy a property at a disadvantaged location. That’s why you need to do your due diligence and identify the market trend. In fast-food franchise triple net properties, location plays a crucial role in defining the investment’s lucrative nature and long-term gain potential.
Look out for areas with many working-class individuals, a stable economy, and a high population. These areas are best for NNN fast food restaurants. Once the location can pay for the service, it’ll become a deciding factor for establishing a business entity.
What to Look Out for When Buying a Triple Net Fast Food Property
Savvy investors prefer triple net because it allows you to build a portfolio, allows the buyer to focus on other things, and enjoy retirement life without worry and stress.
To maximize these benefits, it’d be best to look for creditworthy companies that want total property control for their brand image with little or zero landlord involvement.
Furthermore, ensure the investment provides:
- Rental increment in the lease term compensate for new inflation price
- Ability to build equity through the triple net property over the lease term
- Creditworthy and low-risk reliability tenant reporting and financials
- Investment diversification and wealth preservation
- Corporate-backed long-term lease with extension options
- Stable monthly income with zero or little landlord responsibilities
Why NNN Fast Food Investment is Best for You
Many fast-food restaurants are often triple net leases due to the benefits associated with this lease option. NNN leases are low-risks, and its regular income generation advantage offers expense-free ownership with a long-term lease guarantee of about ten to 15 years.
Investors that wish to build equity over time should opt for fast food franchise triple net properties.
The fast-food industry isn’t affected and will never be affected by any economic downturn. It keeps growing; thus, investors in the fast-food real estate are enjoying lucrative and stable income with various property choices like Wendy’s, McDonald’s, and Starbucks and lease options.
Suppose you’re interested in starting as a savvy triple net investor; contact Buy NNN Properties to see available fast food properties for sale. You’ll need to work with an experienced broker and buyer’s agent with expert knowledge of the triple net market and popular in the marketplace.