What this is: A reading list for brands, property owners, investors and lenders: how FICO and FOCO work, how retail leases are priced, what the market data says and which rules apply.What happens next: Pick a topic, or start with the four models below. Every item opens on the publisher's own site.
Learn the expansion models
Chosen by the FicoFoco desk from regulators, industry bodies, rating agencies, law firms and the business press. We link and summarise; we don't reproduce, and nothing here is paid placement.
The four models, in one line each
- FICOFranchise-invested, company-operated
- An investor funds the outlet; the brand runs it day to day.
- FOCOFranchise-owned, company-operated
- The franchisee owns the outlet; the brand operates it.
- FOFOFranchise-owned, franchise-operated
- The franchisee owns and runs the outlet under the brand's standards.
- COCOCompany-owned, company-operated
- The brand funds and runs the outlet itself.
Commercial leasing
- Blog
Retail Leasing Models: Fixed Rent vs Revenue Sharing Explained
Orion Malls
A mall operator explains fixed per-sq-ft rent, revenue-share leases and the hybrid in which a minimum guarantee is paired with a share of tenant sales.
Why read it: The MG + revenue-share mechanics that landlords and brands negotiate on every outlet.
Read on orionmalls.com (opens in a new tab) - News24 Apr 2023
Shopping mall operators' revenue may rise 7-9% this fiscal: Crisil report
Business Standard
A Crisil study of 28 malls in 17 cities found that about 85% of operator income comes from fixed minimum rent, with the rest linked to tenant sales.
Why read it: A hard data point on the typical split between fixed and sales-linked rent.
Read on business-standard.com (opens in a new tab)
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