Occupancy Costs
Total real estate expenses including rent, property taxes, insurance, and common area maintenance (CAM) charges. Typically 6-10% of sales in QSR.
Related Terms
Fixed Costs
Expenses that remain constant regardless of sales volume, including rent, insurance, management salaries, and equipment depreciation.
Triple Net Lease
A lease structure where the tenant pays base rent plus property taxes, insurance, and maintenance costs (the three 'nets'), common in restaurant real estate.
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