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Before-You-Sign Location Checklist

12 checks across three phases — at your desk, at the site, and at the lease table. Print it, tick it off, and take the numbers in the final section into negotiation.

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Phase 1 · Before you visit

At your desk — before the site trip

Run the rent-to-revenue testCritical

Monthly rent ÷ 0.10 = required monthly revenue. Divide by avg ticket ÷ 26 trading days = required daily transactions. Know this number before you visit.

Calculate your survival floor

Monthly rent ÷ gross margin per customer = daily transactions needed to cover rent alone. This is your downside — not your target.

Check suburb demographics

Median household income above $90k, age skew 25–45, high full-time employment. ABS 2021 Census (SA2 level) via abs.gov.au — or run a Locatalyze report.

Map competitors within 200m

0–1: verify demand exists first. 2–3: healthy market. 4–5: requires clear positioning. 6+: avoid unless foot traffic is exceptional (150+/hr).

Phase 2 · At the site

Physical inspection — bring this with you

7am foot-traffic testCritical

Arrive at 7am on a Tuesday. Count pedestrians for exactly 10 minutes, multiply by 6. Under 30/hr: very difficult. 30–60/hr: viable if positioned well. 60–120/hr: solid. 120+/hr: strong — focus on the lease.

Physical site inspection

Corner visibility (two-direction exposure). Existing kitchen infrastructure (saves $30–80k). Outdoor seating potential — north or east facing. On-street parking or transport within 200m. Wide footpath for queue formation.

Neighbouring business health check

Are they thriving or struggling? Foot-traffic anchors nearby (gym, train station, supermarket, office complex)? Turnover of previous tenants at this specific address?

Second visit — peak trading hours

Café: Saturday 8–10am. Restaurant: Friday 7:30–9pm. Are nearby operators busy? Are people looking for somewhere to eat? 15 minutes of observation beats any dataset.

Phase 3 · Before you sign

The lease table — do not skip these

Negotiate the three must-havesCritical

(1) CPI-capped rent reviews — prevents uncapped landlord increases that push you through the 12% threshold. (2) 12-month break clause — your exit if trading assumptions prove wrong. (3) Permitted use broad enough to cover your full concept including any future pivots.

Get a commercial tenancy solicitor

$500–1,500 to review. Non-negotiable. Check: rent review mechanism, make-good obligation, personal guarantee scope, option-to-renew terms, assignment rights (can you sell the business with the lease?).

Know your CAUTION and NO rent numbers

CAUTION threshold: revenue × 0.13. NO threshold: revenue × 0.15. These are your walkaway numbers in negotiation. Fill them in for your location in the box below.

Check council development applications

Search the local council's DA register for the address and surrounding 200m. An approved development that removes car parks, changes street access, or adds a major competitor can change your model before you open.

Your lease-table numbers

Fill these in for your specific location. Take them into negotiation — your CAUTION and NO numbers are your walkaway points.

GO threshold

Enter rent →

CAUTION threshold

Enter rent →

NO threshold

Enter rent →

What a strong lease looks like

5-year term

Long enough to build a customer base; worth the commitment if the numbers work.

CPI-capped rent reviews

Prevents landlord from pushing you through the 12% threshold at renewal. The rent review clause is the single clause most likely to kill a profitable business.

12-month break clause

Your exit if trading assumptions prove wrong. Worth paying a small premium for.

No uncapped market reviews

Market reviews can double your rent. If the landlord insists on them, require a cap (e.g. no more than 10% in any review period).

Permitted use: broad and specific

Must cover your full concept including any future food/drink pivots. Narrow permitted use can prevent you from serving alcohol, changing the menu format, or subletting.

Make-good: limited and defined

Restoration to original condition can cost $20,000–$80,000 at end of lease. Negotiate "fair wear and tear" exclusion and a clear definition of "original condition".

This checklist tells you what to look for. A Locatalyze report does it for you.

Get a GO / CAUTION / NO verdict in ~90 seconds

Competitor map, rent-to-revenue check, demographic score, break-even calc and a 3-year financial model — for any Australian address. First report free, no credit card.

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