NNN in QSR - Percentage Rent Lease vs 5 yearly increases

[Kiran R.]

Hello I am just getting started in NNN investment, and mainly looking at national brand tenants in Quick Service Restaurants(QSR). Comparing two deals - with almost same price point
#1. no rent increases but Percentage rent lease - There is a base rent ( ~65% of NOI) and the rest is percentage of their gross sales in last 12 months
#2. 10% rent increase every 5 years

As a newbie option #2 seems preferable /safer to me, and #1 may be slightly riskier. Would love to hear the opinion of experts.

And also if you have any recommendations for brokers and lenders specializing in NNN please let me know.  

Thank you 🙏