Deal or no deal on retail pad

[Robert T.]

We have a retail pad (land) on a very busy street in a hot area, surrounded by many chain restaurants.  Broker brought in a franchisee (12 stores) of a national chain QSR who wants to do a 15 year primary term, provided we put in about 400K as tenant improvement. The land is worth about 600-700K. They will build the 2000 sf building according to their corporate specs and do a triple net lease of 75K per year. Benefit is the rent, and risk may be franchisee failure and going dark, being a STNL as compared to multi-tenant or a land lease. Anyone done this kind of hybrid deal? Any advice on risk management?