Franchise Glossary
Tenant Improvement Allowance (TIA)
What is Tenant Improvement Allowance (TIA) in franchising?
Money your landlord contributes toward the cost of building out and customizing your leased space to meet the franchise brand's design specifications. TIAs can range from $10 to $100 or more per square foot depending on the market, lease length, and landlord. Negotiating a strong TIA is one of the most impactful financial moves a new franchisee can make. It directly reduces your out-of-pocket initial investment. Ask the franchisor what TIA amounts are typical for the brand in your market, and factor this into your site selection process.