Five Things You Need to Know Before Entering Into a Franchise Lease

You have made a decision to purchase a franchise which requires that you have retail space – so what do you do  next?  Some of the most recognizable businesses in the marketplace are franchises, however, buying a franchise does not guarantee financial success.  Often the preliminary discussions and negotiations involved for your new business can be intimidating and overwhelming which can be sorted by hiring experts from  There is much to consider in terms of potential business and legal risks before entering into such an agreement, particularly if it is your first franchise lease.  In our legal practice, our real estate lawyers help businesses to find out juice bar franchise cost and then evaluate franchise options before a deal is closed to ensure all the proper precautions are taken.

The following are five tips given by Image One Franchise to help make the franchise lease process a little less stressful, and more successful, for prospective franchisees:

  1. Make sure your lease is directly associated to the business brokerage franchise.  For example, if your franchise involves the sale of any goods or merchandise, your lease must give you permission to sell them.
  2. The lease must also be directly associated to the franchise agreement.  What this means is that if the franchisor requires certain hours of operation for your business, the lease also must specify that you are permitted to operate during those hours.  Other tenants should have similar operational hours and the appropriate security, lighting and other services required for your business to run should be provided, per the agreement.
  3. For purposes of displaying any signage or modifications to the exterior of the building required for your business, the lease as well as any related zoning ordinances must allow you to do so.  The best approach is to submit these plans and materials to the landlord for approval, prior to signing your lease.
  4. Involve your franchisor, if possible, in the site selection and lease process from the very beginning.  The franchisor will have experience and suggestions as to which locations are preferable for the type of business you will be operating as well as know what to look for in terms of layout and other factors pertinent to the company’s success.  Obtaining your franchisor’s input from the onset will help you avoid the trouble of getting stuck with a lease that will not work for the particular franchised business.
  5. The lease should have an element of flexibility should the landlord have the option to relocate to another space.  Your franchise agreement must allow for such a move in order to not be considered a breach of the franchise agreement.  Often times, you may specify in your lease that the landlord’s right to relocate is contingent upon the franchisor’s approval.

It’s always advisable to involve an experienced real estate attorney to guide you through the franchise lease process and handle negotiations from the start to prevent unforeseen circumstances prior to signing any documents as well as to prevent problems that could arise down the road.  Our attorneys are well-equipped to provide the guidance you need in getting your franchise lease and business off to the right start.  Contact attorney Blake Bringgold today for a consultation.