In some cases, we can offer limited-scope lease negotiation services for franchisees of our franchisor clients. Most franchise agreements for retail concepts require that the franchisee (1) negotiate the lease to include certain terms required by the franchise agreement and/or (2) cause the landlord to sign a “lease addendum” prescribed by the franchisor. In either case, the mandatory terms are designed to protect the brand and the franchisor’s interests. 

Also, many franchise agreements include terms that grant the franchisor: 

• a “purchase option” to purchase the business from the franchisee and assume the lease at the end of the franchise relationship; and/or 
• a “right of first refusal” to acquire the business from the franchisee and assume the lease upon the same terms offered by the franchisee to a prospective third-party buyer.

A franchisor who exercises a purchase option or right of first refusal may end up becoming the tenant under the franchisee’s lease. 

When the franchisor’s and franchisee’s interests in the lease negotiations are aligned, our attorneys may negotiate the lease on behalf of the franchisee for a discounted flat fee rate while at the same time ensuring the franchisor’s interests are protected.* In other words, we may serve as a system supplier for lease negotiation services under terms and conditions you negotiate with us for the benefit of you and your franchisees. 

* In some circumstances, however, we may be precluded from offering this service due to an actual or potential conflict of interest. Each potential representation must be evaluated on case-by-case basis for potential or actual conflicts.