Franchisee Leasing

Leasing the business premises (real estate) can make or break a franchisee, requiring adequate legal oversight thereof.

Contact Neufeld Legal PC for franchising legal matters at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com

Commercial real estate leasing tends to be one of the most significant financial investments for franchisees, given that leasing the business premises for the franchise from a commercial landlord represents a decades long financial commitment together with a very significant expenditure on the commercial build-out to meet the franchisor's design specifications. Given its significance, it is extremely important that you do not enter the lease agreement for the commercial property without the input at of an experienced commercial leasing lawyer early in the process.

Your greatest advantage in any commercial negotiation exists in the early stages of negotiations and for that very reason you should be engaging legal counsel as early as possible. On far too many occasions, I have witnessed business owners try to save a few dollars by waiting until the last moment to have the lease agreement reviewed, which results in their having a highly unfavourable commercial arrangement that is extremely difficult (and costly) to re-negotiate any concessions out of the landlord. Given how significant real estate is to many business ventures, there is simply no rationale for not engaging the right legal professionals early on to protect your interests and obtain the best possible business deal.

Christopher Neufeld is a business lawyer knowledgeable in the rigors and challenges of the franchise business, together with the legal constructs that are critical to their effective operation. For experienced legal representation in starting, acquiring / selling, operating and managing a franchise, contact franchisee lawyer Christopher Neufeld at 403-400-4092 [Alberta], 905-616-8864 [Ontario] or Chris@NeufeldLegal.com.

Franchisee Real Estate Leasing Basics - Many franchise arrangements require that business operations are undertaken from commercially leased real estate, where it is next to impossible to purchase acceptable real estate at which the franchised business is to be undertaken. As such, it is imperative that your commercial leasing arrangements are correctly undertaken and don't financially hurt your business' profitability, with an understanding of the basics of commercial leasing of real estate being important. Read more.

 

Franchisee Real Estate Lease: Build and Build-out - Although there are a multiplicity of factors at play when a franchisee is looking to commence their particular franchise operation, two of the more consequential aspects that the franchisee (lessor) needs to be aware of are the build (construction of the building) and the build-out (internal work on the leased premises). Read more.

 

Franchisor as Tenant (with Franchisee subleasing) - Whereas tthe typical leasing arrangement is for the franchisee to lease the subject property from the property owner (landlord); on occasion, the franchisor will lease the property from the property owner and thereafter proceed to sublease that same property to the franchisee. As opposed to the franchisee leasing directly from the property owner, having the franchisor enter into the lease with the property owner can be advantageous to the franchisee. Read more.

 

Contact us via email at chris@neufeldlegal.com or call 403-400-4092 / 905-616-8864.