If you are buying a retail franchise business, the lease is a
critical element. Here are 10 questions to ask about your
lease...
Leases can be held in the name of the franchisor or the
franchisee as tenant. Whether you or your franchisor is negotiating
a new lease with the landlord or you are taking over an existing
business and lease, there are basics you need to know beyond the
usual commercial terms.
Just like the franchise agreement, the lease is a binding
long-term commitment and needs to be treated with as much care and
due diligence.
Here are the 10 questions to ask when reviewing a lease...
- Is the lease term long enough?
It is important to have a lease term (or potential lease term
with options) that is long enough to at least match the franchise
term. Your bank will also want to see a lease term that allows you
enough time to recover your/its investment. If you are buying an
existing business and there is not enough lease term left, you
