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Franchise leases require special attention

| Sep 22, 2020 | Commercial Real Estate |

Starting a business from scratch does not appeal to many California entrepreneurs. They would rather open a business with an established brand and products that they can take advantage of and with which they can increase the chances of success. When doing so, they may enter into franchise leases, which require special consideration due to the need for some particular elements.

For instance, the branding designed to help get the business off to a good start needs to be addressed in the lease. This is done in order to protect the franchisor and the franchisee. After working for some time to build the particular brand in question, the franchisor will want to make sure that anyone using it will not do anything to tarnish it.

Many franchises use certain vendors for supplies. When entering into a lease for a franchise, California entrepreneurs will want to make sure they have access to those vendors in order to obtain the supplies they need in order to operate. Adding provisions to the lease regarding vendor lists could give the franchisee some peace of mind that vendor lists will be available and readily provided.

In addition to these and other specific clauses required by franchise leases, all the other usual provisions may also require negotiation. While many franchises have stringent rules and provisions in their agreements, franchisees may still be able to take steps to ensure their rights and interests are protected as well. To increase the chances of entering into a balanced and fair agreement, it would be wise to work with an experienced attorney who can help make that desire a reality.