Commercial Leases for Restaurant Franchises: Key Issues for the Parties; Negotiation and Drafting Strategies

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Course Details
- smart_display Format
Live Online with Live Q&A
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Real Property - Transactions
- event Date
Friday, November 21, 2025
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
-
Live Online
On Demand
This CLE webinar will examine unique issues facing counsel when drafting commercial leases for franchised restaurant businesses. The panel will discuss key terms that should be included in the lease to best protect clients—whether representing the landlord, franchisor, or franchisee—and offer best practices for ensuring that the commercial lease harmonizes with the franchise agreement to minimize potential conflicts that could negatively impact their clients.
Faculty

Mr. Welch handles real estate transactions for high-profile individuals and businesses in the entertainment, advertising, restaurant, personal care, and professional services industries. He regularly advises on purchases, sales, leases and financings of a wide range of commercial properties -- including retail stores, restaurants, music studios, art galleries, advertising agencies, gyms, professional offices, schools and other public spaces across the country. He guides clients at every stage of their real estate journey – from opening their places of business, to buying and selling land and buildings, to purchasing investment properties and personal residences. In addition to his real estate transactions practice, Mr. Welch works with the the firm’s Litigation Group to resolve real estate-related disputes, and with the Restaurants Group to provide legal advice to restaurateurs and their business partners. Mr. Welch serves as Chair of the New York City Bar Association’s Hospitality Law Committee. He has presented on real estate issues for the New York City Bar Association and other organizations.
Description
While restaurant leases in general have unique issues for landlords and tenants beyond those for other commercial uses, restaurant leases for franchises have additional considerations of which counsel should be aware to best protect their clients' interests—whether they represent the landlord, the franchisee who will be operating the business on the premises, or the franchisor behind the franchisee. Therefore, boilerplate language should be avoided.
It is essential that counsel draft the terms of the commercial lease to harmonize with the franchise agreement so that adherence to one does not violate the other. Real estate issues related to the franchise relationship that should be carefully negotiated and reflected in the terms of the lease include exclusivity relationships, collateral assignment and contingent options, renewal rights, costs of improvements, branding and advertising on the property, and other key considerations.
Listen as our expert panel discusses important negotiation and drafting strategies for commercial leases involving franchised restaurant businesses. The panel will address how to ensure that the commercial lease does not conflict with the franchise agreement and offer best practices for minimizing client risk.
Outline
I. Introduction
A. Franchisor/franchisee/landlord relationship generally: distinguishing features from more traditional landlord/tenant relationships
B. Importance of correlating the commercial lease and franchise agreement
II. Restaurant franchise lease structures
III. Commercial lease terms unique to restaurant franchises
A. Landlord considerations
B. Franchisor considerations
C. Franchisee considerations
IV. Practitioner takeaways
Benefits
The panel will review these and other important issues:
- How does the landlord/franchisor/franchisee relationship create additional challenges for counsel when negotiating and drafting commercial leases for restaurant franchises?
- What are common lease structures used for this type of business relationship?
- What are key landlord considerations when negotiating and drafting a restaurant franchise lease? Franchisor considerations? Franchisee considerations?
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