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Course Details

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

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?