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Liability
When signing a lease, a franchisee in New York may be asked to personally guarantee their financial obligations. When doing so, you must distinguish between your company's liability and your own personal liability. The most preferable type of guarantee is a "good guy" guarantee, in which you will only have to guarantee the rent while you occupy the property.
Assignment Rights
A franchisee in New York may be granted the rights to assign a lease agreement. The lease should specify what is permitted and what is prohibited when assigning the leasing rights.
Termination of Rights
In case of an extraordinary event, such as a natural disaster or other catastrophe, you may be able to terminate your rights to a lease agreement. These rights should be specified within the lease, as well as a clause defining the type of property insurance that is required.
Repairs and Alterations
As a franchisee in New York, your lease should specify who is responsible for maintaining your commercial property. This should include any repairs and alterations that may be made to the leased building. Structural elements such as plumbing and electricity should be handled by the landlord, as well any basic infrastructure of the commercial property.
Escalation of Rent and Other Costs
A lease should specify the cost of a property, as well as any possible escalations of the rent. This way, before signing a lease agreement, a franchisee in New York can analyze aspects of the lease that may lead to additional costs.
The "As Is" Clause
In a commercial lease, a landlord will generally include an "as is" clause, which means that by signing the lease you agree to lease the property in its existing condition. Therefore, before signing a lease with an "as is" clause, you should have the property inspected by a professional engineer.
Disregarding Verbal Promises
Once you sign a commercial lease, verbal promises by the landlord will hold no legal merit. Therefore, before signing a lease, read it carefully, and go over the terms with your New York franchise lawyer. A New York franchise lawyer can help you understand the financial liability associated with a lease, as well as look at the bigger picture in relation to your overall business interests. This step may help you avoid legal complications in the future.
Contacting a New York Franchise Lawyer
If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.
