Before You Sign on the Dotted Line: Leasing Guidelines for Franchisees (Part A)

If you are planning to become a franchisee in New York you will probably have to lease a space for your new franchised business. When you sign a lease, your leasing arrangement may be in the form of a sublease from the franchisor, or a direct lease with an independent landlord. Leasing can be a complicated process, especially when franchising, so you may want to get the professional help of a New York franchise lawyer to help you protect your rights and business interests throughout the process.

Selecting a Location for Your New York Franchise

As a franchisee in New York, there are many things to consider when selecting your business location.

When choosing the location for your New York franchise, you should take into account:

• the quality of the building;
• the location;
• the businesses that surround the property;
• the potential for pedestrian and/or vehicular traffic; and
• the parking availability.

All of these factors will play a role in your potential for success. Therefore, a franchisee in New York should analyze these factors carefully before signing a lease agreement.

A Closer Look at The Lease

When you choose a location for your New York franchise, you will almost inevitably have to sign a lease.

Generally, a lease will include terms and conditions such as:

• liability;
• assignment rights;
• compliance with laws for repairs and alterations;
• escalations of rent; and
• rights for termination.

When reviewing a lease, a New York franchise lawyer can help you dissect the terms and conditions and help you look out for potential legal headaches and "landmines." Your franchise lawyer can also advise you on the pros and cons of a particular lease agreement. If a lease can be improved upon, your lawyer may be able to negotiate the terms.

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