When purchasing a business or franchise, in most instances, one of the primary assets that you will be acquiring is the “lease” to the existing business location / store that you are “buying”. A few of the many obvious reasons as to why your lease agreement will be crucial, include:
Recognizing the obvious importance of the “lease assignment”, as a purchaser, at the outset of your proposed purchase transaction, it is critical that you communicate with the landlord and obtain the landlord’s written consent to your purchase transaction and the expected operations of your business. The landlord’s consent must be identified as an express contingency specified in your purchase agreement and, among other things:
(a) be in writing;
(b) be signed by the landlord;
(c) acknowledge the landlord’s approval of the assignment;
(d) expressly acknowledge that the lease is in “full force and effect” with no outstanding defaults by the seller; and
(e) acknowledge the amount of the tenant’s security deposit.
Date: 03/02/2015 | Category: Buy a Franchise
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