As the franchise industry evolves and expands, the intricacies of real estate leasing and leasehold improvements become increasingly pivotal. This session is designed specifically for lawyers and franchisors, providing them with the expertise needed to support franchisees effectively, thus facilitating smoother expansion and growth. By deepening the understanding of these critical areas, franchisors can create a more robust support system, leading to enhanced franchisee satisfaction and operational success.

Key topics include:

• Leasing and Subleasing Dynamics:
  • Essential lease provisions and clauses that protect the interests of both franchisors and franchisees. The legal pros and cons of structuring a franchise tenancy as a sublease or a headlease.
• Accurate Leasehold Improvement Estimates:
  • Addressing the common issue of underestimated leasehold improvement costs in the Franchise Disclosure Document (FDD).
  • Strategies for keeping leasehold improvement estimates accurate and updated, preventing budget overruns and project delays.
  • Practical advice on guiding franchisees in selecting suitable spaces that align with their budget and operational needs.
• Practical Insights into Common Leasing Issues in Franchising:
  • Managing landlord interest on termination or rescission.
  • Managing tri-lateral conflicts among landlords, franchisors and franchisees

This session will equip lawyers and franchisors with the essential knowledge and tools to effectively manage real estate challenges, supporting the evolution and expansion of franchise systems.

Learning Objectives:

1. Understanding Lease Dynamics: Learn essential lease provisions and legal considerations for subleasing vs. head leasing.
2. Estimating Leasehold Improvements: Address underestimated costs in Franchise Disclosure Documents (FDD) and manage budgeting effectively.
3. Navigating Common Leasing Issues: Manage landlord interests, termination, and conflicts among landlords, franchisors, and franchisees.