This form is a franchise lease agreement. The lessor agrees to lease to the franchise owner certain real estate as described in the document. The franchise owner will use and occupy the premises solely for an ABC System Restaurant.
Oklahoma Lease for Franchisor - Owned Locations
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FAQ
The property owner provides business space to a franchisee to operate the franchisor's business plan in return for a lease payment. Under the lease terms, the property owner gives rights to the franchisor to replace and assume the Franchisee Business Entity under certain conditions.
The property owner provides business space to a franchisee to operate the franchisor's business plan in return for a lease payment. Under the lease terms, the property owner gives rights to the franchisor to replace and assume the Franchisee Business Entity under certain conditions.
If you assign the lease to a franchisee, the franchisee will be responsible for paying rent and fulfilling any repair and maintenance obligations under the lease agreement.
Essentially, franchise agreements work by one party (the franchisor) granting another party (the franchisee) the right to operate a business under certain conditions and typically using the franchisor's branding and intellectual property.
Other reasons a franchisor might terminate a franchise agreement include the franchisee being convicted of a crime, going bankrupt, losing a license necessary to operate the franchise, failing to pay royalties or any other violations that go against the contract.
Leasing property for a franchise involves two different agreements ? the franchise agreement and the commercial lease. The franchise agreement sets forth the franchisor's rights and requirements with respect to leases signed by the franchisee.
Essentially, the lease rider is an additional/separate agreement between the franchisor and the landlord, which accompanies the franchisee's lease with the landlord. The purpose of the lease rider is to protect the franchisor by including options for specific contingencies that may arise concerning the franchisee.
A franchise enables you, the investor or franchisee, to operate a business. You pay a franchise fee and you get a format or system developed by the company (franchisor), the right to use the franchisor's name for a specific number of years and assistance.