Sufficient capital reserve is required to ensure that the entire chain process does not get stuck up midway due to paucity of funds. After a period of time, if the single franchisee displays ability to succeed in the entire market, it can be declared as the master franchisee. If you decide to start franchising your business, an experienced franchise attorney at Denton Peterson Dunn can assist you through the process. It’s everything else, making sure that you can, down the road, if you want to sell the business, to sign that lease to another franchisee to your buyer, and negotiating all of the rest of the clauses in that lease. Absolutely. So, the franchisor is the person who is going to help you find the location, and a good franchise system has a national broker system and usually, local brokers that they can connect with who understand the brand, understand the business, and may have some demographic studies as well to help them figure out who is their perfect customer so that they know the locations to be looking in. Data has been cre ated by GSA Content Generator Dem oversion!
And it can take a long time just to even find a good location. Franchising is a hardcore technical field which demands good amount of knowledge and information before pumping time and money into businesses. And I was in charge of the 500 corporate leases around the country, so that’s how I got involved both in franchising and in the commercial lease as a tenant attorney. Is the lease assignable in this business? Those business terms, once finalized and agreed upon by both sides, are memorialized in what’s called a letter of intent, otherwise known as an LOI, and that LOI, which is usually three to five pages in duration, will specify those business terms. That real estate department will have somebody who will get involved in every step of the lease, all along, from start to finish, in helping with everything, and which is great. Six months, start to finish, is when things go smoothly, because then you have to get permits.
So, if everything were to go smoothly in a lease, you’re talking about from start to finish, finding a location to signing and so forth. However, it is stated to be non-binding, but be careful because although it doesn’t create a contract by itself, those terms are usually held to be binding by the landlord, so if you’re not comfortable with whatever that LOI says, don’t sign it, wait and have some of those terms negotiated when we get involved down the road. And an example of that might be Americans with Disability Act compliance, so that if somebody’s coming into your business and they’re in a wheelchair or on crutches, and there aren’t enough handicapped parking spots or the curb cut is too steep, that representation warranty can help with that, and negotiating and limiting the remedies the landlord has, if you’re in default and giving lots of notice and opportunity to cure the default. Landlord could take three weeks right there, after sending that on.
We could have closed four weeks after it all started. Everybody’s understaffed, so who knows, can you even get the products that you need to have the build out? Landlords are notoriously slow, and I’ve never figured out why, and their attorneys are just as bad by the way, and even during the recession in 08, 9, and 10, we had landlords with shopping centers that were half vacant and they still moved at the snails pace, and I don’t even know why. Usually, they also are involved in the site selection process, and approve the site before it even gets to us. Franchise tax preparation assistance is one more good selection for having your taxes ready. I mean, that’s not ideal obviously, and then I have other clients that while they’re having us review their franchise agreement, have already found a location for the business. If they’re more established franchises, they typically will have a real estate department. Content w as g en er ated by GSA C ontent Gener ator DEMO!