The site selection process for franchisees can be a tedious endeavor. You must find a location with the correct square footage, layout, accessibility, and demographics in the area that you and the franchisor have agreed you will establish the franchise. Once you have found a suitable location, you might be tempted to sign the lease without having an attorney review it and negotiating terms, not wanting to risk going through the search process yet again. This is a dire mistake and could negatively affect the success of your franchised business going forward.
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Franchisors whose business model involves physical locations for their units have certain specific interests and concerns relating to the leases entered into between their Franchisees and the Franchisees' landlords. Franchised locations, by virtue of being physical and visible to the public, can develop an ongoing brand awareness associated with their locations. Franchisors strive to protect that brand awareness by imposing certain restrictions and conditions on the Landlords who own and/or lease those locations.