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I’ve found an excellent site for a franchise I would like to purchase. Does my franchisor have to ap
Whether or not a franchisor will want to approve a site for a franchise depends on the type of franchise on offer. If the location and/or type of premises to be used by the franchisee is important to the success of the franchise, then the franchisor will usually want to approve the premises before the franchisee takes a lease. There may be explicit obligations on the franchisee in the franchise agreement to seek the approval of the franchisor for the franchise premises and sometimes there is a set procedure that must be gone through to obtain this approval.The franchisor will probably provide the franchisee with criteria for selecting a site, such as the quality of the trading location, amount of space required and ability to satisfy planning requirements, based on its experience of operating the franchise business in other areas. In approving the premises, the franchisor will consider whether or not the site found by the franchisee meets the set criteria. Some franchisors will also want to review or approve the lease of the site.The franchisor may want to check that the lease is for a long enough term to cover the franchise agreement term and any renewal and there are no onerous provisions or provisions that might interfere with the operation of the business. The franchisor will probably have more experience than the franchisee in negotiating leases and it may be able to provide useful assistance.If the site of the franchise is simply a base from which the business is located, the franchisor may provide criteria for the selection of premises, but may not need to approve them. Taking a lease of premises is not without risk and you should always consult your solicitor before making any commitment.
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