The Franchise Lease Agreement is utilized when a business wants to grant both franchise rights and property occupation rights to a franchisee under a single agreement. This comprehensive document, governed by English and Welsh law, streamlines the relationship between franchisor, franchisee, and property owner by combining what would traditionally be two separate agreements. It's particularly relevant for franchise operations requiring specific locations, such as retail outlets or restaurants, and includes detailed provisions for both the operation of the franchise and the occupation of the premises.
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1. Parties: Identification of franchisor, franchisee, and property owner
2. Background: Context of the franchise arrangement and property lease
3. Definitions: Key terms used throughout the agreement
4. Grant of Lease: Terms of the property lease
5. Grant of Franchise: Terms of the franchise license
6. Rent and Other Payments: Financial terms including rent, service charges, and franchise fees
7. Tenant Covenants: Obligations of the franchisee as tenant
8. Landlord Covenants: Obligations of the landlord
9. Term and Termination: Duration and ending conditions
1. Break Clause: Early termination provisions - use when parties want flexibility to end the agreement early
2. Change of Control: Provisions for ownership changes - include for corporate franchisees
3. Service Charge Provisions: Details of service charge calculations - include for properties in multi-let buildings
1. Property Description: Detailed description and plans of the premises
2. Franchise Operations Manual: Detailed operational requirements and standards
3. State of Condition: Property condition report at lease commencement
4. Permitted Use: Specified allowed uses of the premises
5. Brand Standards: Required franchise brand standards and specifications
6. Insurance Requirements: Required insurance coverage details
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