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.
Kentucky Lease for Franchisor - Owned Locations
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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.
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.
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.
As the Franchisee framed its argument, KFC (1) had discretion under the contract regarding outlets beyond the one and one-half mile radius from franchisee's outlets; and (2) ?set its own bar? for reasonable non-encroachment by creating and following location impact guidelines.