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.
Massachusetts Lease for Franchisor - Owned Locations
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FAQ
Massachusetts is classified as a non-registration state because there is no state franchise registration, business opportunity exemption registration, or other franchise disclosures required by the state.
A franchisee is a business owner who is licensed to operate a branded outlet of a retail chain. The franchisee pays a fee to the franchisor for the right to sell its established products and use its trademarks and proprietary knowledge.
It generally takes the form of an additional agreement that is attached to the lease between the franchisee and the property owner, or it is sometimes a provision contained in the terms of the lease itself.
A franchise owner is an individual who has taken on the role of owning and operating a franchise business independently. Franchise owners have made an investment in the franchise and hold the rights and responsibilities associated with running that specific franchise location.
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 franchisor makes store location recommendations based on things like vehicle traffic, foot traffic in the area and demographics. They have access to reports that help them decide if the location you're choosing, or the one they've suggested, has the potential to be a good one.
The owner of a franchise business is called a franchisor, while the licensee is known as a franchisee. Many locations of common retail chains such as McDonald's and Jiffy Lube are operated by franchisees instead of being owned by the parent company.
Simply put ? within a chain business, a parent company owns each location. With a franchise, different stores or branches are owned by separate individuals who are solely responsible for daily operations.