LEASES TIPS & TRAPS FOR FRANCHISEESBy Raynia Theodore, Mason Sier Turnbull Lawyers Many franchised businesses are conducted from premises that are leased, with either the franchisor or franchisee required to sign a lease to obtain the right to occupy the premises.
It is important to remember there is no such thing as a “standard lease”. Lease terms, especially the commercial terms, are negotiable and to a certain extent, the non-commercial terms are also negotiable, especially for premises that are not located in shopping centres.
Where premises are located in shopping centres, usually the terms of the lease are not easily changed. However, in the current economic climate, we have found that shopping centre landlords
have become more amenable to making changes to their leases.
Once you have decided to purchase a franchised business that is to operate from fixed premises, the main questions that should be asked are: ‘Who will find the premises?’ and ‘Who will hold the lease for the premises?’ The decisions are usually made by the franchisor with little or no input from the franchisee, especially where the franchised business being purchased is an existing business with a lease already in place.
Even with new or “greenfield” franchises, franchisors generally wish to control the site selection process. In such a case you should quiz the franchisor about its site selection process and the factors taken into
account in selecting the particular premises. |
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This article appeared in Issue 4.1 of Business Franchise Australia and New Zealand. 
Kevin Bugeja, Managing Director
Franchise Selection
Phone: 1300 FRANCHISE (372 624)
Mobile: 0412 511 630
Email:
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Web: www.franchiseselection.com.au If you are looking for a franchise opportunity, the choice is mind boggling. There are literally over a thousand different types of franchises available in Australia for you to choose from and there will probably be more than one or perhaps many in your chosen business area. You obviously want to select a profitable business venture so it is important that you thoroughly research the opportunity. Once you have bought a business it is difficult to turn back; a wrong decision takes a few seconds to make, and for some, a lifetime to put right. So do your research. Look at the alternatives. Ask existing franchisees, customers, bank managers etc. Research franchise magazines, newspapers, websites, attend franchising exhibitions and seminars to obtain as much information about franchising as possible. Many of these seminars are provided free of charge by service providers or advisors in the industry, so do your homework and you will be surprised just how much information is out there. |
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This article appears in Edition 4.1 (November/December 09) of Business Franchise Australia and New Zealand BOOST your business … tips from the founder of Boost Juice They say “to succeed you need money, a college education and be really, really smart ...” Bollocks! What you need is a huge care factor, to be a quick learner, have an impeccable integrity and to work, really, really hard. Let me introduce myself. My name is Janine Allis and you may have heard the Boost story ... it goes something like this: Mother of 3 (now 4, but that’s another story) starts a new retail concept: Boost Juice. It explodes, she makes a bucketful of money and everything is just dandy. Or is it? |
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