Commercial leases are complex, and without the right advice, you could find yourself tied into a lease you no longer want or liable for costly repairs and obligations.
We advise franchisors on:
• Choosing the best structure for leasing premises
• Understanding lease terms and obligations
• Managing risk and future liabilities
• Aligning lease terms with franchise agreements
• Drafting watertight clauses to protect your brand and business
As accredited members of the British Franchise Association (BFA), we adhere to the highest standards of ethical franchising and legal practice.
1. Franchisee Signs the Lease Directly
You may allow your franchisee to find and lease premises directly from the landlord. While this gives them autonomy, you should still retain oversight of the lease terms. A Deed of Option can give you the right to take over the lease if the franchisee exits the business.
2. Franchisor Leases and Sub-Lets to Franchisee
For greater control, you can lease the premises yourself and sub-let to your franchisee. This ensures consistency in location, layout, and branding. The sub-lease will mirror the head lease, ensuring your franchisee complies with the landlord’s requirements.
This approach also gives you flexibility to continue operating the site or install a new franchisee if the original one leaves.
You may wish to control the fit-out process to ensure uniformity across your franchise network. You can require franchisees to cover the cost while using your approved contractors to carry out the work to your specifications.
Commercial leases can carry hidden risks, including:
• Repair obligations: You may be required to return the property in better condition than when you took it on.
• Lease length: Long leases can become a burden if a franchisee fails. Ideally, lease terms should align with the franchise agreement.
• Unexpected costs: Business rates and service charges can significantly increase your overheads—often by up to 40%.
We’ll help you understand your liabilities and ensure your franchise agreement includes robust clauses around property use and franchisee responsibilities.
• Combined expertise in franchise law and commercial property
• Practical advice tailored to your business model
• Strong industry knowledge and BFA accreditation
• Recognised in The Legal 500 and awarded the Law Society Mark of Excellence
Our specialist commercial lawyers offer a one-stop-shop for legal advice for all types of business – from start-ups to established companies.
All of our lawyers are specialists in their area of law. Book in for an initial discussion where we will discuss all of your options with you.
