Commercial Leases for Restaurants and Franchise Operations - Mark E Dall

Commercial Leases for Restaurants and Franchise Operations Mark E Dall ISBN 9781641051514

An attorney can significantly improve a client’s prospects for success in a restaurant venture—or, at minimum, reduce the risk of failure—in two critical ways. First, by carefully reviewing and negotiating the lease for the restaurant premises, identifying potential risks, and securing favorable revisions. Second, when applicable, by thoroughly reviewing and negotiating the franchise agreement if the client chooses a franchised restaurant model.

Franchised restaurant operations remain an attractive option for investors, offering advantages such as established brand recognition, marketing support, and consistency in food quality and service. However, a standard, boilerplate franchise agreement is not a guarantee of success. It is essential that the franchise agreement and the commercial lease are aligned, as compliance with one should not inadvertently result in a breach of the other.

The restaurant leasing section addresses a wide range of practical and legal issues, including:

• Calculation of rent and rent offsets

• Operational provisions, such as hours of operation, “go dark” clauses, and the definition of the premises

• Construction and build-out considerations

• The emerging “grocerant” concept

This section concludes with an extensive collection of sample restaurant leasing provisions, covering matters such as CPI-based rent increases, rent stabilization, and site-specific issues including lighting, valet parking, and similar operational concerns.

Chapters devoted to restaurant franchising examine the full scope of the transaction, including considerations related to the client, selection of the landlord and location, management structure, architects and general contractors, the franchisor and franchise agreement, and lender requirements.

Commercial Leases for Restaurants and Franchise Operations Mark E Dall ISBN 9781641051514, 978-1641051514 & 9781641051521

Authors
Mark E Dall
Noble Carter Hatfield