Instead, the franchisor will retain the main lease with the owner and sublet you as a franchisee. The benefits of operating under a head-lease can also work against you, depending on how long the franchise lasts. If you are a franchisee and have not recently had your franchise agreement and lease checked by a lawyer, we urge you to ask your lawyer to check them for you now. In most cases, a lawyer can check your franchise agreement, your lease and any surcharge for less than $800. Franchisors tend to prefer the head-leaseback model to protect and preserve their reputation. You will often see it in large office buildings where the building itself (the property area) is owned by a strata company and where the main lease is held by a real estate management company (or even some of these companies in the same building) for several floors and/or suites. What are the pros and cons of a stand-alone loan and do banks see less risk in this type of agreement? Instead of reducing these soft incentives for renting and leasing, some franchisors can use the existing business agreements they have with the owners and retain those benefits themselves. Banks tend to prefer head credit agreements because, in the event of default, you are not primarily responsible for rent and lease expenses. For now, Subway has not been upset that franchisees are breaking their 20-year franchise contracts as soon as their five-year leases expire. But it was also a booming business for most of its 54-year history.
The nutritional information cited is based on standard formulas and product formulations, but minor deviations may occur due to the season, the use of an alternative supplier, the region of the country and/or slight differences in product assembly. Some information about nutritious products or products may not apply to all restaurants. If you have questions about products, processes or ingredients in a particular restaurant, please contact the restaurant. Second, a lawyer and a lawyer can help you through the sublease agreement (and the franchise agreement) and identify clauses that may not be in your best interest. In many cases, you may lose some of the control and flexibility of your sublease that you had with your franchisor.