Commercial Leases for Restaurants and Franchise Operations

(Paperback)

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Description

A lawyer can substantially increase a clients chance of success in a restaurant lease--or at least minimize the risk of failure--in two ways: first, by reviewing and negotiating the lease of the restaurants premises, identifying and evaluating the risks and negotiating changes, and secondly, through the careful review and negotiation of the franchise agreement if the client pursues that option.

Franchised operations are popular for people investing in restaurants as this purchase can give restaurateurs a head start in terms of brand recognition, marketing, consistency of food quality, and service. However, signing a boilerplate franchise agreement is not necessarily a recipe for success. It is essential that the franchise agreement and the commercial lease harmonize so that adherence to one document does not cause a violation with the other.

Among the topics covered in the restaurant section are:

• Computation of rental charges and rent offsets
• Operational issues: hours, go dark provisions, definition of premises, and more
• Construction
• The emerging category of "grocerants"

This section concludes with an extensive array of restaurant leasing clauses, from CPI increases and rent stabilization clauses to language for premises issues such as lighting, valet parking, and more.

Chapters focused on working with a restaurant franchise consider issues related to the client, choosing a landlord and location, management, architect and general contractor, he franchisor and the franchise agreement, and the lender.

Author Bio

Mark Dall has been practicing law since 1978. He is admitted to practice in both Indianaand Arizona. Since 1984, he has worked as a real estate attorney for the largest shoppingcenter developer in the United States, with a focus on retail and restaurant leasing.He has made presentations on commercial leasing to various continuing legal educationsprograms, including the International Conference on Shopping Centers, the NationalBusiness Institute, and the Indiana Continuing Legal Education Forum. He is the coauthorof Commercial Retail Leases and Outlot Purchases, which was first published bythe American Bar Association in 2014. Noble Hatfield has been practicing law for over 25 years and is admitted to practicein Indiana. He obtained his JD in 1992 from Indiana University School of Law Indianapolis(cum laude) and his Master of Science in Industrial Administration (MBA-style)degree from Krannert Graduate School of Business at Purdue University in 1976. As anattorney, he continues to focus on strip center development and leasing and has extensiveenclosed mall background. Prior to earning his JD, he worked in the printing field,including owning his own business. Currently, he is co-owner of 3 fast-casual franchisedrestaurants. He is the coauthor of Commercial Retail Leases and Outlot Purchases, whichwas published by the American Bar Association in 2014.