As a franchisee, you may have found it quite easy to secure a lease with a commercial landlord; however, you may face many roadblocks if, or when, you need to terminate your lease prior to the end of the term.
With franchisor support, better name recognition and industry history behind them, franchise tenants are typically more desirable to a commercial landlord than independent business operators. Even though you may have had the advantage in negotiating your initial lease with your landlord, you will not have this same advantage when terminating your lease.
As The Lease Coach, I have been coaching and consulting with independent and franchise tenants since 1993. Over the years, how to terminate a lease has proved to be a common question and rightfully so. If the business is failing, should the tenant continue to lose money? No. You have numerous options available that may or may not help you to terminate - perhaps with limited personal loss and damage. In no particular order, my professional recommendations are as follows:
Overall, franchise tenants should carefully consider these various options as well as their own situations prior to terminating a lease. Taking initial precautions prior to signing a lease are often best (such as having a lease consultant review the document for your own protection). If you have never gone through this before, it is reasonable to expect that you will need some help.
Dale Willerton is The Lease Coach and a senior commercial lease consultant who works exclusively for tenants. Dale is a professional speaker and author of Negotiate Your Franchise Lease or Renewal. Got a leasing question? Need help with your new lease or renewal? Call Dale at 1-800-738-9202, e-mail DaleWillerton@TheLeaseCoach.com or visit www.TheLeaseCoach.com / www.HelpULeaseFranchise.com.
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