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Franchise Lease Agreement
"I need a Franchise Lease Agreement for a Cafe franchise in Melbourne, Australia, where I'm the franchisor leasing a corner property to a new franchisee, with the lease term starting March 1, 2025, including specific provisions for outdoor seating and early morning trading hours."
1. Parties: Identification of the franchisor/lessor and franchisee/lessee, including ABN/ACN and registered addresses
2. Background: Context of the agreement, including franchise system description and property details
3. Definitions: Comprehensive definitions covering both franchise and lease-specific terms
4. Grant of Lease: Terms of the lease grant, including premises description and permitted use
5. Term and Option Periods: Duration of lease, commencement date, and any option periods
6. Rent and Other Payments: Base rent, franchise fees, outgoings, security deposit, and payment terms
7. Use of Premises: Permitted use, trading hours, and franchise system requirements
8. Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements
9. Insurance and Indemnity: Required insurance coverage and mutual indemnification provisions
10. Assignment and Subletting: Conditions for transfer of lease or franchise rights
11. Default and Termination: Events of default, remedies, and termination procedures
12. Make Good Obligations: End of lease restoration requirements and franchise-specific debranding
13. Dispute Resolution: Process for resolving both lease and franchise disputes
14. General Provisions: Standard boilerplate clauses including governing law and notices
1. Franchise Territory: Used when the lease premises correspond to a defined franchise territory
2. Development Works: Include when initial fit-out or substantial modifications are required
3. Marketing Fund Contributions: Required if the franchise system includes a marketing fund
4. Competition Restrictions: Used when specific non-compete provisions apply to the premises
5. Multiple Site Provisions: Include when the franchisee operates multiple locations
6. Guarantee Requirements: Used when personal or bank guarantees are required
7. Environmental Obligations: Include for businesses with specific environmental impacts
8. Drive-Through Provisions: Required for premises with drive-through facilities
1. Schedule 1 - Premises Plan: Detailed plan showing the leased premises and common areas
2. Schedule 2 - Rent Schedule: Detailed breakdown of rent calculations and review mechanisms
3. Schedule 3 - Franchise Fees: Schedule of all franchise-related fees and payments
4. Schedule 4 - Fit-out Requirements: Specifications for premises fit-out meeting franchise standards
5. Schedule 5 - Operating Requirements: Detailed franchise system operating procedures for the premises
6. Schedule 6 - Maintenance Schedule: Detailed maintenance obligations and schedules
7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and minimum coverage
8. Appendix A - Disclosure Statement: Franchise Code of Conduct required disclosure document
9. Appendix B - Guarantees: Forms of any required guarantees
10. Appendix C - Condition Report: Initial condition report of the premises
Authors
Retail
Food and Beverage
Automotive
Health and Fitness
Education and Training
Professional Services
Real Estate
Hospitality
Personal Services
Home Services
Legal
Property
Operations
Finance
Compliance
Risk Management
Business Development
Real Estate
Franchise Development
Commercial
Franchise Development Manager
Property Manager
Legal Counsel
Commercial Leasing Manager
Business Development Manager
Operations Manager
Compliance Officer
Chief Financial Officer
Real Estate Manager
Franchise Operations Director
Risk Manager
Property Portfolio Manager
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