This agreement is an amendment to the original terms and conditions of a franchise agreement. This agreement provides that the Franchisor and the Franchisee shall use their best efforts to mutually determine an appropriate location for Franchisee’s business. The location shall be approved by the Franchisor, and once approval has been obtained the Franchisee and landlord will enter into a lease agreement subject to the conditions set forth is this agreement. This template document contains opportunities for optional language and can be customized to fit the needs of the drafting parties. This document should be used by franchisors or franchisees before a location for the franchisee’s business has been selected.
This agreement is an amendment to the original terms and conditions of a franchise agreement. This agreement provides that the Franchisor and the Franchisee shall use their best efforts to mutually determine an appropriate location for Franchisee’s business. The location shall be approved by the Franchisor, and once approval has been obtained the Franchisee and landlord will enter into a lease agreement subject to the conditions set forth is this agreement. This template document contains opportunities for optional language and can be customized to fit the needs of the drafting parties. This document should be used by franchisors or franchisees before a location for the franchisee’s business has been selected. LOCATION FRANCHISER SUBLEASE FRANCHISEE THIS AGREEMENT (the “Amendment Agreement”), is made this ____ day of ________, 2____, [Instruction: Insert date.] by and between _____________ [Instruction: Insert Franchiser name..] (the “Franchiser”) and _______________ [Instruction: Insert Franchisee name.] (the “Franchisee”). WHEREAS, the Franchiser and the Franchisee have entered into a Franchise Agreement (the “Franchise Agreement”) dated the _____ day of ____________, 2____. [Instruction: Insert date of franchise agreement.] AND WHEREAS, the Franchiser and the Franchisee desire to enter into this Amendment Agreement to amend the Franchise Agreement pursuant to the terms and conditions contained herein (the “Amendment Agreement”) NOW THEREFORE THIS AMENDMENT AGREEMENT WITNESSES that in consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows: 1. TERMS OF AMENDMENT 2. The Franchiser and the Franchisee shall set forth best efforts to mutually determine an appropriate location for the Franchisee’s business being operated as _________________________ (the “Franchise”). [Instruction: Insert name of Franchisee’s business.] Such location shall be in the City/Town of _____________. [Instruction and Comment: Insert location. If location is further restricted by Franchise Agreement, insert further restrictions here or in a separate schedule. If in a separate schedule, state that same is considered incorporated in this Amendment Agreement.] 3. The location shall be subject to approval by the Franchisor acting in its sole discretion [Comment: If other details (for example, the build out) are subject to Franchisor’s discretion, add here.]. The Franchisee may utilize the services of a real estate agent designated by the Franchisor to assist the Franchisee in finding locations and negotiating leases. [Comment: If Franchisee can use own real estate agent, or must use Franchisor’s, change the previous sentence to reflect applicable terms.] 4. Upon the Franchisee locating an appropriate location for the Franchise and upon approval by Franchisor regarding such location, the Franchisee and the Landlord (the “Landlord”) of such location shall enter into a lease agreement on terms and conditions to be determine by the Franchisee and the Landlord. 5. The Franchisee will enter into a lease or sublease of the location commencing on or before the scheduled opening date. The lease or sublease shall only be entered into by the Franchisee upon the following conditions being satisfied: A. the Franchisor approving the form of the lease or sublease prior to the Franchisee executing any such document. The Franchisor will not unreasonably withhold its approval to the form or terms of the proposed lease. The Franchisee shall deliver a complete copy of the proposed offer to lease or sublease, lease or sublease (in any case, the “Lease”) to the Franchisor at least _____ (___) [Instruction and Comment: Insert number of days. Must be longer than number of days in next sentence.] calendar days prior to executing it and a complete copy of such document as executed, shall be delivered to the Franchisor promptly following execution. The Franchisor shall deliver its written approval or refusal within ___ (__) [Instruction: Insert number of days.] calendar days. Failure to provide such written notice within the time period contemplated herein shall be deemed to constitute approval/disapproval [Instruction: Choose one, delete inapplicable.]. B. The Lease shall have a term and renewal term not less than ________ (___) [Instruction: Insert number of years.] years unless otherwise agreed in writing by the Franchisor in its sole discretion. However, Franchisor may not require Franchisee to enter into a lease for a term longer than the term of the Franchise Agreement, if any. C. Concurrently with executing the Lease, the Landlord, the Franchisee and the Franchisor shall execute a conditional assignment of lease in the form provided by the Franchisor (the “Conditional Assignment of Lease”). The Franchisor will prepare the Conditional Assignment of Lease but the Franchisee shall be responsible for obtaining execution of it by the Landlord. 6. The Franchisee shall not assign the Lease or sublease, as the case may be, or sublet the whole or any portion of the location or otherwise transfer or release its leasehold interest in the location during the term of this Amendment Agreement without first obtaining the prior written consent, such consent not to be unreasonably withheld, of the Franchisor and, if the Franchisor requests, assisting the Franchisor in negotiating and obtaining an assignment of the Lease or such other leasing arrangements as the Franchisor may reasonably require. 7. The Franchisee will keep the location in a clean, well maintained condition at all times, in full compliance with the Lease, the Franchise Agreement and this Amendment Agreement. The Franchisee will comply with all reasonable work orders issued by the Franchisor from time to time (the “Cash Work Orders”) and will immediately conduct repair and maintenance work to the location as required by the Cash Work Orders. IN WITNESS WHEREOF this Amendment Agreement has been duly executed by Franchisor and the Franchisee on the day and year first written above. (FRANCHISOR) Per Name: Title: I have authority to bind the Company. (FRANCHISEE) Per Name: Title: I have authority to bind the Company.
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