The franchisor compliance manual

Leasing arrangements

If a franchisee leases premises from you (or your associate) for their franchised business, you must give them a copy of the lease or agreement to lease within one month after the document is signed. You must, at the same time, provide the franchisee with the details of any incentive or financial benefit you or your associate will receive as a result of the agreement, including the name of the business providing the incentive or financial benefit.

Similarly, if a franchisee occupies premises leased by you (or your associate) without a lease, you are required to give to the franchisee either:

  • these two documents:
    1. a copy of the lease or agreement to lease
    2. details of any incentive or financial benefit you or your associate would be entitled to receive as a result of that agreement or
  • these three documents:
    1. a copy of the documents that give the franchisee the right to occupy the premises
    2. written details of the conditions of occupation
    3. details of any incentive or financial benefit you or your associate would be entitled to receive as a result of the franchisee’s right to occupy the premises.

The documents that give the franchisee the right to occupy the premises must be provided within one month after the document is signed. The other documents and details must be provided to the franchisee within one month after occupation commences.

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