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Site Selection Risk in Franchise Leases: Why the Franchisor Approves the Site But the Franchisee Bears the Consequences

Site Selection Risk in Franchise Leases: Why the Franchisor Approves the Site But the Franchisee Bears the Consequences

Site Selection Risk in Franchise Leases: Why the Franchisor Approves the Site But the Franchisee Bears the ConsequencesRobby S. Pinnamaneni, Esq.
Published on: 12/04/2026

The franchisor approves the site. The franchisee signs a 7–10 year lease and a personal guarantee. If the location underperforms, the franchisee pays. Learn what to negotiate to protect against location risk.

Lease Risk and Exposure

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