This is a specific arrangement between franchisor and franchisee if the lease is held in the franchisor's name when the franchisor allows the franchisee to utilise the premises to conduct the franchised operation.
Sample
"A. The Licensor and the Licensee wish to enter into the Franchise Agreement where the Licensee will become a franchisee of the Licensor and operator of ## in accordance with the terms of the Franchise Agreement.
B. The Licensor is the lessee of the Premises pursuant to the Lease.
C. The Licensor has agreed to grant to the Licensee a licence to occupy the Premises in accordance with the terms of this document to enable the Licensee to enter into the Franchise Agreement and carry on the Franchised Business from the Premises.
2. DEVELOPMENT AND FIT-OUT OF THE PREMISES
2.1 Development of Premises
The Licensor agrees to develop the Premises and have the Premises ready to open and commence the conduct of the Franchised Business within a reasonable time after the Licensor obtains possession of the Premises and all required permits and licenses.
2.2 Licensor?s Obligations
The Licensor must do or cause to be done the following with respect to development of the Premises at the sole cost of the Licensee:
(a) prepare plans and specifications for a Shop suitable for the location, configuration or other features of the Premises or as required to comply with all applicable laws, regulations, building codes, permit requirements and lease requirements and restrictions;
(b) obtain all required building, utility, health, sign and business permits and licenses and any other required permits and licenses;
(c) construct all required improvements to the Premises and decorate the Premises; and
(d) purchase and install all fixtures, equipment and signs and the opening merchandise inventory."
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Licence agreement to use premises to conduct franchise operation
