A Franchisor’s Hidden Assets.
Although it’s not on the franchisor’s balance sheet, a franchisee’s store lease can be one of the franchisor’s most valuable assets, and a source of liability if not properly handled. Franchisees often lack the resources to negotiate the best lease deal as a tenant, and if the franchisor ever exercises its takeover right, it may find itself stuck with a poorly negotiated lease that does not give the franchisor the rights and options it needs.