Are you a landlord to a Church’s or Shoney’s franchisee?
Anyone else have a Church’s or Shoney’s franchise owner in default on rent? I’ve been told that it’s happening with many of the stores owned by a particular franchise holder.
[{"id": "hlu8sa6", "text": "That sucks. I handle tax appeals for a few different franchises with varied owners, most of whom lease NNN and are therefore responsible for the taxes. I've only seen a delinquent lease once. It is awkward to tell the taxing authority that the building is worth less because the franchisee (my client) isn't paying their lease. As you can guess, that argument does not go very far. \n\nIs there anything in the lease that will allow you to address the issue with the franchise licensing the name? It isn't a very good look.", "replies": [{"id": "hlvluyr", "text": "Thank You. I will check.", "replies": [], "depth": 2}, {"id": "hlvmbko", "text": "Section 8.04. Franchisor Requirements. In addition to the requirements set forth in this Lease, Lessee, in its use, occupancy and maintenance of the Property, shall comply with all requirements of its Franchise Agreement. Lessee hereby consents to Lessor providing information it obtains to Franchisor in connection with an Event of Default by Lessee under this Lease, and likewise, upon an Event of Default by Lessee under this Lease, Lessee consents to Lessor obtaining from Franchisor information which Franchisor receives relating to Lessee\u2019s operation of its business on the Property.", "replies": [{"id": "hmpjz1z", "text": "I'm not an attorney, but it looks like you may have *some* recourse, if only for information that will make it easier to force payment. I would reach out to the franchisor and begin the process of eviction, even if you don't want to follow through. Your value will likely be affected if the tenant must vacate. On the other hand, maybe the franchisor will make the guy pay? \n\nMaybe you're about to find out the guy is rolling in cash. It would certainly make a lawsuit easier if you're privy to the guy's financials. \n\nGood luck. I would love to know what happens.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]