203-661-6000

170 Mason Street, Greenwich, CT 06830

Fairfield County Sale and Leaseback Attorneys

New York Sale and Leaseback Franchise Attorneys

Franchise Lawyers in Metro New York for Leaseback Transactions

At Ivey, Barnum & O'Mara, LLC, our experienced attorneys understand that running a franchise location or multiple locations requires significant operating capital. When unexpected downturns occur or other factors cause a franchisee's resources to run low, he or she may have several options for finding more money. In some cases, a loan might be appropriate, but a loan is not always the best choice. Depending on the circumstances, a sale and leaseback transaction might allow you to obtain the capital you need without taking on additional debt.

What Is a Leaseback?

A sale and leaseback transaction, sometimes shortened to just a "leaseback," is an arrangement in which a business owner sells the property on which a business is situated but not the business itself. After the sale, the business owner then enters into a lease agreement with the new property owner so that the business can continue to operate. As a result, the business owner can enjoy an influx of capital while avoiding taking out a new loan.

Leaseback deals are gaining popularity in the United States, particularly in the restaurant and hospitality industry, but they can be negotiated in other commercial sectors as well. Such transactions are fairly straightforward when there are only two parties involved. When a third party, such as a franchisor, is part of the equation, however, the deal can quickly become much more complicated.

Franchisor Rights in a Sale and Leaseback

If you are a franchisee considering a leaseback to generate additional capital, it is important to review the terms of your franchise agreement. It is not uncommon for a franchise agreement to give the franchisor the right of first refusal for a sale and leaseback offer. If the right of first refusal applies, it means you must offer the franchisor the opportunity to buy the property before you look for another buyer. Your franchise contract may also contain other provisions that address the rights of the franchisor in a leaseback transaction, and an experienced franchise lawyer can help you understand what will need to be done.

Completing the Transaction

At Ivey, Barnum & O'Mara, LLC, we are equipped to assist you with all aspects of a sale and leaseback transaction. We will work with you in negotiating the terms of the sale, as well as the terms of the subsequent lease agreement. Our lawyers will also ensure that the entire deal is fully compliant with provisions of your franchise agreement and any other applicable contracts. We understand that sale and leaseback deals can be extremely complex, but we are committed to making the process as simple and efficient as possible for you. Our goal is to get you the capital you need to run your business while protecting its long-term sustainability.

Speak with a Franchise Lawyer Today

If you have additional questions about sale and leaseback transactions or how such an arrangement could help your franchise, contact our office. Call 203-661-6000 to schedule a free consultation with a member of our team today. The Franchise Department of Ivey, Barnum & O'Mara, LLC serves clients in Fairfield County, Westchester County, and the Metro New York region.

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