has opened for business . After that point in time , the franchisee generally has no right to request a change in the Franchise Agreement expiration date .
Due to the increase in franchisees negotiating changes to their lease expiration dates in connection with obtaining relief from their landlord , limiting this “ lease matching ” right to only three months after a club opens was causing problems . In recognition of the influx of lease modifications due to COVID-19 , PFHQ has agreed to allow franchisees to make additional requests to change the Franchise Agreement expiration date to match up with the new lease expiration dates . Specifically , PFHQ has said that it will agree to extend the Franchise Agreement for up to nine months or shorten the term by up to two years to match a modified lease extension . In addition , PFHQ has said that it will review any requests that fall outside of that window ( i . e ., extensions of more than nine months or reductions of more than two years ) on a case-by-case basis .
To make the request , PFHQ has created a new form , titled “ COVID-19 Request for Lease-Matching Term Modification .” The form should be available on FRM , but any franchisees with a question about obtaining the form or whether they qualify for the lease matching should reach out to Erich Melsheimer at PFHQ .
Again , whether it be in connection with the opening of a new club or the modification of a lease expiration date due to rent relief , franchisees should be mindful of the opportunities they have to match their Franchise Agreement expiration date to the expiration of their lease and take full advantage of this opportunity .
If a franchisee has a question about their lease matching rights , or any other issue related to their Franchise Agreement or
PFHQ has said that it will agree to extend the Franchise Agreement for up to nine months or shorten the term by up to two years to match a modified lease extension .
relationship with PFHQ , please feel free to reach out to me or any member of the PFIFC Board of Directors . Otherwise , I hope you are all healthy , safe and that your businesses are open ! G
J . Mark Dady is an attorney and the managing partner of Dady & Gardner , P . A . His practice is focused on the representation of franchisees , dealers , and distributors located throughout the United States . For more information on Mark Dady and Dady & Gardner , P . A ., please visit www . dadygardner . com ; call 612-359-5488 ; or send an email to mdady @ dadygardner . com .
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GearedUp | 2020 Issue 3
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