a letter of intent from a potential franchisee to a franchisor is a formal communication indicating interest in joining the franchise business. it is with great interest that i am writing this letter to apply as a franchisee of the [name of the franchise] franchise. i am writing to notify you that i accept the terms on franchise pricing and the payment structure that are mentioned in [your website / a brochure / a trade show], and i am eager to become a franchisee.
i request you to kindly schedule a personal meeting to discuss the franchise application and other needed facts in greater detail. this letter of intent for franchise application is a brief but straightforward approach that does not require embellishment and lengthy message content. it is important that within the message, the lines of communication are available for the franchise owner to verify the application — which is why the presence of a phone number and email address signifies willingness to engage in a conversation. if you find this article helpful, consider donating to pinoy negosyo to help maintain content and server expenses.
these clauses are important to negotiate up front in your letter of intent so that you don’t waste your time, resources, and give up your leverage negotiating them when you get to the lease. the letter of intent, abbreviated as loi, is considered to be a gentlemen’s agreement in that its non-binding, but it represents a true interest in moving forward with a real estate transaction. in most cases the landlord or broker will quote you a rent rate in price per square foot. if you want to figure out your monthly rent payment simply divide that number by 12. of course, you want the rent to be as low as possible, but a reasonable rate hovers around 10% of occupancy. the bigger issue surrounding rent is how the space will be tendered to you. in this clause of the loi, you are asking the landlord to agree to your specific use of the space.
this is important because while you may be in the clear from a zoning perspective with the municipality, that does not guarantee that your use in specificity is allowed by the landlord or the landlords other tenants as bound to him by other leases. you’d like to believe that your rent should start on the same day your lease starts, and you’d like that to be the first day you open for business. rent commencement is the day that your rent starts. one way to do that is to negotiate your exclusivity in the loi. now a savvy landlord will initially object to this, but for the right rent rate or if the landlord wants you out of the center, he landlord could let this happen. so you could potentially get the landlord to relax on the length of the guaranty or you could propose a burn-down of the guaranty. the advantage you have if you’re a franchisee, is that your franchisor will be able to provide you with a lot of this language.
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the letter of intent confirms the parties’ understanding of the terms of the transaction and provides a guide for the attorneys who draft the final agreements. there are many reasons why a letter of intent should be used in franchise transactions. some lenders require a letter of intent before approving a loan. the letter of intent is a practical tool for due diligence in that it provides, among things, an additional opportunity to assess whether the many franchise attorneys use a template letter of intent (“loi”) when handling a small business purchase or sale, but where a franchise letters. sample letter of intent for franchise application. if you are looking for a state-specific form, browse the us legal forms website and search for, letter to franchise owner, letter to franchise owner, franchise request letter sample pdf, how to approach a company for franchise, franchise request letter sample doc, franchise inquiry, franchise letter, sample letter of intent to renew franchise, letter of intent jollibee, franchisee meaning, letter of intent to customer.
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