Jan
07

Is an authorization to sublease (retail space) considered a binding agreement in the state of North Carolina?

By admin
retail lease

I have own a franchised retail store. My franchisor acts as the lessee, then subleases to me, the store owner.

I am looking to closed my doors due to poor store performance. I signed an authorization to sublease with with Franchisor, but never signed the actual sublease agreement. Somehow this managed to slip through the cracks. Am I liable to fulfill my lease obligations, if I closed my doors, even through I never signed the sublease agreement, but rather only the authorization to sublease?

Rent Back

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Categories : lease back

2 Comments

1

I am not a lawyer and you did not make it totally clear, but it seems like your obligation is only to the Franchisor and not the owner of the property. Of course that assumes that you were never a party to the original lease.

If the Franchisor has released you from your contract, then you would be clear.

2

You are contractually bound for anything you signed. Part of the franchise agreement may include the space even if you say you never signed the sub-lease. Contracts are binding.

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