Jan
07
Is an authorization to sublease (retail space) considered a binding agreement in the state of North Carolina?
ByI 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?
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2 Comments
January 9th, 2010 at 9:44 am
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.
January 9th, 2010 at 7:53 pm
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.