Franchise Site Selection Addendum

FRANCHISE SITE SELECTION ADDENDUM

PARTIES

THIS SITE SELECTION ADDENDUM (this "Addendum") is made as of [DATE] and is incorporated into and made part of the Franchise Agreement dated [AGREEMENT_DATE] (the "Franchise Agreement") between:

FRANCHISOR: [FRANCHISOR_NAME] ("Franchisor")

FRANCHISEE: [FRANCHISEE_NAME] ("Franchisee")

RECITALS

A. Franchisee has entered into the Franchise Agreement for a [FRANCHISE_TRADE_NAME] franchise.

B. As of the date of the Franchise Agreement, a specific site has not been selected for the Franchised Business.

C. This Addendum sets forth the site selection process, criteria, and deadlines.

1. SITE SELECTION PROCESS

1.1 Franchisee Responsibility

Franchisee is solely responsible for locating, evaluating, and securing a site for the Franchised Business that meets Franchisor's site selection criteria.

1.2 Site Selection Deadline

Franchisee must identify and submit a proposed site to Franchisor for approval within [SITE_SELECTION_DAYS] days from the date of the Franchise Agreement.

Site Selection Deadline: [DEADLINE_DATE]

1.3 Extension

Franchisor may, in its sole discretion, grant one extension of up to [EXTENSION_DAYS] days upon Franchisee's written request and payment of an extension fee of $[EXTENSION_FEE].

2. SITE CRITERIA

2.1 General Requirements

The proposed site must meet the following minimum criteria:

Location Type:
☐ Inline retail space
☐ Endcap retail space
☐ Freestanding building
☐ Shopping center/mall
☐ Office building
☐ Other: _________________________________

Size Requirements:

• Minimum square footage: __________ sq. ft.
• Maximum square footage: __________ sq. ft.
• Preferred square footage: __________ sq. ft.

Frontage and Visibility:
☐ Minimum frontage: __________ linear feet
☐ Street-level visibility required
☐ Signage visibility requirements: _________________________________

2.2 Demographic Requirements

2.3 Site Characteristics

Required:
☐ Adequate parking: minimum _____ spaces
☐ ADA accessibility
☐ Proper zoning for intended use
☐ Adequate utilities (electric, water, gas, HVAC)
☐ Appropriate ceiling height: minimum _____ feet
☐ Adequate storage area

Preferred:
☐ Proximity to complementary businesses
☐ Co-tenancy with: _________________________________
☐ Drive-through capability (if applicable)
☐ Outdoor seating area (if applicable)

2.4 Prohibited Locations

The following locations are prohibited:
☐ Within [X] miles of existing [FRANCHISE_TRADE_NAME] location
☐ Food courts (unless specifically approved)
☐ Second floor or above (unless specifically approved)
☐ Locations with restricted signage
☐ Locations requiring excessive buildout costs
☐ Other: _________________________________

3. SITE SUBMISSION REQUIREMENTS

3.1 Required Information

For each proposed site, Franchisee must submit:

☐ Complete Site Evaluation Form (Exhibit A)
☐ Site photographs (exterior, interior, signage locations)
☐ Site map showing location within trade area
☐ Demographic report from approved provider
☐ Traffic count data
☐ Proposed lease terms or letter of intent
☐ Landlord information
☐ Zoning verification
☐ Preliminary floor plan
☐ Competition map showing competitors within [X] miles
☐ List of co-tenants (for shopping centers)
☐ Estimated buildout costs

3.2 Submission Method

Submit all site information to:

[SITE_APPROVAL_CONTACT]
[FRANCHISOR_NAME]
[ADDRESS]
Email: [EMAIL]

4. FRANCHISOR'S REVIEW AND APPROVAL

4.1 Review Period

Franchisor will review submitted site information and notify Franchisee of approval or disapproval within [REVIEW_DAYS] business days after receipt of all required information.

4.2 Site Visit

☐ Franchisor will conduct a site visit before approval
☐ Site visit fee: $[SITE_VISIT_FEE] (payable by Franchisee)
☐ Site visit at Franchisor's discretion

4.3 Approval Criteria

Franchisor's approval will be based on:

• Compliance with site criteria
• Demographic analysis
• Competitive analysis
• Visibility and accessibility
• Lease terms
• Buildout feasibility
• Overall market potential

4.4 Conditional Approval

Franchisor may grant conditional approval subject to:

• Lease modifications
• Landlord work requirements
• Buildout modifications
• Other conditions: _________________________________

4.5 Disapproval

If Franchisor disapproves a proposed site, Franchisor will provide written notice stating the reason(s) for disapproval. Franchisee may submit additional sites for consideration within the Site Selection Deadline.

5. FRANCHISOR'S ASSISTANCE

5.1 Site Selection Assistance

Franchisor will provide the following assistance:

☐ Site selection criteria and guidelines
☐ Approved demographic report providers
☐ Review of proposed sites
☐ Site visits (fee may apply)
☐ Lease review and comments
☐ Introduction to preferred real estate brokers (optional)

5.2 Limitation

Franchisor's approval of a site is not a warranty, guarantee, or representation that the site will be successful or profitable. Franchisor's approval indicates only that the site meets minimum criteria and, in Franchisor's judgment, is consistent with System standards.

5.3 Franchisee's Independent Judgment

Franchisee acknowledges that:

• Franchisee has conducted independent investigation of the proposed site;
• Franchisee is not relying solely on Franchisor's approval;
• Franchisee has evaluated the site's potential based on its own analysis;
• Site selection is ultimately Franchisee's decision and responsibility.

6. APPROVED LOCATION

6.1 Designation of Approved Location

Upon Franchisor's written approval, the following shall be the Approved Location for the Franchised Business:

Approved Location:
Address: _________________________________
City, State, ZIP: _________________________________
Square Footage: _________________________________
Approval Date: _________________________________

6.2 Amendment to Franchise Agreement

Upon designation of the Approved Location, Exhibit A to the Franchise Agreement shall be amended to reflect the Approved Location.

7. LEASE REQUIREMENTS

7.1 Lease Review

Before executing any lease for the Approved Location, Franchisee must submit the proposed lease to Franchisor for review. Franchisor will provide comments within [LEASE_REVIEW_DAYS] business days.

7.2 Required Lease Provisions

The lease must contain the following provisions (or Franchisee must obtain landlord's separate agreement):

☐ Term: Lease term must extend through the initial term of the Franchise Agreement, with renewal options extending through any renewal terms.

☐ Use Clause: Landlord acknowledges that the premises will be operated as a [FRANCHISE_TRADE_NAME] business.

☐ Signage Rights: Landlord approves signage in accordance with Franchisor's standards.

☐ Assignment: Landlord consents to assignment of the lease to Franchisor or its designee upon termination of the Franchise Agreement.

☐ Notice to Franchisor: Landlord agrees to provide Franchisor with copies of any default notices.

☐ Right to Cure: Franchisor has the right (but not obligation) to cure Franchisee's defaults under the lease.

☐ Remodel Rights: Franchisee has the right to remodel the premises as required by Franchisor.

☐ Hours of Operation: No restrictions preventing required hours of operation.

7.3 Collateral Assignment of Lease

Franchisee shall execute Franchisor's standard Collateral Assignment of Lease, attached as Exhibit B.

8. FAILURE TO OBTAIN SITE

8.1 Consequences

If Franchisee fails to obtain Franchisor's approval of a site within the Site Selection Deadline (including any extension):

☐ Option A: Franchisor may terminate the Franchise Agreement, and:

• Franchisee shall forfeit a portion of the Initial Franchise Fee equal to $[FORFEITURE_AMOUNT];
• The balance of the Initial Franchise Fee shall be refunded to Franchisee; and
• Franchisee shall have no further rights under the Franchise Agreement.

☐ Option B: Franchisor may terminate the Franchise Agreement, and:

• The entire Initial Franchise Fee shall be forfeited; and
• Franchisee shall have no further rights under the Franchise Agreement.

☐ Option C: Other: _________________________________

8.2 Franchisor's Rights

Franchisor reserves the right to approve any proposed site for its own use or for another franchisee if Franchisee fails to secure the site within a reasonable time.

9. DEVELOPMENT TIMELINE

Upon approval of the Approved Location, the following timeline shall apply:

10. GENERAL PROVISIONS

10.1 Incorporation

This Addendum is incorporated into and made part of the Franchise Agreement. In the event of any conflict, this Addendum shall control with respect to site selection matters.

10.2 Definitions

Capitalized terms not defined herein shall have the meanings set forth in the Franchise Agreement.

10.3 Counterparts

This Addendum may be executed in counterparts.

SIGNATURES

FRANCHISOR:

[FRANCHISOR_NAME]

FRANCHISEE:

[FRANCHISEE_NAME]

EXHIBIT A: SITE EVALUATION FORM

[Attach Site Evaluation Form]

EXHIBIT B: COLLATERAL ASSIGNMENT OF LEASE

[Attach Collateral Assignment of Lease]

NOTICE: This template is provided for informational purposes only and does not constitute legal advice. Site selection is a critical decision that can significantly impact franchise success. Consult qualified franchise counsel and real estate professionals before making site selection decisions.