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What are some pitfalls of buying a sale lease back type of RE like with a fast food franchisee, or a Seven Eleven type store?
Say its a pretty big franchisee wants to sell its location, but continuing leasing from new owner. This is not the franchisor and all its assets but the Franchisee. What are some pitfalls when dealing with this type of business?
Lets say the location does not do too well, of franchisee will try and get out, but they signed new lease. What recourse does this franchisee have? Will each of their locations actually be incorporated under a separate name/business? Thereby allowing the franchisee to leach off assets only from that location, and then just declare bankruptcy.