Legal Question in Business Law in California

End of August, 2011? That's pretty soon! You need to have a preliminary chat with the landlord right away. Cover lease renewal/extension first, then inquire about transferring the extended lease to a new owner/tenant, or possibly subletting. You won't get much for the business unless it comes with a reasonably long lease.

I should probably add a reminder to check your lease for any provisions affecting renewal, and any affecting assignment and sublease. Sometimes commercial leases have 90-day or even longer reneal notice periods in order to exercise a right to extend.

As a Franchise Attorney I add the following. If you're really leaving the country, and don't have a solid buyer lined up, you need to consider whether it's worthwhile to extend your lease and remain liable for the extension term. You might want to talk to your landlord about an "option to renew" that doesn't obligate you but gives the landlord something worthwhile. Of course, you'd need to build in wording that deals with a buyer, if you find one. From a practical standpoint, it's virtually impossible to sell a business like yours without a lease (or lease option) in place. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation