Site Selection Addendum
Drafts an addendum to an existing franchise real estate agreement establishing objective site selection criteria, a sequential approval process, and binding conditions precedent.
Prerequisites
- Underlying agreement — executed copy with defined terms, party designations, execution date, prior amendments
- Party information — exact legal names, entity types, formation states, addresses matching base contract
- Business requirements — intended use, operational needs, expansion plans, demographics
- Site preferences — geographic targets, square footage range, physical specs, infrastructure needs
- Transaction context — prior correspondence, discussed criteria, deadlines, financial parameters
Quick Start
- Gather underlying agreement, party details, and site requirements.
- Draft addendum sections in order: Preamble → Recitals → Criteria → Process → Conditions → Reps → Economics → Dispute Resolution → Boilerplate.
- Mirror all defined terms and formatting from the base agreement.
- Flag approval standard (sole discretion vs. reasonableness) for client decision.
- Verify cross-references, defined term consistency, and numbering before finalizing.
Output Structure
1. Preamble & Parties
- Match party names, entity types, and addresses exactly as in underlying agreement
- Include guarantors, property managers, or affiliates if relevant
- Verify signatory authority for entity parties
2. Recitals
| Element |
Content |
| Agreement reference |
Full title, execution date, all parties as designated |
| Purpose |
Site selection matters not addressed in base contract |
| Business context |
Operational needs, market factors justifying criteria |
| Prior amendments |
Reference prior amendments in sequence |
3. Site Selection Criteria
Draft objective, measurable standards:
| Category |
Specifications |
| Geography |
Cities, submarkets, corridors; proximity to highways, transit, customer concentrations |
| Size |
Min/max square footage with variance flexibility |
| Physical |
Ceiling height, column spacing, floor load, loading docks, truck court, parking ratios |
| Infrastructure |
Power capacity, HVAC, telecom |
| Zoning |
Permitted use alignment; as-of-right vs. CUP/variance willingness |
| Visibility/Access |
ADA compliance, signage, thoroughfare visibility, co-tenancy |
4. Selection Process & Timeline
Sequential process with concrete deadlines:
- Site identification — who may propose sites (landlord/seller, tenant/buyer, or both)
- Proposal requirements — legal description, survey, preliminary title, rent/price terms, criteria compliance
- Submission deadline — [30/60] days from effective date
- Evaluation period — [X] business days to approve, reject, or request information
- Approval standard — sole discretion / reasonableness / articulated grounds
- Final selection deadline — whether time is of the essence
- Failure consequences — termination rights, extension options, liquidated damages
Include inspection provisions: access rights, scope, notice, owner presence, feasibility study cost allocation.
5. Conditions Precedent
For each: specify responsible party, expense allocation, deadline, and failure consequences.
| Condition |
Key Terms |
| Environmental |
Phase I ESA timeline, acceptability standards, Phase II trigger, remediation costs |
| Property condition |
Systems/structural/roofing/parking inspection; acceptable standard or repair/credit |
| Survey |
ALTA survey, required items, encroachment/boundary resolution |
| Title |
Commitment timeline, acceptable standard, defect cure, permitted exceptions |
| Financing |
Loan amount, rate parameters, commitment deadline, appraisal, failure consequences |
| Governmental |
Zoning verification, special use permits, CO, building permits |
6. Representations & Warranties
Property owner represents:
- Good and marketable title (subject to permitted exceptions)
- No undisclosed material defects, code/zoning violations, or environmental violations
- Intended use permitted under current zoning
Tenant/buyer represents:
- Authority to execute; organizational approvals obtained
- Financial capacity to perform
Specify survival period and breach remedies (indemnification, termination, damages).
7. Economic Terms
- Rent/price adjustments based on selected site characteristics
- TI allowance or construction obligation variations by location
- Formula for final pricing if base agreement contemplated a range
- Security deposit / LOC / earnest money: amount, timing, forfeiture conditions, return terms
8. Governing Law & Dispute Resolution
- Governing law: align with underlying agreement unless site location dictates otherwise
- Resolution sequence: negotiation → mediation → arbitration/litigation
- If arbitration: administering org (AAA/JAMS), rules, arbitrator count, location
- Prevailing party fee-shifting; consent to jurisdiction; venue designation
- Consider jury trial waiver
9. Boilerplate & Signature
- Modification scope — identify base agreement provisions modified/supplemented/superseded
- Ratification — unmodified terms remain in full force
- Integration — base agreement + amendments = entire agreement
- Counterparts — electronic/facsimile signatures valid
- Amendment sequencing — number appropriately if multiple amendments exist
Signature blocks: entity name, "By:" line, printed name, title, "duly authorized" language, date. Add witness/notary lines if required by jurisdiction or if underlying agreement was notarized.
Guidelines
- Mirror all defined terms, formatting, and structure from the underlying agreement
- Do not introduce defined terms that conflict with the base agreement
- Flag provisions where party instructions conflict with base agreement terms
- Scope environmental representations carefully — avoid unqualified "clean site" warranties without factual basis
- Approval standard (sole discretion vs. reasonableness) is a key negotiation point — draft per client instruction or flag for decision
- If jurisdiction requires notarization or recording, confirm compliance
Troubleshooting
Conflicting defined terms: Cross-check every capitalized term against the base agreement glossary before introducing new definitions.
Unclear approval standard: Default to flagging for client decision rather than assuming sole discretion or reasonableness.
Missing environmental baseline: Do not draft unqualified environmental representations; require Phase I ESA results before committing to warranty language.
Multiple prior amendments: Verify amendment numbering sequence and confirm no superseded provisions are inadvertently revived.
1---2name: site-selection-addendum3description: Drafts a Site Selection Addendum for franchise real estate transactions, establishing objective site criteria, sequential approval processes, conditions precedent, and economic adjustments that modify an existing agreement. Covers geographic parameters, physical specifications, zoning, environmental due diligence, title examination, financing contingencies, and dispute resolution. Use when supplementing franchise agreements with site approval workflows, drafting site selection riders, or adding location criteria to commercial leases.4---5
6# Site Selection Addendum
7
8Drafts an addendum to an existing franchise real estate agreement establishing objective site selection criteria, a sequential approval process, and binding conditions precedent.
9
10## Prerequisites
11
121. **Underlying agreement** — executed copy with defined terms, party designations, execution date, prior amendments
132. **Party information** — exact legal names, entity types, formation states, addresses matching base contract
143. **Business requirements** — intended use, operational needs, expansion plans, demographics
154. **Site preferences** — geographic targets, square footage range, physical specs, infrastructure needs
165. **Transaction context** — prior correspondence, discussed criteria, deadlines, financial parameters
17
18## Quick Start
19
201. Gather underlying agreement, party details, and site requirements.
212. Draft addendum sections in order: Preamble → Recitals → Criteria → Process → Conditions → Reps → Economics → Dispute Resolution → Boilerplate.
223. Mirror all defined terms and formatting from the base agreement.
234. Flag approval standard (sole discretion vs. reasonableness) for client decision.
245. Verify cross-references, defined term consistency, and numbering before finalizing.
25
26## Output Structure
27
28### 1. Preamble & Parties
29
30- Match party names, entity types, and addresses **exactly** as in underlying agreement
31- Include guarantors, property managers, or affiliates if relevant
32- Verify signatory authority for entity parties
33
34### 2. Recitals
35
36| Element | Content |
37|---|---|
38| Agreement reference | Full title, execution date, all parties as designated |
39| Purpose | Site selection matters not addressed in base contract |
40| Business context | Operational needs, market factors justifying criteria |
41| Prior amendments | Reference prior amendments in sequence |
42
43### 3. Site Selection Criteria
44
45Draft objective, measurable standards:
46
47| Category | Specifications |
48|---|---|
49| **Geography** | Cities, submarkets, corridors; proximity to highways, transit, customer concentrations |
50| **Size** | Min/max square footage with variance flexibility |
51| **Physical** | Ceiling height, column spacing, floor load, loading docks, truck court, parking ratios |
52| **Infrastructure** | Power capacity, HVAC, telecom |
53| **Zoning** | Permitted use alignment; as-of-right vs. CUP/variance willingness |
54| **Visibility/Access** | ADA compliance, signage, thoroughfare visibility, co-tenancy |
55
56### 4. Selection Process & Timeline
57
58Sequential process with concrete deadlines:
59
601. **Site identification** — who may propose sites (landlord/seller, tenant/buyer, or both)
612. **Proposal requirements** — legal description, survey, preliminary title, rent/price terms, criteria compliance
623. **Submission deadline** — [30/60] days from effective date
634. **Evaluation period** — [X] business days to approve, reject, or request information
645. **Approval standard** — sole discretion / reasonableness / articulated grounds
656. **Final selection deadline** — whether time is of the essence
667. **Failure consequences** — termination rights, extension options, liquidated damages
67
68Include inspection provisions: access rights, scope, notice, owner presence, feasibility study cost allocation.
69
70### 5. Conditions Precedent
71
72For each: specify responsible party, expense allocation, deadline, and failure consequences.
73
74| Condition | Key Terms |
75|---|---|
76| **Environmental** | Phase I ESA timeline, acceptability standards, Phase II trigger, remediation costs |
77| **Property condition** | Systems/structural/roofing/parking inspection; acceptable standard or repair/credit |
78| **Survey** | ALTA survey, required items, encroachment/boundary resolution |
79| **Title** | Commitment timeline, acceptable standard, defect cure, permitted exceptions |
80| **Financing** | Loan amount, rate parameters, commitment deadline, appraisal, failure consequences |
81| **Governmental** | Zoning verification, special use permits, CO, building permits |
82
83### 6. Representations & Warranties
84
85**Property owner represents:**
86- Good and marketable title (subject to permitted exceptions)
87- No undisclosed material defects, code/zoning violations, or environmental violations
88- Intended use permitted under current zoning
89
90**Tenant/buyer represents:**
91- Authority to execute; organizational approvals obtained
92- Financial capacity to perform
93
94Specify survival period and breach remedies (indemnification, termination, damages).
95
96### 7. Economic Terms
97
98- Rent/price adjustments based on selected site characteristics
99- TI allowance or construction obligation variations by location
100- Formula for final pricing if base agreement contemplated a range
101- Security deposit / LOC / earnest money: amount, timing, forfeiture conditions, return terms
102
103### 8. Governing Law & Dispute Resolution
104
105- Governing law: align with underlying agreement unless site location dictates otherwise
106- Resolution sequence: negotiation → mediation → arbitration/litigation
107- If arbitration: administering org (AAA/JAMS), rules, arbitrator count, location
108- Prevailing party fee-shifting; consent to jurisdiction; venue designation
109- Consider jury trial waiver
110
111### 9. Boilerplate & Signature
112
113- **Modification scope** — identify base agreement provisions modified/supplemented/superseded
114- **Ratification** — unmodified terms remain in full force
115- **Integration** — base agreement + amendments = entire agreement
116- **Counterparts** — electronic/facsimile signatures valid
117- **Amendment sequencing** — number appropriately if multiple amendments exist
118
119**Signature blocks:** entity name, "By:" line, printed name, title, "duly authorized" language, date. Add witness/notary lines if required by jurisdiction or if underlying agreement was notarized.
120
121## Guidelines
122
123- Mirror all defined terms, formatting, and structure from the underlying agreement
124- Do not introduce defined terms that conflict with the base agreement
125- Flag provisions where party instructions conflict with base agreement terms
126- Scope environmental representations carefully — avoid unqualified "clean site" warranties without factual basis
127- Approval standard (sole discretion vs. reasonableness) is a key negotiation point — draft per client instruction or flag for decision
128- If jurisdiction requires notarization or recording, confirm compliance
129
130## Troubleshooting
131
132**Conflicting defined terms**: Cross-check every capitalized term against the base agreement glossary before introducing new definitions.
133
134**Unclear approval standard**: Default to flagging for client decision rather than assuming sole discretion or reasonableness.
135
136**Missing environmental baseline**: Do not draft unqualified environmental representations; require Phase I ESA results before committing to warranty language.
137
138**Multiple prior amendments**: Verify amendment numbering sequence and confirm no superseded provisions are inadvertently revived.
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