RFG still hold's the 'head lease' for a number of franchise outlets. With a very tough QSR retail industry, some of those head leases could prove problematic.
In basic English, head leases, means RFG signs the lease directly with the landlord, then 'sub-leases' the premises to the franchisee.
But if sh**t goes to the fan, the primary leasee (ie RFG with the head lease) is the one on the legal hook. The head leasee can try to sue the sub-leasee for losses, but good luck with that.
This is the risk.
Watching, waiting... but not re-entering yet. Macro conditions still very very tough in hospitality land.
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