Do franchisors need to hold the lease for their franchisees' premises?

There is no legal obligation for franchisors to hold the lease for a premises occupied by their franchisees. I recommend that, for strategic sites, the franchisor holds the lease to ensure that it has control. In major shopping centres, the landlord will require the franchisor to hold the lease - they will not deal with a franchisee. However, in all other situations I recommend that the franchisor obtain legal advice about how they can maintain control over the premises without taking on direct liability to the landlord for rental payments.