July 15, 2015
Say you decide to open a chicken restaurant selling your secret family recipe chicken. You find the perfect location, sign the lease, move in, and open for business. Sales are brisk when a few weeks later you see a construction crew building out the space next to you. Your landlord has leased the space to a fast casual restaurant specializing in chicken sandwiches. A month later, the space across the parking lot is being built out for a restaurant whose signature menu item is roasted chicken. Destroyed by your landlord’s leasing scheme and an inability to compete with such market saturation, you close your doors, lose your investment, and leave the landlord with a defaulted lease and empty space.

How could this have been avoided? The answer is an exclusivity provision in your lease which anticipates and protects you from potential problems.

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