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Business Transactions
- Buying a Gas Station or Car Wash you Need Landlord Consent - No Matter What the Lease Says
- $22 Million New York City Entrepreneur Fund Created for Starting Businesses in New York City
- Small Business Commercial Lease Agreements in New York: Limiting your Personal Guaranty may Not be Enough
- S Corp, C Corp, LLC?
- Be Aware of Forum Selection Clauses in Vendor Agreements
Library
Business Transactions
- The Advantages of an Asset Purchase Compared to a Stock Purchase
- Factors to Consider when Buying a Gas Station
- The Importance of a "Financing Contingency" when Buying a Business
- The Importance of a "Non-Compete" when Buying a Business
- The Importance of "Sales Tax Notifications" when Buying a Business in New York
Q: What is a Lease Agreement "Good Guy Guaranty".
A: A "good guy" guaranty is a "limited" personal guaranty to a commercial lease agreement. In the typical small business lease agreement the parties involved are (a) the landlord, (b) the tenant who is typically a corporation or limited liability company and (c) the individual shareholder / owner of the corporate tenant. Since most small businesses do not possess substantial assets or a complete earnings track record most commercial landlords require their small business lease agreements to be guaranteed by the "individual" shareholder / owner of the corporate tenant.
A "good guy guarantee" refers to the limited personal guarantee of the corporate tenant's individual owner. Although the form of this guarantee is subject to variation it provides for the termination of the "individual personal guarantee" upon the satisfaction of the following "good guy" acts: (a) providing the landlord with pre-notice of the termination / breach of the lease agreement, (b) surrender of the business premises in good and proper condition, (c) satisfaction and payment of all past due rent and additional rent obligations.
The benefit of a "good guy guarantee" is that an individual guarantor will not be liable for "future lost rent" in instances involving the early termination / breach of the lease agreement.
Charles N. Internicola, is a business attorney, author and speaker who represents individuals, entrepreneurs and established business owners in New York and New Jersey business transactions. Charles is the author of "An Entrepreneurs Guide to Purchasing a Business" and he is the publisher of the "New York Franchise Law Blog". If you are buying or selling a business in New York or New Jersey, purchasing a franchise or involved in a license or lease transaction Contact Charles Internicola to discuss the dedicated and precise legal representation that he provides to his clients and the steps that he will take to protect your business interests.
IMPORTANT DISCLAIMER: The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. The content of this website is subject to the Copyright of its author, Charles N. Internicola, Esq.
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