Practice Areas
Blog 
Business Transactions
- Product Labeling Law: ANSI, UL, CPSC - Some Thoughts for Product Importers and Distributors
- Buying a Car Wash In NY or NJ: Some Thoughts for Purchasers
- 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
Legal News
- "Must Use" Online Resources When Buying a Business or Franchise...
Posted on 1/13/2011
Library
Business Transactions
- CPSC Reporting Requirements: Knowing When to Report a Product Defect
- Three Things You Need to Remember About Your Product Warranties
- FTC's "Environmental" Marketing Rules: What Manufacturers, Distributors and Franchisors Need to Know
- Proposition 65: Information that Product Manufacturers and Distributors Need to Know
- Prop 65 Warning Requirements for Product Manufacturers and Distributors
Initial Questions to ask about your Business Lease when Buying a Business or Franchise in New York or New Jersey
When busing a business one of the primary assets that you will be acquiring will be the seller's leasehold interests in the business location. In New York and New Jersey where real estate is expensive, rent will constitute one of your largest operating expenses and will have a direct impact on the cash flow of your new business. Critically important to your business purchase, the lease agreement to be assigned to you or newly issued by the landlord must be reviewed extensively and evaluated with your business lawyer during your due diligence investigation.When evaluating the purchase of a business, some of the initial questions that you should consider about the business lease, include:
- The remaining number of years left on the lease;
- Whether or not the landlord will consider extending the lease term;
- The fixed monthly rent charged under the lease;
- Additional monthly rent charges, such as monthly charges for property taxes, building/property maintenance, insurance and common area charges;
- Whether or not the "use clause" includes the seller's current business activities and if the use clause is consistent with your current and future plans for the business;
- If the lease is in a shopping or mall, whether or not the lease restricts and/or prohibits the landlord from leasing space to a competitor;
- In instances involving the possible existence of pre-existing and future property contamination - such as purchase transactions involving gas stations, car washes and lube centers - the landlord's responsibility to abate contamination and the possible existence of environmental contamination insurance. When leasing such property you should consider obtaining a Phase I environmental site assessment.
If timing prevents the completion of lease negotiations "prior" to the execution of the business purchase agreement, speak to your lawyer about adding a "lease contingency clause" to your purchase agreement.
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.
Click here to view our privacy policy
Search
More Information
To obtain information about our business and franchise law services complete the form below:
Charles N. Internicola, Esq.
New York, New Jersey
and Nationwide Legal Representation
1610 Richmond Road
Staten Island, NY 10304
Phone: 718. 979. 8688
Toll Free: 800. 976. 4904
Get Directions
Note:
Your information is confidential and is not used or sold for marketing purposes. We accept no duty and no representation without a written contract setting forth terms of representation.