Challenges in Drafting a Restaurant Exclusive Use Clause

The reasonable and typical middle ground in the struggle between the parties regarding the scope of the "exclusive" is to protect only a tenant's "core" or "primary" business. Using such an approach, if properly drafted, will allow the tenant to avoid the two-coffee-shop situation, but will still permit the landlord to lease to multiple tenants with overlapping but not fundamentally competing uses.

10 minute read April 01, 2017 at 12:03 AM
By
Stephen Levey
Challenges in Drafting a Restaurant Exclusive Use Clause

An exclusive use clause is one of the most important and heavily negotiated business issues in a shopping center lease, and therefore, it is usually negotiated by the principals or brokers in the letter of intent.

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