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February 21st, 2011 at 12:43 pm
Williex. Your best way to handle this issue is with a percentage rent clause, in which the tenant would pay their base rent plus a percentage of their sales once they hit a breakpoint, I.e the clause wouldn’t kick in until their percentage rent calculation is greater than the base rent. If you are dealing with a 400+ location chain, then watch out because they will have sharks negotiating their leases, and you should make sure that you have some representation who has dealt with them before. Good luck.