Publications: distribution agreements

Projecting rent expenses is one of the largest concerns of the tenants while negotiating lease agreements. Reasonable tenants would not want to “handcuff” their landlords in order to allow them to attract new customers and operate building effectively. But at the same time tenants would wish to control unanticipated rent escalation and skyrocketing financial liabilities as well as to minimize their exposure to surprising, improper and unreasonably increased invoices.

            However, despite being aware of the necessity to accurately formulate rent provisions, it turns out that when it comes to negotiation many tenants become convinced that fixing Read More

Can a creditor/lender secure loans to a franchisee, and a licensee with royalty payments from the franchise and license agreements or with an equity interest in the debtor LLC?

As explained below, the royalty payments cannot serve as security for a loan to the Debtor LLCs because these payments are being made by the Debtor LLCs to the franchisor and the licensor. Only property/ revenue belonging to the Debtor (e.g., accounts receivables, not accounts payable) can serve as collateral/security. As for the equity interest in the Debtor LLCs, this may be possible, but Read More