Avoiding “Gross Sales Drop” Requirement in Exclusive

December 21, 2012
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Q: It seems like the owner of space that I’d like to rent will give me an exclusive, but I’m afraid that I’ll get this valuable right only if I agree to add a “gross sales drop” requirement. Would a gross sales drop right undermine my exclusive? If so, what arguments should I make when the owner raises this point during lease negotiations?

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