Foreseeability of Tenant’s Denied License Put Risk on Landlord

Facts: In order to open and operate a daycare under state law, Florida daycare tenants must first sign a lease for space before applying for a license to operate the business. A daycare executed a five-year commercial lease for two store spaces in a shopping center while it applied for and waited for its license. The daycare owners executed personal guarantees of the lease. The lease stated that the tenant could use the premises “solely for the purpose of the operation of a child day care center” for up to 35 children between the ages of 6 weeks and 5 years.

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