Protect Your Interest in Opening New Store Locations
It’s common for retail tenants to agree to a percentage rent arrangement in their lease with the owner of a shopping center or strip mall. That is, the owner will reap a predetermined percentage of certain profits made by the tenant, in addition to base rent. Owners are fiercely protective of this type of income stream. It’s easy money. So they’ll try to protect their interest in percentage rent by ensuring that your profits at other locations—which they aren’t entitled to—don’t diminish what they’ll get.