Forums: Discussions for entrepreneurs and small business.

Hi All, I`m in the process of setting up a store that will sell licensed products.  The company I am working with says the next steps are to obtain a lease (in negotiations now).  They will be giving me a license agreement after that.  80% of my store will be this licensed product so doesn`t sound weird that they won`t give me an agreement until after I have already signed the lease?  I will be using their company name so what if I don`t agree to some of their terms and am stuck with a multiple year lease and no store to open.  Any opinions on this?

Michelle

Talk To A Lawyer ASAP!

Thanks for the reply! 

they may be trying to determine if you are truly serious.

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James Lindon, Ph.D. Patent Attorney
Lindon & Lindon, LLC
Cleveland, Ohio
Patents, Trademarks, Copyrights, Pharmacy Law, Litigation
[this is not legal advice - provided for discussion only]
Intellectual Property for the Individual and Small Business: Identify, Protect, Enforce, Defend.
"Fools rush in where angels fear to tread."
http://www.LindonLaw.com

That would make me very uncomfortable.  Suppose you sign the lease, and you can`t come to terms on an agreement with the company?  What are your options then?

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Pepper Law Group, LLC
21 E. High Street, Suite D
Somerville, NJ 08876
informationlaw.com
Now available on DVD!
The Legal Considerations of Starting an Online Business

pepper, exactly my point.  i have been talking with the company for some time and know what the basic terms are, but what if there is just something that i dont agree with or if they just flat out decide they dont want to move into the location for some reason (currently they are the ones negotiating the lease for me).  then im stuck.  is there something i can add to the lease that says, if the license agreement is not agreed upon, i can get out of the lease? 

patent, i was told, its a 99.5% done deal once i sign the lease, but i dont even like the .5% chance that they can back out.  i like everything in writing and guaranteed.  

there probably is some way to get something that approaches a guarantee if not a guarantee if both parties want it to happen.

-------------------------

James Lindon, Ph.D. Patent Attorney
Lindon & Lindon, LLC
Cleveland, Ohio
Patents, Trademarks, Copyrights, Pharmacy Law, Litigation
[this is not legal advice - provided for discussion only]
Intellectual Property for the Individual and Small Business: Identify, Protect, Enforce, Defend.
"Fools rush in where angels fear to tread."
http://www.LindonLaw.com

If the landlord agrees on that sort of contingency, more power to you, but I wouldn`t count on it.  Many commercial leases will have commencement dates beginning upon the date you actually start doing business, but there is usually a drop dead date when that has to begin.  My recommendation would be to push this company hard to get the contract, as you have enormous downside if you can`t.

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Pepper Law Group, LLC
21 E. High Street, Suite D
Somerville, NJ 08876
informationlaw.com
Now available on DVD!
The Legal Considerations of Starting an Online Business

patent, i was just about to ask for the same thing.. some kind of guarantee as long as we both agreed to terms, etc.  i`ll see what they say.

pepper, completely agree.. huge downside for me if they pull out.

thanks both for your help!

Does this company offer a franchise arrangement?  You securing a lease first before they allow you to sell their licensed product just doesn`t sit right with me.  Can you get this licensed product from another distributor that would be willing to work with you on better terms?  I would explore that option first before seriously considering locking myself into something I might regret.

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Seattle Gourmet Coffee
"Where Coffee Reigns"
www.seattlegourmetcoffee.com