5 Hidden Clauses That Can Destroy Your Business

Commercial leases are often 50+ pages long. Landlords count on you skimming the fine print. Here are the 5 most dangerous clauses our AI detects regularly.

1. The "Relocation" Clause

This allows the landlord to move your business to a different suite in the building at their discretion. Imagine spending $50k building out a beautiful storefront, only to be forced to move to a dark back corner 6 months later.

Fix: Demand a "No Relocation" clause, or require the landlord to pay 100% of moving and renovation costs.

2. Default & Acceleration

If you miss a rent payment, some leases allow the landlord to demand the entire remaining value of the lease immediately. If you have 3 years left on a $4k/month lease, you could instantly owe $144,000.

Fix: Ensure you have a "Cure Period" (e.g., 10 days) to fix any missed payments before default triggers.

3. Unlimited Personal Guarantee

Most landlords require a personal guarantee for small businesses. This means if the business fails, they can come after your house and car.

Fix: Negotiate a "Burning" or "Rolling" guarantee that expires after 1-2 years of on-time payments.

4. HVAC Replacement

In a standard NNN lease, tenants pay for maintenance. But sneaky landlords will slip in "replacement" too. If the building's 20-year-old AC unit dies, you shouldn't have to buy them a new one.

Fix: Cap your HVAC liability to maintenance contracts only.

5. Percentage Rent

Retail leases sometimes require you to pay a % of your gross sales on top of rent. If you succeed, the landlord taxes your success.

Fix: Avoid this if possible, or set a high "Breakpoint" for sales before it kicks in.

Conclusion

Never sign a lease without scanning it first. BizLeaseCheck can find these 5 clauses (and 20 others) in seconds.