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NO DUMB QUESTIONS -- Is it Possible to Get a
'Product Exclusivity' Clause in My Lease?
Answer: Yes, it is possible but not as likely as you may think if your restaurant concept is a new startup. Landlords and real estate brokers who specialize in restaurants tell me that there are some important things to remember when you request exclusivity for your product within a particular shopping center or development. Remember that the broader your exclusivity request, the more disappointed you will be. As an example, if your start-up restaurant is a pizza-by-the-slice counter-service restaurant within a strip center, the landlord will more than likely deny your request to be the exclusive pizza-serving restaurant. This is because that would not allow him to lease to a full-service Italian restaurant that might offer pizza as a part of their menu. However, you might be able to receive an exclusivity clause that restricts other restaurants to only offer pizza if it represents a small percentage (perhaps 10 percent to 20 percent) of their food sales. Neighborhood bars and sportsbars might ask for exclusivity on liquor products, and it is reasonable as long as it doesn't disallow the landlord from being able to lease to a full-service restaurant that offers liquor, beer and wine. They would typically define a restaurant as one that offers liquor products as an accessory to food or perhaps one that maintains liquor sales at or below 30 percent to 40 percent of total sales. I have seen similar things done with sandwich shops, burger restaurants and others.
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