1. Unlimited Personal Guarantees
A personal guarantee ties your personal assets (home, savings, car) to the lease obligations. The biggest red flag is a guarantee that has no "sunset" provision—meaning you are personally liable for the entire 5 or 10-year term, even if you sell the business or close it.
2. Full Rent Acceleration
If you default on a single month's rent, some leases allow the landlord to "accelerate" all remaining rent for the entire term. This means if you have 4 years left on a $5,000/month lease, you could be sued for $240,000 immediately.
3. Uncapped CAM Operating Expenses
Common Area Maintenance (CAM) charges are pass-through costs. A major red flag is the absence of a "cap" on controllable expenses. Without a cap, your rent could spike 20% in a single year if the landlord decides to repave the parking lot or hire a new management company.
4. Relocation Clauses
This allows the landlord to move your business to a different suite in the building at their discretion. For retail businesses, this can be a death sentence if you are moved from a high-visibility corner to the back of the building.
5. Sole Discretion on Assignments
If you want to sell your business, you need to "assign" the lease to the buyer. If the lease says the landlord can withhold consent in their "sole and absolute discretion," they can effectively block you from selling your business.
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