Good News:  I’ve finally got a lease to negotiate and not just an LOI or an idea.

Bad News: I’ve got to think about all the issues that come along with negotiating a lease.

If you even think you can get this or any business off the ground without help from a lawyer you are kidding yourself.  It’s one thing to be able to read a lease and understand what it says (there’s plenty of legal jargon to go around); I can do that for the most part.  It’s a whole new battle to understand all the things it DOESN’T say. That’s really what you need.  The ability to connect the dots and see whats not there.

For instance:

Things not covered in the current form of my lease:

  1. If some major issue happens with the structure of my building (aka a wall falls down or a fire) I will still owe my landlord all the rent I promised to pay him for the year.  Some insurance will cover you incase of this but not all (and not mine).
  2. My landlord will pay for getting the building up to code to obtain a Certificate of Occupancy but not upkeep beyond obtaining the CoO.  You’d think it would huh?
  3. No franchise is allowed to occupy the premises (does CrossFit count as a franchise?…well that’s up to the landlord to decide)
  4. Even though we discussed that taxes would be included in the monthly rent, my lease is expressly stated as triple net.
  5. This one was particularly tricky: I negotiated 60 days rent abatement.  However in the lease it states that whatever comes first, the beginning of business operations OR 60 days shall begin the Rent Commencement Period.  Sneaky sneaky…

Much like CrossFit, the law is all about “defining terms.”  A lease is the practical application of the definition of terms.  What’s the definition of equipment? franchise? alteration? obligation? damage?

I happen to be dealing with one of the largest land owners in DC. If you have the guts to take on their gigantic army of lawyers who will fight you every step of the way, then I salute you because I sure as hell don’t.

There are certain professions that are really easy to hate on until you need one. Lawyers being chief among them.  A good lawyer can save you a tremendous amount of money (and heartache) in the long run.  Get one you trust and stick with them.