When choosing to purchase commercial property, you need to consider the possible risks involved. Buying commercial property only to realize a few years later that renting was a better option is a feeling you don’t want to have. For businesses, some of the potential risks involved when buying commercial real estate are discussed in this blog post. The property market is volatile, a trending neighborhood can lose its value for reasons such as poor maintenance and slow development. That is not all - the market is susceptible to many contingencies, including global, political and economic conditions. Of course, such factors can also work in your favor when buying commercial...

*Due to weather, this event has been rescheduled to Wednesday, June 28, 2017 from Monday, June 19, 2017.  Pop-Up Spaces: Innovative Ways to Showcase Your Art Location: NYFA, 20 Jay Street, Brooklyn, NY This event brings together Glenn D. Wright, Esq., The Wright Law Firm, P.C. and Robin Abrams, Vice Chairman, Lansco to provide tips and advice to help you navigate the complexities of pop-up spaces from a legal and real estate perspective. This event is open to the public, with a fee of $10 or $15 for attendance; RSVP required. Learn more about the event on NYFA Current. Are you an artist, collaborative, or organization that needs space for a short-term project? What are your...

      I recently received a distressed call from a beauty salon owner who had just signed a ten-year lease on a full floor of retail space on a prominent avenue in midtown Manhattan. The store was on the second floor of a small retail/office building and boasted large windows that ran almost the entire width of the space. Immediately below his store was a chain restaurant with a prominent sign above its storefront.      This particular salon owner had owned several similar businesses in the City and knew what it would take to attract walk-in clientele. Shortly after taking possession, the salon owner installed neon signs on the windows with the name of the business. As is custom...

Do you have Clients that are buying/selling restaurants? Glenn D. Wright of the Wright Law Firm, PC will be a panelist at the New York Society of Certified Public Accountants (NYSSCPA) Hospitality & Restaurant Committee Breakfast Technical Session 2016 on January 5, 2017 at 8:30 a.m. The seminar's target audiences are legal, financial and accounting professionals who advise their Clients on the all aspects of buying/selling restaurants. Certified Public Accountants seeking Specialized Knowledge (NYSED) / Specialized Knowledge (NASBA) credit should attend as well as transactional attorneys or restaurateurs interested in the intricacies and potential minefields inherent...

You have found your dream business venture to invest in and made the decision to buy. Now you have to figure out you are going to pay for the purchase of a business. There are many ways to pay for a new business, here is are some of the most common: having cash at closing, seller financing, or contingent payments and securities issued by the purchaser. Having cash at the closing is the absolute simplest form of payment. However, the cash usually comes from a small business administration (SBA) or bank loan to fund the acquisition. Generally, the bank loan is secured by putting a blanket lien (Uniform Commercial Code or UCC filing) on all assets of the acquired business. These loan...

What to look for in well-drafted construction contracts? Many architects and contractors use the American Institute of Architects (AIA) pre-printed, “fill in the blank” form contracts. Although these AIA forms are a good, fundamental starting point, most attorneys draft extensive riders to supplement them. The riders are frequently proposed by the owner’s lawyer because the AIA form is drafted to favor the interests of the architect or contractor. Some contractors on small projects may forgo formal construction contracts altogether and give the owner an estimate, payment schedule and a brief description of the scope of work. Although this gives the contractor flexibility to figure...

There are several important issues to consider when buying or selling Limited Liability Company membership interests. There are usually provisions in operating agreements that address the process involved in transferring a member's interest. What type of provisions? For starters, they require the member to provide notice of the transfer to the other members. In addition, many operating agreements include a right of first refusal. This right gives the company the option to buy back the membership interests on the same terms as those of the proposed sale to a third party. Many LLC operating agreements contain restrictions that only permit a sale with unanimous consent of all the...

If you are having problems with a general contractor and want to hire a different one for the project; you should tread carefully. Regardless as to how justified you feel in doing so, always look carefully at the reasons why you want to fire your contractor. Terminating a general contractor should only be done when there is a well-documented history of conduct that is clearly in violation of their duties and responsibilities pursuant to the contract. If that is not the case, you may be sued for wrongful termination and have to pay large monetary damages. You should always consult a construction lawyer before you fire your contractor. A recent case involved a building owner...

  Given that the long-overheated office market in Manhattan is starting to cool, commercial leases are beginning to get somewhat more tenant-friendly. One way that landlords are sweetening deals for tenants is to give them a lease option to expand in the same building as their office needs grow. This is especially popular in "silicon alley" in the Flatiron neighborhood. Westbrook Partners recently entered into such a deal with a tech company giving it the right to double its square footage at a later date. The ability to grow without uprooting their location is very valuable to start-up tenants. These firms are attempting to establish themselves as stable, mature companies. They...

Many people do not consult a lawyer before buying a franchise and signing a Franchise Disclosure Document (“FDD”).  Prospective franchisees are frequently told by the franchisor that the FDD is not negotiable. Financial Disclosure Documents are in fact somewhat negotiable and a good franchise lawyer can revise the language and obtain some concessions. More importantly, an experienced franchise lawyer can “read between the lines” of the FDD, evaluate the franchise and assess what exactly the franchisee is buying. Very few franchisors provide any representations about their financial performance.  When they do, they disclose the average gross sales of their existing franchisees....