Expert Advice When You Need It Most

Can a strip mall owner kick a business out if it competes with another bus. in the strip because they are complaining?

Asked over 2 years ago - Springfield, IL

sister moved to a new salon to rent space for her nail business - there is another nail salon in the plaza that is now complaining and wanting to dictate when my sister can work or if she can be in that salon at all for fear she will take business away from her. My sister has an established clientelle from doing nails for 15 years and is renting space from the salon owners but the plaza owner they rent from is now saying his loyalty would be with the nail salon that was there first. The new salon has spent $10,000 in redoing the space and is open for business. What are their rights?

Flag

Save

Share with:

Attorney answers (2)

Andrew Daniel Myers

Reputation Level 20

Answered over 2 years ago. Personal Injury Lawyer in North Andover, MA.

Flag

An answer can not be given without looking at the lease for the space in which your sister is operating her nail business. Strip mall leases or mall leases or shopping center leases or whatever we want to call them are often a patchwork of agreements that are binding upon the lessees of the space. In other words, store A has exclusivity to sell widgets, and all the other leases say those persons cannot sell widgets. Sometimes there are exceptions, for example, the hardware store may be allowed to sell a limited line of widgets, but only as part of its overall stock of equipment and supplies. So, someone needs to get a copy of the lease for the space where your sister is now operating. What kind of a business is it where you sister set up her nail business? What restrictions are in the lease for the space where she is now operating? If the person who is letting her operate as a nail salon signed a lease that had restrictions against the nail business, then there could be a problem, unless the activity is not specifically prohibited.

Mark as good answer

Add comment

Arieh Mordechai Flemenbaum

Reputation Level 12

Answered over 2 years ago. Business Attorney in Chicago, IL.

Flag

I agree with my colleague - an answer can only be found by reviewing the new salon's lease. The key issues are:
1. What uses or activities are permitted or prohibited under the lease?
2. Does the lease permit the new salon to sublease or rent space to others?
- if so, are there any restrictions?
- Is the salon owner required to obtain landlord's prior (written) consent before subleasing space?
- Is the salon owner required to share the rent with the landlord? Or perhaps you can negotiate a percentage of the rent to pacify the landlord?
3. Are there any other obligations, rules and regulations that could be a problem?
Even if your sister has the right to continue renting space, the landlord could make your sister and the new salon owner's life difficult by strictly enforcing the rules and regulations that do exist in the lease. So, your sister and the salon owner had better be prepared to strictly comply with the lease to avoid a declaration of default and a possible threat of the termination of the lease.
- Also, I assume your sister is properly licensed by the state as a nail technician and has the local business licenses to conduct her nail salon business.

Assuming that the lease does not prohibit your sister's activities or restrict the new salon from subleasing space to her, the plaza owner's loyalty is immaterial - even if the nail salon that was there first had an "exclusive" in its lease with the plaza owner. Such an exclusive is between those two parties and is the plaza owner's problem.

This answer is for informational purposes only and is not intended to be legal advice nor does it establish an attorney-client relationship. You should consult a local business or commercial real estate lawyer to obtain legal advice that is tailored to your circumstances and facts. Good luck to you.

Mark as good answer

Add comment