Pop Up License Agreement
As soon as the parties decide what type of agreement will have the best effect of their respective objectives for the property, it is essential that the resulting agreement be drafted in such a way that the intention of the parties is clearly and properly communicated. In the absence of good drafting, a “licence” may be interpreted as a lease agreement. As in many areas of the law, the mere use of the title “licensing agreement” on the draft document will not magically pass through this document with all the necessary provisions to create such an agreement. On the contrary, licences and leases require a certain language to consolidate their intention. The essential difference between licences and leases depends on the language used in the agreement to use and control the property. A duly established tenancy agreement grants the tenant a leasehold, regardless of the duration, with the landlord granting the tenant the right to own and enjoy the property, often exclusively and for a fixed term. On the other hand, a license is not exclusive and does not grant the tenant such property interests or other interests in the property. On the contrary, a license is essentially the right to access the property and use it for specific purposes. Therefore, a licensing agreement will allow the owner to control access and use of the property only an average lease. Renewal options: If you are interested in a possible extension, try to negotiate the terms of renewal when entering the license, for example.
B a renewal option for a certain fee for a specified additional period. Otherwise, if the site is a success, the licensee may be at the mercy of the licensee at the end of the license. Signage: Be clear about expectations in terms of signage. Ideally, signage should be approved in advance by the licensee as part of the licence. Licensee should ensure that their plans for signs, banners, LED displays, sidewalk designs or other ornaments comply with the license and ownership/cooperation documents (if any). In addition, the licensee may need the licensee to cooperate and assist in all necessary approvals of the property and cooperation board and all municipal authorities (for example. B, Landmarks Commission). Most short-term leases require the tenant to acquire and maintain full power and to take out general commercial and liability insurance with a licensed agency covering the tenant`s premises and use.
The limits of general economic responsibility should not be less than $1 million per person and $2 million per accident. Responsibility for property damage should not be less than $1 million, and these limits do not include a deductible. Prohibition of contracts: the agreement being a license for a pop-up store and not a long-term rental, the taker is generally not allowed to allocate or sublet part of the disc space. Such a prohibited assignment may constitute a contractual delay that obliges the licensee to hand over the premises to the lessor.