Expert: John Smiley - 12/28/2008

Question
Hi, John
I'm opening a coffee stand.  The landlord just emailed me a copy of the lease and of coarse there are some things in there that we had not discussed on the phone, I can negotiate most of the issues I have except for one.  My stand is going to be set apart from the rest here as we are going to be wearing sexy clothing.  We won't be breaking any laws and it will be very tasteful.  He wrote this in the lease...The lessee is to use the modest dress uniforms by franchisor.  The first violation of this agreement will result in an informal written notice, a second will result in a formal written notice, the third and subsequent violations will result in a fine of $500.00 per violation.  Payment for the violation may be taken from lessee deposits.  My questions are...can he do this?  And if so do you have some suggestions on how to negotiate with him.  The point of going in business for myself is so I'm in control =) Thank you so much for your time, Shelli

Answer
Hi Shelli,

Has your intended uniform been made clear to the landlord?  If not, then you ought to do so immediately.  If so, then it is my take from the clause that he has added (which I have never seen in the hundreds of leases I have negotiated) that he has concerns about your staff's attire.

It needs to be made clear what the intended dress is going to be (lingerie, bikinis, etc.) and include a written description in the lease.  You need to protect yourself from the landlord imposing upon you some unwritten dress code because he doesn't agree with your business practice.

To answer your question of, "can he do this?"  Of course.  It is his building and he can stipulate any rules he wants.  Upon your signing (and thus agreeing) to the terms, you are bound by them.

Finally, I recommend this in negotiation.  You can explain to him that you are concerned about the subjectivity of "modest dress uniforms" given your intended business model.  You can express your concern that a dress code can be imposed upon you that does not fit with your business.  If he objects and says that he wouldn't do that, you can counter (and diffuse the situation) with saying that it's not him you are worried about.  You are concerned because you intend to be there for a long time and he may come to a point where a new landlord purchases the building from him.  You need to protect yourself from THAT landlord, not knowing now who it would be.  By using this tactic, you avoid making it sound personal or like you don't trust him.  And truly, you do need to protect yourself against those who do not yet own the building.  You have no idea who they will be.

It sounds like a fun place to get coffee!  Do let me know where you're located, and I'll pop in should I ever happen to be in your city!

All the best,
John