Lease Negotiations in the Beer and Distillery Industry
What good is brewing equipment or a shiny new still if you have nowhere to put it? At Hop Law, our experienced attorneys can help you make the most out of your distillery or brewery lease negotiations in Minneapolis or anywhere else in the country. If you are just starting your brewery or distillery, you will probably lease your space and the best way to maintain a healthy, profitable relationship with your lessor is with a well-written lease.
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Leasing the Perfect Location
Two Varieties of Commercial Lease Agreements
Your lease will probably be one of your largest expenses, so it’s important to fully understand what you are getting and to protect yourself as much as possible. Leases are highly negotiable, but you will probably be working within the frame of a triple net lease or a gross lease.
- Triple Net – tenant pays a fixed rate, “additional rent” (usually credited towards taxes), and insurance and maintenance expenses (common area maintenance expenses (CAM))
- Gross – landlord pays all expenses associated with ownership, and the tenant pays a fixed monthly amount
Both have their advantages and disadvantages, of course, but it’s worthwhile working an experienced lawyer that can help you wade through the jargon and get you the best lease agreement possible. While examining potential locations and your lease agreement, you will also need to take zoning regulations into consideration.
Leasing the Necessary Equipment
When you are building out your first brewery or distillery, leasing your equipment might be the most cost effective way to control startup expenses. At this point, you probably know that brewing and distilling equipment is not cheap. Work with your attorney to fully understand the conditions of the lease including:
- Lease term
- Payments and taxes
- Insurance and warranties
- Cost of transportation, installation, setup, and removal
- Maintenance and repairs
Take the Next Step
Our capable attorneys can confidently guide you through your brewery or distillery lease negotiations in Minneapolis, Madison, and wherever else you are looking to start your liquor business in the United States. Our attorneys are dedicated to helping you be successful in your new venture, and we invite you to call us at 612-259-4800, or contact us online, to schedule your free consultation.
We want to help make your vision a reality. We provide comprehensive legal services for businesses in the craft beer and spirits industries.
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