Everyone should be careful about signing documents which impose significant monetary and non-monetary obligations. While License Agreements are for a relatively short period of time, there could be significant obligations associated with entering into a License Agreement that a Licensee may not be aware of or fully appreciate. There may be performance obligations such as the obligation to perform certain alterations to the licensed premises or to restore the licensed premises by a date certain. Licensee may also be responsible for certain utilities, which may not be billed until after the term of the License Agreement ends. The Licensee may also make assumptions that the Licensor may perform certain obligations that are not reflected in the License Agreement. While it is certainly possible (and even likely) that the Licensor will do the right thing, the Licensee would have little if any remedy should the Licensor fail to perform such obligation.
An experienced commercial real estate attorney can ensure that the Licensee will be aware of its monetary and non-monetary obligations during the term of the License Agreement and that any of Licensor’s expected obligations will be incorporated into the License Agreement.