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	<title>Tips - Brent Levison</title>
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	<link>https://brentlevison.com</link>
	<description>Practicing Law in Florida, New York, New Jersey &#38; Ohio</description>
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		<title>Important Franchise Lease Agreement Terms Every Franchisee Should Know</title>
		<link>https://brentlevison.com/important-franchise-lease-agreement-terms-every-franchisee-should-know/</link>
		
		<dc:creator><![CDATA[brentlevison]]></dc:creator>
		<pubDate>Wed, 15 Apr 2026 18:39:02 +0000</pubDate>
				<category><![CDATA[Tips]]></category>
		<guid isPermaLink="false">https://brentlevison.com/?p=1036</guid>

					<description><![CDATA[<p>Signing a franchise lease without understanding its key terms is one of the most costly mistakes a franchisee can make. Unlike a standard retail lease, a franchise lease involves three parties — and the terms that protect you as a franchisee are very different from those in an ordinary landlord-tenant agreement. Here is a breakdown [&#8230;]</p>
<p>The post <a href="https://brentlevison.com/important-franchise-lease-agreement-terms-every-franchisee-should-know/">Important Franchise Lease Agreement Terms Every Franchisee Should Know</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>Signing a franchise lease without understanding its key terms is one of the most costly mistakes a franchisee can make. Unlike a standard retail lease, a franchise lease involves three parties — and the terms that protect you as a franchisee are very different from those in an ordinary landlord-tenant agreement.</p>



<p>Here is a breakdown of the most important provisions to focus on before you sign.</p>



<h2 class="wp-block-heading">1. Franchisor Lease Rider Requirements</h2>



<p>Most franchisors require a lease rider or addendum that gives them specific rights in the real estate. These terms are typically non-negotiable and must be reconciled with the landlord&#8217;s standard form lease.</p>



<p>Key provisions usually include the franchisor&#8217;s right to receive default notices directly, the right to cure tenant defaults to keep the store open, step-in rights if the franchisee fails, and approval rights over any alterations, signage, or design changes.</p>



<p>Understanding what your franchisor requires before you negotiate with the landlord will save you significant time and legal costs.</p>



<h2 class="wp-block-heading">2. Use Clause and Brand Standards</h2>



<p>Your lease must permit you to operate the franchised concept exactly as required by the franchisor. A use clause that is too narrow — or too broad — can create compliance issues down the road.</p>



<p>Pay attention to whether the permitted use in the lease matches the franchise system&#8217;s requirements, whether exclusive use protections are available, and whether the lease allows for the build-out, signage, and equipment layout your franchisor requires.</p>



<h2 class="wp-block-heading">3. Rent Structure and Operating Expenses</h2>



<p>CAM charges (Common Area Maintenance), taxes, and insurance pass-throughs can significantly impact your unit economics. Many franchisees focus only on base rent and overlook these costs — sometimes with serious financial consequences.</p>



<p>Key issues to negotiate include the definition and exclusions of CAM charges, caps on controllable CAM increases, audit rights, and how your proportionate share of expenses is calculated.</p>



<h2 class="wp-block-heading">4. Landlord Work, Tenant Work, and Delivery Conditions</h2>



<p>Franchise build-outs are expensive and time-sensitive. Your lease should clearly define what condition the landlord must deliver the space in, with specific timelines and remedies if there are delays.</p>



<p>Make sure the work letter coordinates with your franchisor&#8217;s design requirements, and negotiate for early access rights so you can begin fixturing and training before the official rent commencement date.</p>



<h2 class="wp-block-heading">5. Personal Guaranty and Security Requirements</h2>



<p>Franchisees are frequently required to provide personal guaranties, letters of credit, or security deposits. Before agreeing to these terms, evaluate whether burn-off provisions are available (where the guaranty reduces over time), whether there are caps on your personal liability, and whether the guaranty terms align with what the franchisor requires.</p>



<h2 class="wp-block-heading">6. Assignment and Transfer Rights</h2>



<p>Your ability to sell the business depends on your ability to transfer the lease. If the landlord can unreasonably block an assignment, it can seriously limit your exit options and the value of your franchise.</p>



<p>Ensure the lease permits assignment in connection with a sale of the franchised business, that landlord consent cannot be unreasonably withheld, and ideally that you are released from personal liability upon a completed assignment.</p>



<h2 class="wp-block-heading">7. Default, Remedies, and Cure Rights</h2>



<p>A lease default can trigger termination of both the lease and your franchise agreement — a catastrophic outcome for any franchisee. Protecting yourself requires extended cure periods, clear notice requirements, and franchisor cure rights that allow the brand to step in before the lease is terminated.</p>



<h2 class="wp-block-heading">8. Term, Renewal Options, and Relocation Rights</h2>



<p>Your lease term must be long enough to satisfy your franchisor&#8217;s requirements and to justify the cost of the build-out. Negotiate for multiple renewal options at fair market rent and limit the landlord&#8217;s ability to relocate you within the property without adequate compensation.</p>



<h2 class="wp-block-heading">9. Operating Requirements and Continuous Operation Clauses</h2>



<p>Franchisors require continuous operation. Landlords often do too. Make sure your lease includes reasonable flexibility for remodels, temporary closures, and force majeure events — and that dark store penalties are limited or eliminated.</p>



<h2 class="wp-block-heading">10. Insurance, Indemnity, and Risk Allocation</h2>



<p>Your lease insurance requirements must align with your franchisor&#8217;s insurance requirements and your actual coverage. Avoid broad indemnities that shift excessive risk onto you, and ensure waivers of subrogation are reciprocal.</p>



<h2 class="wp-block-heading">11. Coordination With the Franchise Agreement</h2>



<p>Perhaps the most overlooked issue in franchise leasing: the lease and the franchise agreement must not conflict with each other. Misaligned terms, renewal periods, assignment mechanics, or default triggers can create serious legal and operational problems.</p>



<p>An experienced attorney will review both documents together — not in isolation — to ensure they work in your favor.</p>



<h2 class="wp-block-heading">Get Legal Help Before You Sign</h2>



<p>Franchise lease agreements are among the most complex commercial real estate documents a business owner will encounter. The stakes are high — your personal assets, your investment, and your franchise license can all be affected by the terms you agree to.</p>



<p><strong>Brent Levison</strong> has extensive experience in franchise and commercial law. If you are negotiating a franchise lease or need a review before signing, <a href="/contact-us-2" title="">contact us today</a> for a consultation.</p>



<p><em>The information in this article is provided for general informational purposes only and does not constitute legal advice. For advice specific to your situation, please consult a qualified attorney.</em></p><p>The post <a href="https://brentlevison.com/important-franchise-lease-agreement-terms-every-franchisee-should-know/">Important Franchise Lease Agreement Terms Every Franchisee Should Know</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></content:encoded>
					
		
		
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		<title>Why Flat-Fee Billing Works Better for Commercial Real Estate Leasing</title>
		<link>https://brentlevison.com/why-flat-fee-billing-works-better-for-commercial-real-estate-leasing/</link>
		
		<dc:creator><![CDATA[brentlevison]]></dc:creator>
		<pubDate>Wed, 08 Apr 2026 14:08:51 +0000</pubDate>
				<category><![CDATA[Tips]]></category>
		<guid isPermaLink="false">https://brentlevison.com/?p=1047</guid>

					<description><![CDATA[<p>Flat-fee billing has become an increasingly powerful model in commercial real estate leasing — and for good reason. It aligns the interests of attorney and client in a way that hourly billing simply cannot. In a field where predictability, efficiency, and strategic clarity matter, flat fees create a cleaner, more professional framework for legal services. [&#8230;]</p>
<p>The post <a href="https://brentlevison.com/why-flat-fee-billing-works-better-for-commercial-real-estate-leasing/">Why Flat-Fee Billing Works Better for Commercial Real Estate Leasing</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>Flat-fee billing has become an increasingly powerful model in commercial real estate leasing — and for good reason. It aligns the interests of attorney and client in a way that hourly billing simply cannot.</p>



<p>In a field where predictability, efficiency, and strategic clarity matter, flat fees create a cleaner, more professional framework for legal services.</p>



<h2 class="wp-block-heading">No Surprises, No Anxiety</h2>



<p>Clients appreciate knowing the cost upfront. There are no surprises, no anxiety about running clocks, and no hesitation to pick up the phone for fear that a six-minute increment will appear on the next invoice.</p>



<p>This transparency builds trust — and trust is the foundation of any long-term advisory relationship.</p>



<h2 class="wp-block-heading">Expertise Is Rewarded, Not Penalized</h2>



<p>For attorneys, flat-fee billing rewards expertise rather than time spent. A seasoned commercial leasing attorney may complete a task in a fraction of the time it would take a generalist — yet hourly billing perversely penalizes that efficiency.</p>



<p>Flat fees flip the model. Mastery and experience become assets, not liabilities. Attorneys can focus on delivering high-quality work, strategic guidance, and thoughtful negotiation rather than tracking time entries or justifying hours. This reduces administrative burden, minimizes billing disputes, and allows lawyers to operate more like business partners than service vendors.</p>



<h2 class="wp-block-heading">Better Communication, Better Outcomes</h2>



<p>Flat-fee structures encourage better communication. When clients know a call or email won&#8217;t trigger additional charges, they engage earlier and more openly. That leads to fewer misunderstandings, better-informed decisions, and a smoother transaction process.</p>



<p>In commercial leasing — where timing, leverage, and clarity of terms can materially affect outcomes — this open dialogue is invaluable. Attorneys gain a more complete picture of the client&#8217;s goals, risk tolerance, and operational needs, enabling more tailored and effective representation.</p>



<h2 class="wp-block-heading">Operational Stability for Everyone</h2>



<p>From a business perspective, flat-fee billing creates operational stability. Attorneys can forecast revenue more accurately, streamline workflows, and design repeatable processes that improve quality and consistency.</p>



<p>Clients benefit because it produces faster turnaround times, clearer deliverables, and a more predictable experience. The model also reduces friction at the end of a matter — instead of debating time entries, both sides can focus on closing the deal and planning next steps.</p>



<h2 class="wp-block-heading">A Modern, Client-Centric Approach</h2>



<p>Flat-fee billing reflects a modern approach to legal services. It respects the client&#8217;s need for budget certainty and the attorney&#8217;s need to be compensated for expertise rather than hours.</p>



<p>In commercial leasing — where the value lies in precision, negotiation strategy, and risk mitigation — flat-fee billing creates a healthier, more aligned, and more efficient relationship for everyone involved.</p>



<h2 class="wp-block-heading">Work With an Attorney Who Values Your Time and Budget</h2>



<p>If you are navigating a commercial lease negotiation and want transparent, predictable legal fees, <strong>Brent Levison</strong> offers flat-fee structures designed to give you clarity from day one.</p>



<p><a href="https://brentlevison.com/contact-us-2/" title="Contact us">Contact us today</a> to discuss your leasing needs.</p>



<p><em>The information in this article is provided for general informational purposes only and does not constitute legal advice. For advice specific to your situation, please consult a qualified attorney.</em></p><p>The post <a href="https://brentlevison.com/why-flat-fee-billing-works-better-for-commercial-real-estate-leasing/">Why Flat-Fee Billing Works Better for Commercial Real Estate Leasing</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></content:encoded>
					
		
		
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		<title>What Is a Franchise Lease Agreement? A Complete Guide for Franchisees</title>
		<link>https://brentlevison.com/what-is-a-franchise-lease-agreement-a-complete-guide-for-franchisees/</link>
		
		<dc:creator><![CDATA[brentlevison]]></dc:creator>
		<pubDate>Wed, 01 Apr 2026 18:14:29 +0000</pubDate>
				<category><![CDATA[Tips]]></category>
		<guid isPermaLink="false">https://brentlevison.com/?p=1032</guid>

					<description><![CDATA[<p>If you&#8217;re entering the world of franchising, understanding your lease is just as important as understanding your franchise agreement. A franchise lease agreement is one of the most consequential documents you&#8217;ll sign — and one of the most misunderstood. Here&#8217;s what you need to know. What Is a Franchise Lease Agreement? A franchise lease agreement [&#8230;]</p>
<p>The post <a href="https://brentlevison.com/what-is-a-franchise-lease-agreement-a-complete-guide-for-franchisees/">What Is a Franchise Lease Agreement? A Complete Guide for Franchisees</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>If you&#8217;re <a href="https://www.sba.gov/business-guide/plan-your-business/buy-existing-business-or-franchise" target="_blank" rel="noopener" title="">entering the world of franchising</a>, understanding your lease is just as important as understanding your franchise agreement. A franchise lease agreement is one of the most consequential documents you&#8217;ll sign — and one of the most misunderstood.</p>



<p>Here&#8217;s what you need to know.</p>



<h2 class="wp-block-heading">What Is a Franchise Lease Agreement?</h2>



<p>A franchise lease agreement is a commercial lease specifically designed for a franchised business. It governs the physical location where the franchisee operates — but unlike a standard retail lease, it layers in requirements and protections from the franchisor as well.</p>



<p>It is <strong>not</strong> the same as the franchise agreement, which covers brand rights, royalties, and training. The franchise lease is strictly about the real estate.</p>



<h2 class="wp-block-heading">The Three Parties Involved</h2>



<p>One of the key things that sets a franchise lease apart from a standard retail lease is the number of parties involved:</p>



<ul class="wp-block-list">
<li><strong>Landlord</strong> — the property owner</li>



<li><strong>Franchisee</strong> — the tenant operating the business</li>



<li><strong>Franchisor</strong> — the brand owner with approval and control rights over the lease</li>
</ul>



<p>This three-party dynamic creates a more complex negotiation process. The franchisor&#8217;s interests and the landlord&#8217;s interests don&#8217;t always align — and the franchisee is often caught in the middle.</p>



<h2 class="wp-block-heading">How Franchise Leases Differ From Standard Retail Leases</h2>



<figure class="wp-block-table"><table class="has-fixed-layout"><thead><tr><th>Issue</th><th>Standard Retail Lease</th><th>Franchise Lease</th></tr></thead><tbody><tr><td>Parties</td><td>Landlord &amp; Tenant</td><td>Landlord, Tenant &amp; Franchisor</td></tr><tr><td>Approval Rights</td><td>None</td><td>Franchisor must approve site &amp; lease</td></tr><tr><td>Lease Rider</td><td>Rare</td><td>Mandatory franchisor addendum</td></tr><tr><td>Operational Controls</td><td>Minimal</td><td>Must meet brand standards</td></tr><tr><td>Franchisor Rights</td><td>None</td><td>Step-in, cure, assignment, notice rights</td></tr><tr><td>Tenant Entity</td><td>Any business</td><td>Must match franchisor requirements</td></tr></tbody></table></figure>



<h2 class="wp-block-heading">Common Franchisor Lease Rider Provisions</h2>



<p>Most franchisors require a lease rider or addendum that grants them specific protections, including:</p>



<ul class="wp-block-list">
<li>The right to receive notices of default directly from the landlord</li>



<li>The right to cure tenant defaults to keep the location open</li>



<li>The right to assume the lease if the franchisee fails</li>



<li>The right to assign the lease to a new franchisee</li>



<li>Restrictions on altering the premises without franchisor approval</li>
</ul>



<p>These provisions are designed to protect the franchisor&#8217;s brand continuity — but they can also limit your flexibility as a franchisee.</p>



<h2 class="wp-block-heading">Who Signs the Franchise Lease?</h2>



<p>In most cases, the <strong>franchisee signs the lease directly</strong> as the tenant. In some systems, the franchisor signs a master lease and subleases to the franchisee — but this is less common.</p>



<p>Franchisees are frequently required to provide <strong>personal guaranties</strong>, even when operating through an LLC or corporation. This means your personal assets could be on the line if the business fails.</p>



<h2 class="wp-block-heading">Why Franchise Lease Agreements Matter</h2>



<p>A poorly negotiated franchise lease can have serious consequences:</p>



<ul class="wp-block-list">
<li>Increased personal liability</li>



<li>Higher operating costs (CAM charges, taxes, build-out requirements)</li>



<li>Limited exit options if you need to sell or close</li>



<li>Conflicts with franchisor requirements</li>



<li>Risk to your franchise license itself</li>
</ul>



<p>Negotiating a franchise lease requires balancing the demands of both the landlord and the franchisor — while protecting your own interests as the operator.</p>



<h2 class="wp-block-heading">Get Legal Guidance Before You Sign</h2>



<p>Franchise lease agreements are complex documents with long-term financial and legal implications. Before signing, it&#8217;s strongly recommended to work with an attorney who understands both commercial real estate and franchise law.</p>



<p><strong>Brent Levison</strong> has extensive experience in franchise and commercial law. If you have questions about a franchise lease agreement or need guidance before signing, <a href="/contact-us-2" title="">contact us today</a>.</p>



<p><em>The information in this article is provided for general informational purposes only and does not constitute legal advice. For advice specific to your situation, please consult a qualified attorney.</em></p><p>The post <a href="https://brentlevison.com/what-is-a-franchise-lease-agreement-a-complete-guide-for-franchisees/">What Is a Franchise Lease Agreement? A Complete Guide for Franchisees</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></content:encoded>
					
		
		
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		<title>Why Listening Is the Most Important Skill in Commercial Lease Negotiation</title>
		<link>https://brentlevison.com/why-listening-is-the-most-important-skill-in-commercial-lease-negotiation/</link>
		
		<dc:creator><![CDATA[brentlevison]]></dc:creator>
		<pubDate>Wed, 25 Mar 2026 14:19:49 +0000</pubDate>
				<category><![CDATA[Tips]]></category>
		<guid isPermaLink="false">https://brentlevison.com/?p=1050</guid>

					<description><![CDATA[<p>Listening to the client — and truly understanding their business model, operational realities, and long-term goals — is the foundation of effective representation in any commercial lease negotiation. A lease is not just a legal document. It is a business instrument that directly affects profitability, flexibility, and day-to-day operations. When an attorney approaches a lease [&#8230;]</p>
<p>The post <a href="https://brentlevison.com/why-listening-is-the-most-important-skill-in-commercial-lease-negotiation/">Why Listening Is the Most Important Skill in Commercial Lease Negotiation</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>Listening to the client — and truly understanding their business model, operational realities, and long-term goals — is the foundation of effective representation in any commercial lease negotiation.</p>



<p>A lease is not just a legal document. It is a business instrument that directly affects profitability, flexibility, and day-to-day operations. When an attorney approaches a lease without a deep grasp of how the client actually functions, the negotiation becomes a technical exercise rather than a strategic one. The result is often a lease that is legally sound but operationally flawed.</p>



<h2 class="wp-block-heading">Every Business Has Unique Needs</h2>



<p>Every business has unique drivers: customer flow, staffing patterns, delivery schedules, storage needs, regulatory constraints, branding requirements, and growth plans. These factors dictate how a space must function.</p>



<p>A medical practice may need after-hours access, specialized build-outs, and strict control over neighboring uses. A restaurant may require venting rights, grease trap access, and predictable delivery logistics. A retailer may depend on visibility, signage, and co-tenancy protections.</p>



<p>Without understanding these nuances, an attorney cannot identify the clauses that matter most — or the risks that could quietly undermine the business.</p>



<h2 class="wp-block-heading">Understanding Risk Tolerance Shapes Strategy</h2>



<p>Listening also uncovers the client&#8217;s risk tolerance. Some clients prioritize flexibility and exit rights. Others value stability and predictable occupancy costs. Some are willing to invest heavily in improvements — others need landlord contributions to make the deal viable.</p>



<p>These distinctions shape negotiation strategy. A lawyer who listens can tailor the approach — pushing hard where the client needs protection and conceding where the client sees limited value. This avoids unnecessary conflict and keeps negotiations focused on what truly matters.</p>



<h2 class="wp-block-heading">Anticipating Problems Before They Arise</h2>



<p>Understanding the client&#8217;s operations also allows the attorney to anticipate issues the client may not yet see. A sophisticated leasing lawyer can translate business needs into precise, enforceable lease language — but that translation is only possible when the attorney has a full picture of how the business works.</p>



<p>Listening turns the attorney into a strategic advisor rather than a document reviewer.</p>



<h2 class="wp-block-heading">Listening Builds Long-Term Trust</h2>



<p>Moreover, listening builds trust. Clients feel heard, understood, and supported. They are more likely to share concerns early, ask questions freely, and rely on the attorney as a partner in the process.</p>



<p>This leads to better decisions, fewer surprises, and a smoother negotiation. It also strengthens the long-term relationship — critical in a field where clients often return for renewals, expansions, relocations, and new ventures.</p>



<h2 class="wp-block-heading">The Lease Should Serve the Business</h2>



<p>Commercial leasing is not about filling in forms or redlining boilerplate. It is about aligning the lease with the client&#8217;s business objectives so the space becomes an asset rather than a constraint.</p>



<p>When an attorney listens deeply and understands the client&#8217;s operational goals, the negotiation becomes more strategic, the protections more meaningful, and the final lease more supportive of long-term success.</p>



<h2 class="wp-block-heading">Work With an Attorney Who Actually Listens</h2>



<p><strong>Brent Levison</strong> brings extensive experience in commercial real estate leasing — and a commitment to understanding your business before picking up a pen.</p>



<p><a href="/contact-us-2" title="">Contact us today</a> to discuss your leasing needs.</p>



<p><em>The information in this article is provided for general informational purposes only and does not constitute legal advice. For advice specific to your situation, please consult a qualified attorney.</em></p><p>The post <a href="https://brentlevison.com/why-listening-is-the-most-important-skill-in-commercial-lease-negotiation/">Why Listening Is the Most Important Skill in Commercial Lease Negotiation</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></content:encoded>
					
		
		
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		<title>Florida&#8217;s Reduced Commercial Rental Sales Tax</title>
		<link>https://brentlevison.com/floridas-reduced-commercial-rental-sales-tax/</link>
		
		<dc:creator><![CDATA[brentlevison]]></dc:creator>
		<pubDate>Mon, 01 Jul 2024 17:35:00 +0000</pubDate>
				<category><![CDATA[Tips]]></category>
		<guid isPermaLink="false">https://brentlevison.com/?p=989</guid>

					<description><![CDATA[<p>Florida has distinct taxation policies that distinguish it from other states. Notably, it imposes sales tax on commercial rentals and has been gradually reducing the sales tax rate in recent years. Individuals and businesses involved in leasing or renting commercial real estate in Florida need to comprehend the intricacies of this regulation, such as what [&#8230;]</p>
<p>The post <a href="https://brentlevison.com/floridas-reduced-commercial-rental-sales-tax/">Florida’s Reduced Commercial Rental Sales Tax</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>Florida has distinct taxation policies that distinguish it from other states. Notably, it imposes sales tax on commercial rentals and has been gradually reducing the sales tax rate in recent years. Individuals and businesses involved in leasing or renting commercial real estate in Florida need to comprehend the intricacies of this regulation, such as what constitutes rental consideration and which aspects of a lease may be exempt from the tax base.</p>



<p>In Florida, the lease, rental, or licensing of commercial real property is subject to state sales tax. This tax encompasses any payment made for the privilege to occupy or utilize the property, including base rent, additional rental fees, and other mandatory payments specified in the lease agreement. Any lessor of real estate must register with the Florida Department of Revenue before engaging in business or entering into a commercial lease.</p>



<p>Over the years, the sales tax rate on commercial rentals in Florida has gradually decreased. Currently set at 4.5%, the state tax on commercial property rentals will be further reduced to 2% effective June 1, 2024. Initially slated for July 1, 2024, this reduction aims to benefit businesses operating in Florida.<br>Despite the reduction in the state tax rate, counties that impose a surtax will continue to apply it. In 2024, surtax rates vary from 0.5% to 1.5%, with the exception of Collier County, which eliminated the surtax by the end of 2023.</p>



<p>It&#8217;s essential to note that each commercial rental property location is considered a distinct entity and necessitates its own tax certificate. While Landlords or their representatives are usually responsible for registering, collecting, and remitting the tax, tenants may become liable for the tax if the landlord fails to meet these obligations. This scenario, known as use tax, may become a concern during a sales tax audit. Lessors and lessees of commercial rentals should carefully review lease agreements for clauses relating to sales taxes, including the tax base calculation and applicable tax rates.</p>



<p>The business rental tax, encompassing rentals of commercial office or retail spaces, warehouses, self-storage units, and mini-warehouses, does not cover sales and use taxes on parking lots, boat docks, and aircraft hangars, as separate regulations govern these categories.</p><p>The post <a href="https://brentlevison.com/floridas-reduced-commercial-rental-sales-tax/">Florida’s Reduced Commercial Rental Sales Tax</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></content:encoded>
					
		
		
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		<title>Top 5 Considerations for Commercial Landlords When Negotiating Hazardous Materials Provisions in a Retail or Office Lease</title>
		<link>https://brentlevison.com/top-5-considerations-when-negotiating-in-a-retail-or-office-lease/</link>
		
		<dc:creator><![CDATA[brentlevison]]></dc:creator>
		<pubDate>Fri, 09 Jun 2023 19:44:28 +0000</pubDate>
				<category><![CDATA[Tips]]></category>
		<guid isPermaLink="false">https://brentlevison.com/?p=982</guid>

					<description><![CDATA[<p>As a commercial landlord, it’s important to understand the potential risks associated with hazardous materials and substances, as well as the environmental laws related to them. Negotiating hazardous materials provisions in retail and office leases can be complex and require careful consideration. In this article, we discuss the top five considerations for commercial landlords when [&#8230;]</p>
<p>The post <a href="https://brentlevison.com/top-5-considerations-when-negotiating-in-a-retail-or-office-lease/">Top 5 Considerations for Commercial Landlords When Negotiating Hazardous Materials Provisions in a Retail or Office Lease</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>As a commercial landlord, it’s important to understand the potential risks associated with hazardous materials and substances, as well as the environmental laws related to them. Negotiating hazardous materials provisions in retail and office leases can be complex and require careful consideration. In this article, we discuss the top five considerations for commercial landlords when negotiating hazardous materials provisions in their lease agreements.</p>



<h2 class="wp-block-heading">1. Definition of Hazardous Materials/Hazardous Substances</h2>



<p>It’s important to have a clear definition of hazardous materials in the lease agreement. The definition should align with the applicable laws and regulations governing the use, storage, and disposal of hazardous materials. This will ensure the tenant&#8217;s compliance with environmental laws, minimize the risk of liability, and protect the property&#8217;s value.</p>



<h2 class="wp-block-heading">2. Compliance with Environmental Laws</h2>



<p>Commercial landlords need to ensure that their tenants are compliant with all applicable federal, state, and local environmental laws and regulations related to hazardous materials. The lease agreement should require tenants to obtain all necessary permits and licenses, regularly submit compliance reports, and maintain proper records. By doing so, landlords can protect themselves from potential fines, legal penalties, and reputation damage.</p>



<h2 class="wp-block-heading">3. Allocation of Responsibilities</h2>



<p>It’s essential to clearly allocate responsibilities between the landlord and tenant&nbsp;regarding hazardous materials present on the property. The lease agreement should outline which party is responsible for handling, storing, and disposing of hazardous materials, as well as any required cleaning and remediation. This will help avoid confusion and disputes regarding liability when it comes to hazardous materials on the property.</p>



<h2 class="wp-block-heading">4. Indemnification and Insurance</h2>



<p>Commercial landlords should protect their investments by requiring tenants to indemnify and hold them harmless from any liability resulting from hazardous materials on the property. Tenants should also be required to maintain adequate insurance coverage to cover any potential risks associated with hazardous materials. The insurance should include general liability and environmental impairment liability insurance.</p>



<h2 class="wp-block-heading">5. Inspection and Remediation</h2>



<p>Commercial landlords should have the right to inspect the property for potential hazardous materials and require remediation if necessary. The lease agreement should outline the process for inspections, remediation, and any associated costs. This will ensure that the property is properly maintained, comply with environmental laws, and preserve its value.</p>



<p>In conclusion, negotiating environmental matters such as hazardous materials provisions in retail and office leases requires careful consideration of the legal and environmental risks involved. Commercial landlords should be proactive in protecting their interests by carefully drafting lease agreements that allocate responsibilities, mitigate potential liabilities, and protect the value of their&nbsp;investments.</p><p>The post <a href="https://brentlevison.com/top-5-considerations-when-negotiating-in-a-retail-or-office-lease/">Top 5 Considerations for Commercial Landlords When Negotiating Hazardous Materials Provisions in a Retail or Office Lease</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></content:encoded>
					
		
		
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		<title>Types of Use Provisions – Commercial Lease Agreement</title>
		<link>https://brentlevison.com/types-of-use-provisions-commercial-lease-agreement/</link>
		
		<dc:creator><![CDATA[brentlevison]]></dc:creator>
		<pubDate>Wed, 08 Feb 2023 14:37:47 +0000</pubDate>
				<category><![CDATA[Tips]]></category>
		<guid isPermaLink="false">https://brentlevison.com/?p=970</guid>

					<description><![CDATA[<p>Once you&#8217;ve located that “perfect” space and location, and you and the landlord have agreed to a Letter of Intent on the key terms, such as the rental amounts, you still have much to do before finalizing the lease. Two important clauses (most frequently in shopping center leases) are the &#8220;use&#8221; clause and the &#8220;exclusive&#8221; [&#8230;]</p>
<p>The post <a href="https://brentlevison.com/types-of-use-provisions-commercial-lease-agreement/"><strong>Types of Use Provisions – Commercial Lease Agreement</strong></a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>Once you&#8217;ve located that “perfect” space and location, and you and the landlord have agreed to a Letter of Intent on the key terms, such as the rental amounts, you still have much to do before finalizing the lease. Two important clauses (most frequently in shopping center leases) are the &#8220;use&#8221; clause and the &#8220;exclusive&#8221; clause, in which the landlord and you agree that you will engage in certain services and activities and not engage in others.</p>



<h2 class="wp-block-heading">The Use Clause and Exclusive Clause</h2>



<p>Landlords typically want to limit how you&#8217;ll operate from the rented space. The limitations can be as broad as what type of business you&#8217;ll conduct there, as narrow as what specific services or products you&#8217;ll offer, or as subjective as the quality level of your operation. A use clause can be either drafted as a restriction on how you do business—stating what you can&#8217;t do—or drafted as prescription, describing what you must do.  In general, a tenant wants to avoid strict limitations on the use of the leased premises and keep flexibility and optionality available for growth and business changes, etc.</p>



<p>An exclusive clause in your favor is a commitment by the landlord that only you and no one else in the shopping center or the building may engage in a particular type of business or carry a certain type of merchandise or at least the clause limits the square footage area and gross sales of other tenants on the sale or offering of certain “exclusive” items in order to protect your use and operations.</p>



<h2 class="wp-block-heading">Restrictive Use Clause</h2>



<p>A restrictive use clause states what the tenant is prohibited from doing, such as selling food (or using the space for office purposes). You&#8217;re free to do anything that&#8217;s not on the list usually subject to any existing exclusive uses at the Shopping Center.</p>



<p>You may be subject to other restrictive use clauses e.g. if the landlord has granted other tenant(s) an &#8220;exclusive&#8221; clause—a promise that the landlord won&#8217;t rent any space to another tenant whose use would compete with the tenant.</p>



<h2 class="wp-block-heading">Permissive Use Clause</h2>



<p>The Permissive use clause states in the Lease what you can do and, by implication, makes any other operations not permitted. It puts the burden on the tenant to carve out every conceivable use at the time you sign the lease. This type of use clause can be very problematic to a tenant, since it can restrict you to a narrow line of operations.</p>



<h2 class="wp-block-heading">Use Clauses That Help Your Business</h2>



<p>Use limitations and provisions are important to negotiate carefully and draft in a very concerted way. Most tenants want protection from competitors or incompatible businesses. For example, an ice cream parlor business could be negatively affected by an ice cream store that opens for operations next door or if you&#8217;re a doctor leasing space in a professional building, you want to protect your professional image by having the landlord agree to rent only to compatible tenants such as other professionals or pharmacy or home care equipment rental services.</p>



<h2 class="wp-block-heading">Obtaining Your Own Exclusive Clause</h2>



<p>There&#8217;s no reason not to negotiate for an exclusive use clause for yourself. Please keep in mind any existing tenants operating at the Shopping Center will not be subject to your exclusive use since your lease is signed post the other existing tenant leases.</p>



<p>An exclusive use clause is only strong as its remedies, you&#8217;ll want to ensure that the landlord agrees to promptly enforce it should another tenant breach its restrictive use clause (and thereby violate your exclusive). Your lease should spell out remedies against the landlord for this type of situation—for example, reduced rent, an option to reduce the lease term or terminate the lease.&nbsp;&nbsp; Please note the landlord will want a cure period and you should insist on a very limited &#8220;cure&#8221; period. Most importantly, you&#8217;ll want an established amount of monetary damages that you don&#8217;t have to prove—the last thing you want is to go to court to prove how much business you lost because another tenant moved into your exclusive.&nbsp;&nbsp; Please note that most landlords will want to carve out “rogue” tenants from these exclusive use remedies and tenant should do it best to keep the time frame to cure limited and damages strong as it is very likely a competing business will have a negative financial impact to your operations.</p><p>The post <a href="https://brentlevison.com/types-of-use-provisions-commercial-lease-agreement/"><strong>Types of Use Provisions – Commercial Lease Agreement</strong></a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></content:encoded>
					
		
		
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		<title>Do I Need to Engage an Attorney for Assistance with Commercial Retail Lease Issues?</title>
		<link>https://brentlevison.com/do-i-need-to-engage-an-attorney-for-assistance-with-commercial-retail-lease-issues/</link>
		
		<dc:creator><![CDATA[brentlevison]]></dc:creator>
		<pubDate>Thu, 08 Jul 2021 18:36:43 +0000</pubDate>
				<category><![CDATA[Tips]]></category>
		<guid isPermaLink="false">https://brentlevison.com/?p=793</guid>

					<description><![CDATA[<p>Retail leases can be very daunting to a non-professional or anyone who is not interested in reading 50 pages of legal jargon. Lease issues are governed by a very specific, dynamic and complex area of real estate law. Oftentimes, the review and analysis or lease issues require the assistance of a lawyer. This is especially [&#8230;]</p>
<p>The post <a href="https://brentlevison.com/do-i-need-to-engage-an-attorney-for-assistance-with-commercial-retail-lease-issues/">Do I Need to Engage an Attorney for Assistance with Commercial Retail Lease Issues?</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>Retail leases can be very daunting to a non-professional or anyone who is not interested in reading 50 pages of legal jargon. Lease issues are governed by a very specific, dynamic and complex area of real estate law. Oftentimes, the review and analysis or lease issues require the assistance of a lawyer. This is especially true when it is a commercial tenant first foray into open and operating a retail business. Unfortunately most Landlord form leases provide the commercial tenants with little to almost no legal rights or protections and certainly some provisions are unilaterally in the favor of the Landlord.</p>
<p>Thus, if you are thinking of opening a new retail location or an office and have any questions or concerns regarding the letter of intent, the commercial lease document itself or are involved in a dispute requiring analysis over a commercial lease, then it may be in your best interest to contact a local real estate attorney for further guidance.</p>
<p>An experienced real estate leasing attorney can inform of your rights and obligations under the terms of the commercial lease. Keep in mind, not any real estate lawyer may fit your needs so please be clear that you are looking to engage a real estate attorney who specializes in commercial lease review, preparation and negotiations. Your counsel can also determine whether any conditions of the lease will work in your favor.</p>
<p>An experienced real estate leasing attorney will be able to help you draft, edit, and<br />
review the terms of your lease, as well as can make sure that its terms are best suited<br />
to the needs of your business currently and in the future.</p><p>The post <a href="https://brentlevison.com/do-i-need-to-engage-an-attorney-for-assistance-with-commercial-retail-lease-issues/">Do I Need to Engage an Attorney for Assistance with Commercial Retail Lease Issues?</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></content:encoded>
					
		
		
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		<title>Pencils Always Sharpened: How On Point Global Balances Testing With Compliance</title>
		<link>https://brentlevison.com/pencils-always-sharpened-how-on-point-global-balances-testing-with-compliance/</link>
		
		<dc:creator><![CDATA[brentlevison]]></dc:creator>
		<pubDate>Mon, 10 Feb 2020 19:28:46 +0000</pubDate>
				<category><![CDATA[On Point Global]]></category>
		<category><![CDATA[Tips]]></category>
		<guid isPermaLink="false">https://brentlevison.com/?p=651</guid>

					<description><![CDATA[<p>At On Point Global, we have a unique company culture. Myself and my partners like to think it’s one of the main reasons why nearly half of our employees have been with us for 3 years or longer. To give you a quick snapshot, our culture is built on a set of core behaviors that [&#8230;]</p>
<p>The post <a href="https://brentlevison.com/pencils-always-sharpened-how-on-point-global-balances-testing-with-compliance/">Pencils Always Sharpened: How On Point Global Balances Testing With Compliance</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>At <strong>On Point Global</strong>, we have a unique company culture. Myself and my partners like to think it’s one of the main reasons why nearly half of our employees have been with us for 3 years or longer.</p>
<p>To give you a quick snapshot, our culture is built on a set of core behaviors that we always aspire to model. These include moving with urgency to get our priorities complete and collaborating across departments to make well-rounded decisions.</p>
<p>One of my favorite core behaviors is that we <em>always keep our pencils sharpened</em>.</p>
<p>This means that we never simply accept success. If we launch an ecommerce website at 10 a.m. and it gives us a 20% conversion rate, we don’t just sit back and relax in our office chairs and call it a day. That same afternoon, our company’s leaders are meeting to discuss steps we can take to double that conversion rate in the next iteration.</p>
<p>The way we do that is through testing. However, as data, marketing and publishing companies across the country are well familiar with – you need to make sure you’re compliant every step of the way. Here’s how.</p>
<h2>The On Point Global Testing Process</h2>
<p>The first step we take is to gather data on how a website is performing. The specific data we’ll focus on depends on the specific type of website we launch.</p>
<p>After gathering data for one to two weeks and giving everyone a chance to review, we set up a meeting with the <strong>On Point Global Miami</strong> leadership team. We’ll use this meeting to discuss the different departments’ ideas for optimization.</p>
<p>Some ideas will relate to adjusting copy. Others will be associated with layout and user experience. All ideas are considered and prioritized. The first test idea that we select will be based on what our team believes will have the biggest impact – based on their experience.</p>
<p>After all, our managers have been implementing tests on our web properties for years now. They have a good understanding of what changes will have positive impacts and what factors may be affecting our rankings or conversion rates.</p>
<p>Next, after selecting a test idea, we implement the change and immediately begin gathering data on how users are interacting with the new iteration of the website.</p>
<p>Oftentimes, we can quickly determine if the test had the desired result. If we see a noticeable decrease in some or all key metrics within a day or two, we may move on to test #2. Otherwise, if the numbers are trending in the right direction, we could let the test run for a week to 10 days.</p>
<p>Then, finally, each successful test’s results are logged so that we can consider them for future sites.</p>
<p>But that’s just half of the process.</p>
<p>In addition to considering possible changes, implementing them step by step and following the metrics for a certain period of days, we also have established checks to ensure that we are being compliant with <strong>FTC</strong> legislation.</p>
<h2>How Brent Levison Combines Compliance Culture With Testing</h2>
<p>As I’ve discussed in another post, creating and maintaining a compliance culture is key to your success in 2020 and going forward. The <strong>Federal Trade Commission’s (FTC) </strong>role is to protect consumers in all aspects of trade. This includes online consumers.</p>
<p>Throughout the testing process, the team members of On Point Global Miami do not lose sight of <strong>FTC</strong> requirements. We train our project managers and department leaders – as well as all other employees within the company – on the importance of compliance and the steps that we all must take in order to meet federal requirements.</p>
<p>From the brainstorming process to laying out each test idea and the steps we’d need to take, our team is checking to make sure (at each stage of the process) that each proposed change would be considered compliant.</p>
<p>If there is any doubt, we consult our compliance counsel. Then, based on their thoughts, we either move forward with testing the concept or we scrap that idea to focus on other tests.</p>
<p>To ensure that <strong>On Point Global</strong> websites are compliant, we have a team dedicated to quality assurance (QA), which is also trained on compliance. This team is instrumental during the testing process. Working in tandem with project managers and our other company leaders, our quality assurance team checks to make sure that each step our team is taking during the testing process will not have any issues related to<br />
compliance, among other things.</p>
<h3>Final Thoughts on Compliance &amp; Testing</h3>
<p>Optimizing your websites through testing is the only way to make sure that your users are having a positive user experience. Checking on compliance requirements each step of the way is the only way to make sure that you’re providing products and services to consumers in a way that is considered legally compliant by the FTC.</p>
<p>Today and going forward, there is no way to separate the two and be successful. All businesses need to prioritize both of these elements at all times. However, if you do have to choose between the two, you must always choose compliance.</p><p>The post <a href="https://brentlevison.com/pencils-always-sharpened-how-on-point-global-balances-testing-with-compliance/">Pencils Always Sharpened: How On Point Global Balances Testing With Compliance</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></content:encoded>
					
		
		
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		<title>The Legal Challenges Data Presents to the FTC</title>
		<link>https://brentlevison.com/the-legal-challenges-data-presents-to-the-ftc/</link>
		
		<dc:creator><![CDATA[brentlevison]]></dc:creator>
		<pubDate>Mon, 10 Feb 2020 19:05:01 +0000</pubDate>
				<category><![CDATA[On Point Global]]></category>
		<category><![CDATA[Tips]]></category>
		<guid isPermaLink="false">https://brentlevison.com/?p=644</guid>

					<description><![CDATA[<p>The gathering and analysis of data have helped some of the biggest businesses in the world to successfully market to consumers. To Google, Facebook and countless other companies, data has become an invaluable currency. Unlike any other, this currency tells what users likely want and can often forecast when they want it. However, this new [&#8230;]</p>
<p>The post <a href="https://brentlevison.com/the-legal-challenges-data-presents-to-the-ftc/">The Legal Challenges Data Presents to the FTC</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>The gathering and analysis of data have helped some of the biggest businesses in the world to successfully market to consumers. To Google, Facebook and countless other companies, data has become an invaluable currency. Unlike any other, this currency tells what users likely want and can often forecast when they want it.</p>
<p>However, this new currency doesn’t come without challenges for the party whose job it is to regulate it.</p>
<p>Hello again. I’m <strong>On Point Global</strong> Chief Administrative Officer <strong>Brent Levison</strong> and the <strong>FTC</strong> and its challenge to manage data security and storage is the topic I’m going to discuss with you today.</p>
<h2>The Role of the Federal Trade Commission (FTC) in Data</h2>
<p>In many instances, data is something that people want to provide access to. They want to see products and services that are relevant to them and that will help them in their daily lives. At the same time, companies want to match people with these offers.</p>
<p>But then there’s the challenge: How do you ensure that all transactions that involve data are done in a safe way?</p>
<p>After all, we’re talking about personal identifying information like a customer’s name, their credit card number and even their Social Security Number in some instances. This is information that needs to be protected in every circumstance.</p>
<p>That’s where the FTC comes in.</p>
<p>Their main job is to protect the interest of the consumer across all data businesses. They can establish new processes in order to ensure that consumers are safe from fraudulent business and that their information remains secure.</p>
<p>Recent data breaches from companies big and small have made the Federal Trade Commission’s role clear as it relates to keeping consumers safe.</p>
<h2>Recent Data Breaches – How the FTC Responds</h2>
<p>In the last two decades, there have been thousands of data breaches, which have released countless pieces of vital consumer data. A number of these breaches involved large companies, such as Target and Capital One.</p>
<p>Hundreds of millions of consumers were affected in many of these individual incidents, with some or all of the following information being leaked:</p>
<ul>
<li>Names</li>
<li>Social Security Numbers</li>
<li>Birth dates</li>
<li>Residential addresses</li>
<li>Bank numbers</li>
<li>Email addresses</li>
<li>Passwords</li>
</ul>
<p>Following the leaks, the <strong>FTC</strong> worked to ensure that these companies would not experience data breaches again. The Commission does this by ensuring that the companies take necessary steps to prevent leaks in the future by way of upgrading their data security and storage practices.</p>
<p>The European Union currently has a very strong set of protection rules on data, courtesy of 2018’s General Data Protection Regulation (GDPR). However, the United States doesn’t yet have a similar overarching law when it comes to data protection.</p>
<p>Despite that, we are getting closer to the EU’s higher level of data regulations. The first sign of this is the California Consumer Privacy Act that has been signed into law.</p>
<h3>The California Consumer Privacy Act (CCPA)</h3>
<p>California is now giving residents the legal right to look into the information that companies have legally gathered on them. While this act is only effective in this one state as of writing (<strong>Brent Levison</strong> on 2/4/2020), it is very likely a sign of laws to come and a small step toward larger online data regulation.</p>
<p>As such, we were quick to update all our websites with CCPA requirements so that we here at On Point Global are FTC compliant.</p>
<p>Currently, the CCPA has the following provisions for residents of California:</p>
<ol>
<li>They can request information about the data that has been compiled on them from businesses with $25 million+ in revenue each year and companies that collect data on 50K+ people per year.</li>
<li>They can find out about the different types of information that companies have gathered from them, such as the locations of their phones, websites they visit, audio clips they’ve recorded and even face recognition points.</li>
<li>They can also get information about any predictions the businesses have made related to their buying habits, interests and more.</li>
<li>Consumers can find out who their information has been bought from or traded to. They can also select to be kept off of all data sale transactions with marketing partners and other businesses.</li>
<li>Users can make requests to these businesses to have all the information that has been gathered about them deleted.</li>
<ol>
<p>Whereas the <strong>FTC</strong> has placed a high level of priority on data security and the way that it is stored, the Federal Trade Commission is also working to ensure that consumers data is only existing in places where customers want it to.</p>
<p>Customers are now more informed than ever on data practices and how their information is stored and shared. They also have the deserved right to play their own part in the regulation of their personal data. It’s just a matter of ensuring that all new consumers enter the market with the same level of understanding.</p>
<p>In addition to keeping customers safe, the FTC also helps to keep them informed by providing information online on subjects like how to handle a data breach, customer rights during these instances and more.</p>
<h3>How Brent Levison of On Point Global Strives for FTC Compliance</h3>
<p>Here at <strong>On Point Global</strong> Miami, we are always striving to be compliant with the <strong>FTC</strong> and the latest regulations. Looking to establish the same standards within your organization? The key is to look outside of your company walls.</p>
<p>New laws are being established with a newfound regularity since the creation of data business models. To ensure that you are keeping up with the trends and understanding their requirements correctly, you need to constantly seek expert advice.</p>
<p>Invest in compliance help now to avoid unnecessary risks.</p>
<p>Seek counsel and ask about the latest updates. Ask what your company could be doing more of, as it relates to compliance and these new regulations. After all, it is very possible that the CCPA in California is only the beginning of state-specific (or even federal) laws that relate to the security and storage of data.</p>
<p>The specific legal changes that will occur in 2020 and beyond are still to be written, but you can be sure of two things.</p>
<ol>
<li>The FTC will become even more involved in the data business to ensure the safety of consumers.</li>
<li>The companies that place a high level of importance on instilling a compliance culture will be the ones that succeed.</li>
</ol><p>The post <a href="https://brentlevison.com/the-legal-challenges-data-presents-to-the-ftc/">The Legal Challenges Data Presents to the FTC</a> first appeared on <a href="https://brentlevison.com">Brent Levison</a>.</p>]]></content:encoded>
					
		
		
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