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Chef Lisa just rented a new space to build out her dream restaurant. She has invested a great deal of money in the build-out and fixturing of the restaurant. The landlord has contributed a substantial sum in build-out (“TI”) money. The lease requires all improvements to remain in the building after a termination of the lease, whether by expiration or early termination for any reason. Chef Lisa seeks to finance trade fixtures and the bank will finance trade fixtures only if the bank is able to file an UCC lien on the trade fixtures. The landlord’s position is a restaurant build-out has no trade fixtures as everything is part of the build-out, especially where the landlord is contributing substantial monies to the build-out. How would you advice Chef Lisa to negotiate for her trade fixtures?

Operation Management, Management Studies

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