Raising Cane’s sues mall over lease restrictions regarding chicken sales
https://www.nwitimes.com/business/local/raising-canes-sues-shopping-mall-over-allegedly-being-tricked-into-signing-lease-for-site-where/article_78cf3a0e-db1e-5b03-9a8a-a45feeb21aef.html
[{"id": "ivjpaz4", "text": "i bet there are about 100 shitty qsr\u2019s selling crappy chicken tenders in my market.", "replies": [{"id": "ivkml2j", "text": "Pretty sure all QSR's have a version of a chicken finger lol", "replies": [{"id": "ivkn02i", "text": "what i\u2019m saying is we have canes, chicken express, bush\u2019s chicken, and several others in addition to the main mediocre ones", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ivjr7d7", "text": "I fucking hate exclusives.", "replies": [{"id": "ivjrpc1", "text": "Our nearest mall food court had a Wendy\u2019s that couldn\u2019t sell baked potatoes \u2014 there was a tenant who already had a baked potato exclusive.", "replies": [{"id": "ivkbmkx", "text": "Guessing the landlord thought, \u201cbaked potato exclusive? Sure, I\u2019ll never have to enforce that one\u201d. Until Wendy\u2019s came along\u2026", "replies": [], "depth": 3}], "depth": 2}, {"id": "ivk3hfy", "text": "I'm always amazed that anyone agrees to some of the crap people ask for.  I was asked for a 5 mile exclusive on tenants use one time, at any proprety LL owned,  where the use had hundreds of competitors in that radius.  Like what does that even accomplish", "replies": [], "depth": 2}], "depth": 1}, {"id": "ivk2whd", "text": "any of you lawyer folks willing to opine about what would happen if raising canes just decided this was landlords problem and not theirs and proceeded anyways?", "replies": [{"id": "ivkh60k", "text": "This is a good question. LL would be in trouble with McD\u2019s for violating the exclusive but Cane\u2019s wouldn\u2019t. Maybe if it was a deed restriction, but it doesn\u2019t sound like it is", "replies": [{"id": "ivkt9l8", "text": "I wonder if a lease memo was recorded by McD's. I assume then you could argue then tenant had constructive knowledge and directly file an injunction?\n\nSomewhat related, I saw a restriction in a recorded lease memo that was clearly worded toward prohibiting Starbucks. It was in a Ross or Michael's lease, I forget...but wow they had something against Starbucks! It made zero sense from a business perspective, unless people are spilling coffee and getting their clothes sticky.", "replies": [{"id": "ivkx8s5", "text": "&gt;but wow they had something against Starbucks!   \n\nThis  comment of yours is going to keep me up at night.   Why??  Maybe statistically, coffee drinkers make bad decisions and cause more  returns?  I'm stumped.", "replies": [{"id": "ivldu8k", "text": "This is a complete guess,  but to help you sleep possibly , maybe they are considering subletting instore like target etc do and dont want competition for their space outside.", "replies": [{"id": "ivlghd0", "text": "ah-hah!  I could see that.  That totally fits.  For a minute I was even thinking anti-union, and didn't want employees getting any ideas on their lunch breaks.", "replies": [{"id": "ivlsgmy", "text": "It was over Ross\u2019s sale of bagged coffee. Long entertaining story, lots of egos involved. \n\nI worked for Starbucks in real estate.\n\nEdit: It was any bagged coffee.", "replies": [{"id": "ivlv3oh", "text": "Oh that's great! I love it.", "replies": [], "depth": 8}, {"id": "ivm26gm", "text": "Wait, people buy bagged coffee at a cheap dress store?", "replies": [], "depth": 8}, {"id": "ivn5gbo", "text": "This is so stupid and id have never guessed that .  thanks for solving the mystery", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "ivkwsm9", "text": "That's exactly what I'm saying.  This is between McD's and the LL.  Cane's has a lease and should do what they want.", "replies": [], "depth": 2}, {"id": "ivl8yzf", "text": "This is totally the landlord\u2019s problem. I would assume the use outlined in the Canes lease either specifically mentions chicken, or references a typical raising cane\u2019s establishment, and it\u2019s the Landlord\u2019s responsibility to outline existing exclusives in the lease. Nothing stopping raising canes from opening.\n\nThe fact that they are suing over this makes it sound like they want out of the lease more than anything.", "replies": [], "depth": 2}, {"id": "ivlq7om", "text": "Not a lawyer*\n\nI think legally, it would be an issue between owner and McDonald\u2019s but it\u2019s still very much Raising Canes problem as well. Depending on how that lease is written, they could be on the hook for any damages or penalties landlord incurs for violations of any use covenants. If it\u2019s gotten this far, it sounds like the owner is actually trying to enforce the lease despite the restriction which is a really wild position to take based on the information given in the article. I can\u2019t imagine what logic the owner is using to defend this to canes if they really can\u2019t sell chicken.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ivkfuhj", "text": "Fuck exclusives. Either strive to make the better product and provide the better service or pack your shit and find another retail space.", "replies": [], "depth": 1}, {"id": "ivkmdx3", "text": "I hate exclusives lol, but I understand them.\n\nI had a tenant (pizza place) who went nuclear about a bagel place opening up in the same center.", "replies": [{"id": "ivkts8f", "text": "So dumb. What I don't get is restaurants/bars that want to eliminate competition so that they're the only choice. I think it is pretty well established that there's a multiplier effect that brings in even more business when you have a hub with more than one choice, allows bar hopping etc.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ivmzum8", "text": "Honestly surprised nobody checked ECR\u2019s before signing the lease. Kinda standard practice.", "replies": [{"id": "ivngaqx", "text": "I\u2019m guessing this exclusive wasn\u2019t recorded. I\u2019m sure Canes legal checked all recorded docs.", "replies": [], "depth": 2}], "depth": 1}]