Monthly Archives :

August 2023

Gottlieb Law - Pop-Up Restaurants and Short Term Commercial Leases in Arizona

Pop Up Shops and Restaurants: What are the Most Important Things to Know About Short Term Commercial Leases in Arizona?

Pop Up Shops and Restaurants: What are the Most Important Things to Know About Short Term Commercial Leases in Arizona? 2231 1489 Gottlieb Law

You’ve seen them at the mall and in your favorite commercial outlets. Pop up shops, the stores that used to be regional and holiday focused are now becoming the next big trend in this space. It gives new and upcoming retailers a way to showcase brands and even test appeal.

Now, short-term leases are becoming more common across many types of businesses. 

When setting up pop up stores, pop up restaurants are essentially engaging in a short-term commercial lease in Arizona, and there are several legal considerations to keep in mind. While specific requirements may vary, depending on the jurisdiction and type of establishment, here are the most important things to know about short term leases in Arizona.

Permits and Licenses Are Usually Required

Start by making sure that you have obtained any of the necessary permits and or licenses that will be typically required to operate your pop-up store or restaurant. This may include business licenses, food service permits, health and safety permits, liquor licenses (if applicable) and any specific permits for temporary or mobile businesses.

The Arizona Department of Revenue (ADOR) has published a guide to tax and licensing compliance with all necessary information.

At minimum, pop up business owners should be prepared to register with ADOR and obtain the following licenses:

  •       Transaction Privilege Tax License
  •       Employer Identification Number (EIN)
  •       Regulatory (Professional/Special) Licensing/Permits
  •       Local Business/Occupational License/Permit(s) 

Not every type of Arizona business requires licenses and permits, but there are significant penalties for operating without necessary licenses. Be sure to confer with qualified legal counsel in advance to assure that you are abiding by the current laws and regulations that are in place.

Lease Agreements Determine When/How Your Pop-up Operates 

Spend time reviewing and also trying to negotiate the lease agreement carefully before you sign or agree to anything. You’ll want to make sure you consider aspects such as the duration of the lease, any rental terms, the liability provisions, insurance requirements and any possible restrictions on the use of the space that may apply. Commercial leases, in particular, often have broader use provisions, which provide clarity on the permissible activities on a property. These are designed with transparency in mind as well as serving to protect property values and facilitate a harmonious landlord-tenant relationship by setting clear expectations for both parties.

It’s important to have a clear understanding of the terms and conditions before signing the lease, no matter how long your business plans to operate.

Zoning and Land Use Regulations Can Impact Your Operations

Verify that the location you intend to use for your pop up store or restaurant is zoned for commercial activities. Check local zoning regulations to ensure compliance with permitted land uses, occupancy limits, parking requirements, and signage restrictions.

This typically is not an issue with pop up shops in Arizona, as established brick-and-mortar businesses tend to share their space with temporary stores and restaurants. As such, this means that general commercial activities are already allowed within these zones, so opening a pop up business is a more seamless process.

Complying with Health and Safety Regulations 

Research the industry your pop up will be registered under and take the time to research any health and safety regulations that currently exist. This includes proper food handling and storage practices, fire safety measures, accessibility requirements, and adherence to building codes. Health inspections and permits may be necessary for food-related businesses.

Insurance Coverage Will Vary

You’re going to also need the appropriate insurance coverage to protect your business and mitigate potential risks. Make sure to review your options with general liability insurance, property insurance, product liability insurance (for restaurants), and workers’ compensation insurance (if you have employees). The specific coverage needed will depend on the nature of your business.

Per Arizona state law, all businesses with at least one employee are required to carry worker’s compensation insurance with the exception of independent contractors and domestic workers. Though other types of insurance are not legally required, most businesses carry policies that can help them limit liabilities.

Using Intellectual Property Rights Requires Permissions 

If you plan to use trademarks, logos, or copyrighted materials in your pop up store or restaurant, ensure that you have the necessary permissions or licenses to use those assets. The U.S. Copyright Office offers automatic protection for any published works, and any copyrighted work cannot be duplicated or used as the basis for new work without the permission of the original owner. Be mindful of potential infringement issues and protect your own intellectual property, if applicable.

Consult with an Experienced Arizona Real Estate Attorney 

It’s important to consult with a local attorney who specializes in business and commercial law to ensure compliance with all applicable laws, regulations and local requirements specific to your jurisdiction before engaging in any short-term commercial lease in Arizona.

Gottlieb Law has significant experiences with commercial real estate in Arizona and can assist you and your business with any short- or long-term endeavors. Contact us today at 602-899-8188 to schedule an initial consultation or make an appointment online

Gottlieb Law - Tips to Recognize Common Real Estate Scams and Frauds

Straightforward Tips to Recognize Common Real Estate Scams and Frauds

Straightforward Tips to Recognize Common Real Estate Scams and Frauds 1555 1166 Gottlieb Law

Whether you’re a prospective homebuyer, a tenant looking for a rental property, or an investor seeking lucrative opportunities, it’s essential to be aware of the risks and pitfalls that can accompany real estate transactions. Scammers have become more and more sophisticated  with how they operate, which means that you should always be diligent in your approach. 

Due to the high rate of real estate scams and real estate fraud that currently exists, it is always wiser to work with an experienced real estate attorney before signing any paperwork. In the meantime, we will provide you with valuable tips and insights to help you identify common real estate scams, empowering you to make informed decisions and protect yourself from financial losses and legal troubles.

Tip #1: Research and verify.

Due diligence is an important step in all major transactions, and it can help any prospective property owner or tenant avoid common real estate scams. Always research and verify the legitimacy of individuals, companies, or agencies involved in the transaction. Check their credentials, licenses and reputation through reliable sources like government registries and real estate associations.

Tip #2: If the price is too low, it’s questionable.

The saying, “You get what you pay for,” may apply here. If you come across a property that’s priced too far below other comps in the area, it could be a red flag. Oftentimes, scammers lure in unsuspecting buyers by posting hard to believe prices that are almost too good to be true. On top of researching the parties involved in the transaction, be sure to investigate market rates in the neighborhood to ensure the price you’re offered is within the range.

Tip #3: Request documentation.

It’s always better to have a paper trail in case you need it, than to have no proof if anything does go awry. Ask for copies of legal documents related to the property, such as title deeds, land surveys and property tax receipts. Take your time to carefully review any and all of these documents and make sure that you also consult with a real estate professional or lawyer if you have any doubts to be sure.

Tip #4: Visit the property in person.

Make sure you tour the property before you sign off on any documents to confirm that the seller is legitimate. Scammers often use fake listings or misleading photographs to trick buyers or renters. Insist on inspecting the property personally, or send a trusted representative. For those purchasing a property, professional inspections happen during the escrow process, but renters can also hire an inspector for peace of mind.

Tip #5: Be cautious with wire transfers.

Scammers commonly request payments through wire transfers or unconventional methods (such as gift cards or cryptocurrency) that are difficult to trace. Exercise caution when asked to make payments before signing contracts or without proper documentation.

Tip #6: High-pressure tactics are a warning flag.

One way that scammers operate is to use high pressure tactics to get you to act before you think. Beware of individuals who pressurize you to make immediate payments or sign contracts without allowing you sufficient time to review and consult with professionals. These tactics are often coupled with the low prices mentioned earlier, resulting in a “limited time” price drop.

Tip #7: Use reputable professionals.

When engaging in real estate transactions, seek the services of trusted professionals such as real estate agents, lawyers or brokers. Verify their credentials and experience to ensure they have a solid track record. Additionally, be wary of professionals recommended by the seller or property manager, as they could be part of the scam.

Tip #8: Beware of rental scams.

Rental scams are prevalent, particularly on online platforms where scammers don’t have to show their faces or can digitally alter images. Be cautious if the landlord asks for payment before you’ve had a chance to see the property or sign a lease agreement. Always use secure payment methods and be wary of deals that seem too good to be true.

Tip #9: Research online listings.

When searching for properties online, be cautious of fraudulent listings. Look for inconsistencies in the listing description, images that seem suspicious or look like stock photos and contact information that appears unprofessional or incomplete.

Tip #10: Trust your instincts.

If something feels off or too good to be true, it probably is. Trust your gut instinct when you see red flags. Before completing any type of a real estate transaction, consult with experienced legal counsel. They can help conduct any due diligence, as well as verify and vet the seller and the property in advance to save you time, money and undue stress. 

Avoid Scams with the Help of an Experienced Real Estate Attorney

Remember, awareness and caution are crucial when dealing with real estate transactions. If you suspect fraud or encounter suspicious activity, report it to the appropriate authorities immediately. You can also involve an experienced real estate attorney, who can help you identify scammers and avoid fraudulent transactions. The attorneys at Gottlieb Law are prepared to assist you with securing an investment or finding a legitimate property to rent. Contact us today at 602-899-8188 to schedule an initial consultation or make an appointment on our contact us page.