In this episode of the Orthodontic Products Podcast, host Alison Werner speaks with David Cohen, attorney and chairman of Cohen Property Law Group, about the lease provisions that can quietly undermine the long-term stability and profitability of orthodontic practices. Cohen, whose firm handles over 300 practice transactions annually, has extensive experience representing clients in partnership, limited liability company law, and employment-related matters. He brings deep expertise in contract negotiation and review, including Non-Disclosure Agreements, Confidentiality Agreements, and Non-Compete Agreements.

Lease Provisions That Could Limit Growth or Profitability

Orthodontists often sign office leases without fully understanding the long-term implications of certain provisions. Cohen emphasizes that even legally sound leases can contain terms that limit practice flexibility, deter buyers, or impose unexpected financial burdens. These clauses often go unnoticed until they cause problems—sometimes during a practice sale or relocation. Key Lease Provisions to Watch For Profit-Sharing Clauses: Require tenants to share a portion of proceeds from the sale of their practice with the landlord. Restoration or “White Box” Clauses: Obligate tenants to return the space to its original condition at lease end, often at high cost. Assignment Restrictions: Limit a tenant’s ability to transfer the lease during a practice sale, depending on buyer credit or landlord discretion. Relocation Clauses: Allow the landlord to move the tenant within the property, potentially disrupting operations and incurring costs. Maintenance and Replacement Clauses: Place responsibility for expensive infrastructure repairs—such as HVAC—on the tenant, sometimes without reasonable limits.