Bands, not steps: The $40,000 percentage rent adjustment I tried to talk my team out of
“If Tenant’s annual gross sales equal or exceed $2,000,000, percentage rent shall be nine percent (9%) of All of Tenant’s gross sales.” Not “the portion of sales above $2,000,000.” Not “the excess.” All of Tenant’s gross sales. The entire $2.1 million gets billed at 9% the moment sales cross the line – a cliff, not a staircase.