Radius clause financial definition of radius clause
A shopping center lease clause that prevents a tenant from opening another store within a certain radius of the current shopping center.The purpose is to prevent a competitor from duplicating the landlord's tenant mix in a nearby mall.In the drawing,a 5-mile radius clause would not prohibit the second store, even though they probably have overlapping market areas.Most courts require the restriction to be reasonable in duration and geographical area in order to be enforceable. Contrast with reverse radius clause.
References in periodicals archive
Australian rock band Tame Impala was elevated to the top headliner slot in December to replace Justin Timberlake, who dropped off the line-up after his rescheduled tour dates due to bruised vocal cords conflicted with Coachella's radius clause
You realize too late that Gertie's lease does not include a radius clause
, which would prohibit Gertie from opening another store within a certain distance (and impacting yours).
* The radius clause
protects the sales in the center by preventing tenants from opening a similar business within three to five miles of the center.
They also have "radius clauses
" that bar headline acts or traveling Broadway shows from booking performances within a certain radius or time frame.