Protection for Trainers
and Facility Owners:
Facility Use License Agreements
By Adam Trenk, Esq. • [email protected]
T
he Equine Industry is comprised of many
disciplines and people from all walks of life.
Among those participants are horse owners
and trainers, whose relationships are generally
arranged in a manner that most of you reading
this article will no doubt be familiar with. For
one reason or another, however, a majority of
horse trainers do not own and operate their own
facilities, but rather operate out of facilities owned
and sometimes operated by a separate party.
The common structure whereby trainers operate
out of facilities that are not their own may have
something to do with the seasonal nature of
the business, allowing horse trainers maximal
flexibility to migrate between climates during
peak seasons without being tied down to their
own property. It may also be because the best
horse trainers choose not to be bothered with
the day to day operation and maintenance of
an equestrian facility. Or it may simply be a
function of economics, in that many professional
horse trainers find it more cost effective not to
own and operate their own facility. Regardless
of the reason, one thing is clear; the business
relationship between trainers and property
owners is a contractual one that must be properly
documented to ensure both parties are protected.
A facility use license is a mechanism that can
be used to establish the parameters of the
relationship between a horse trainer and the
owner or operator of a facility. The license is
distinguishable from a lease in several ways and
can include elements that are hugely beneficial to
all parties involved. Failure to properly document
the relationship could result in an unwanted
liability burden, make it difficult for the trainer to
conduct his business, or keep the property owner
from being able to terminate the relationship
without jumping through statutory hurdles
designed to protect tenants.
A lease creates real property rights, which
depending on the laws of the jurisdiction, may
bestow upon the trainer certain obligations or
benefits unbefitting of the circumstances. For
example, a lease implies exclusive use and the
right to quiet enjoyment. For large facilities
used by multiple trainers unwittingly granting
one user exclusivity could lead to disputes that
disrupt operations and cash flow for the facility
owner or operator. In some cases, the trainer
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may be entitled to utilize a residence at the
equestrian facility, which absent a clearly defined
license agreement, could inadvertently create a
residential tenancy making it difficult for facility
owner/operator to remove the trainer if for some
reason the arrangement does not work out.
A well drafted facility use license agreement
protects the trainer and the facility operator.
It will define the term of the agreement, when
and how it can be renewed, and the rights and
obligations of all parties. Specifically, it should
detail what if anything the trainer pays to
utilize the facility for its business. In lieu of a
A facility use license agreement should include
several disclaimers, including without limitation,
an acknowledgment that it is not a lease, the
trainer is not a tenant, and it does not confer real
property rights to the trainer as a lease would.
Additional provisions might include insurance
requirements, a schedule for when and where the
trainer is entitled to conduct its business without
interruption at the facility, a provision mandating
that the trainer have all clients an