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14

Dec

2020

Pop Up Shop License Agreement

By Erik. Posted in Uncategorized | No Comments »

License for leasing: Given the short-term nature of the agreement, the agreement is likely to be more of a license than a lease. As such, the lessor (“the licensee”) gives the retailer (“the licensee”) permission to enter and use the space as a pop-up store for a limited period, subject to the payment of rent (“royalty”) and certain conditions contained in a written agreement (“licence”). As a “license,” the licensee generally has more flexibility than in the case of a real estate rental and, therefore, the taker (tenant) generally has less protection than in the case of a traditional tenancy agreement. It is the compromise on the short-term use of space. The growing popularity of pop-up stores has been a blessing for homeowners who are fighting for vacancies amid the explosion of online shopping and the simultaneous increase in stationary store closures. And it`s no longer a niche. Storefront.com estimates that pop-up retail has become an $80 billion industry. Although landlords prefer long-term leases with established tenants, many homeowners recognize value in the experienced retail trade. Pop-ups create buzz and help boost shopper traffic. And successful pop-ups can become longer-term tenants with bigger footprints. While pop-ups have many advantages, landlords and tenants should consider several legal issues inherent in these agreements. The way people buy and customer demand has changed enormously. Customers continue to look for variety in their shopping experience, particularly due to the increasing use of online shopping.

Physical stores need to offer something else to attract customers, and pop-up stores are becoming increasingly popular to attract customers. The most important legal analysis and whether an agreement is considered a lease or a licence depends on the access and language of exclusive control of the agreement. A good indicator of a licence is a provision stating that “the licence granted under the licence is a non-exclusive, revocable and revocable licence at any time, which may be terminated as it sees fit by the licensee and is not considered a rental interest in favour of the licensee with respect to the associated space or services under the licence.” As you can see, it is important that the owner of the property retains control of the space, so that security measures such as electronic keyrings and other electronic access methods, which can be controlled and unilaterally disabled by the owner, are a powerful indicator of a licensing agreement. In addition, landowners (licensees) should strive to provide all services and furniture for the space, with an express provision in the license agreement stipulating that the services and furniture are the property of the licensee and not the ownership of the purchaser. Condo/Co-op Board Issues: In a metropolitan environment, the sales area may be on the ground floor of a building that is a condominium or co-operative, and is therefore subject to certain “general rules” or charters that require a tenant to obtain prior approval from the housing or co-op committee before certain uses, such as installation. B new signs, the organization or organization of renovation events. Ideally, the licensee should require the licensee to apply for all these authorizations as a condition for the payment of royalties (rents) to the taker.

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