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It is important to know if your lease is classified as a retail shop lease as there are advantages for this kind of tenant. In order to determine if your lease is a retail shop lease see please follow this link. RSL

The Retail Shop Lease Act provides for a number of instances where a landlord will be required to pay compensation to a Tenant such as where the landlord:
1.         Relocates the Tenant’s business to an alternative premises;
2.         Significantly disrupts trading to the Tenant’s business;
3.         Neglects the landlords responsibilities to clean maintain and repair the building;
4.         Causes the Tenant to enter the Lease as a result of false or misleading statements or representations;
5.         Fails to issue disclosure or issues disclosure that is defective.

If you are a commercial tenant you probably already know that retail shop tenants have a higher level of protection than do other commercial tenants. A retail shop landlord is restrained from doing certain things.

You may be a retail shop tenant even if you do not operate a retail shop. It is essential that you are able to determine if you are entitled to the benefits of the act. A link to the Retail Shop Leases Act is set out here.

Landlords are not permitted to pass on the cost of preparing a lease to their retail shop tenant.

There are rules about the maximum proportion of outgoings that a landlord can ask a retail shop tenant to pay.

The landlord is restricted in the way that increases in rental can be imposed.

There are other benefits also.

What kinds of fees should a franchisee expect to pay? We have listed below some of the most common fees. It is not always true that you get what you pay for! In the case of franchising the best question may be to ask what you are getting (in the franchise agreement) rather than focus too heavily on what you are paying. But don't be fooled! The answer to this pertinent question can only be found in the franchise agreement. A franchisor who offers the world but, cannot back this up with written promises, in the franchise agreement is worth very little and should be paid accordingly.

1. What fees are payable? Consider royalties, promotion and advertising funds, initial fees, renewal and sale fees, legal fees, start -up costs - required equipment etc

2. How are fees calculated - are fees fixed or percentage?

3. When are fees Payable? Are you required to make payments before you sign and if so how is any refund given in the event that you do not proceed?

4. How are fees paid? Eg direct debit

1. Before you even think about it - You cannot franchise your business unless you have already achieved the following: (a) You must have a business that is profitable. It must be profitable enough to produce a good profit to your franchisee even after you deduct franchise fees, not only those ongoing fees but, the initial fee also. (b) Generally the business must have been in existence long enough to know that it can survive a range of economic environments. (c) The business must be systemised and the systems must be recorded in a detailed and professionally drafted operations manual. It is better that you complete this job yourself, but you will need someone to proof the document. Let me repeat. Detail is critical. (d) The business must be unique.