Licence to Occupy Pop-Up Retail Space Within Shop or Other Building
This Licence to Occupy Pop-Up Retail Space Within Shop or Other Building should be used where the owner or tenant of a shop or other building wishes to allow another retail business to occupy part of the premises on a short-term basis. This could allow for trading of niche or seasonal products or could let the occupier test a new retail business without having to take on its own premises.
The Licence is suitable for shops, supermarkets, leisure centres or other buildings with spare space, subject to planning law requirements.
With pop-ups, the idea is to get the occupier in and trading as quickly as possible. The legal documentation is therefore much shorter than a standard commercial lease or licence to occupy and just covers the basics: rent, rates, use, termination. There is no service charge so the cost of any services or facilities provided by the Licensor must be included in the rent.
To avoid the Licensee being classified as a “tenant” and obtaining security of tenure (the right of business tenants to remain in occupation of premises after the expiry of a lease), this Licence should only be used for a term of 6 months or less and the Licensee should not be allowed to remain in the space once the Licence has expired. If the Licensee is to continue using the space after the Licence has expired, one of our Short Lease templates should be used instead.
A new Licensee is likely to want to fit-out its retail area before it starts trading. Our Fit-Out Consent Letter can be used to give the Licensor’s consent. If the Licensor is a tenant rather than the owner of the building, the Licensor’s landlord’s consent may also be required.
Clause 1 contains the definitions. The definitions of Premises and Licensor’s Building make optional reference to a plan. It is recommended that a plan is included, showing these areas edged in different colours, so that arrangements on the ground are clear.
Clause 2 is the grant of the Licence.
Clause 3 contains the Licensee’s covenants. These cover payment of the licence fee and other outgoings, use, alterations and the Licensor’s right of entry. There is a covenant to observe any regulations made by the Licensor for the Licensor’s Building. This gives the Licensor the opportunity to set out rules to supplement the covenants in the Licence. For an example see our template Regulations for Occupiers of a Multi-Let Building.
Clause 4 contains a covenant by the Licensor to allow the Licensee to access the Premises via the Licensor’s Building. There are also provisions regarding the provision of toilet facilities and other services – these should be adapted as required.
Clause 5 deals with termination of the licence and includes optional termination rights (break clauses) for both parties.
Clause 6 contains standard clauses including a provision regarding service of notices.
Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.
This Licence to Occupy Pop-Up Retail Space Within Shop or Other Building is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
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