Short Term Licence to Occupy for “Pop-Up” in Self-Contained Retail Unit

Licence to Occupy for Pop-Up Shop in Self-Contained Retail Unit

PROP.SHO.21
This Licence to Occupy for Pop-Up Shop in Self-Contained Retail Unit should be used where the owner of shop premises wishes to allow a Licensee to use the premises on a short-term basis, perhaps for seasonal trading in the run up to Christmas or for the licensee to test the water with a new retail business. It is suitable for all retail uses including shops, sandwich bars and hairdressers.

With pop-up shops, 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 if any services or facilities are provided by the Licensor the cost of these 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 to Occupy 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 occupier is likely to want to fit-out the shop before it starts trading. Our Fit-Out Consent Letter can be used to give the Licensor’s consent.

Clause 1 contains the definitions. The definition of Premises makes optional reference to a plan. It is recommended that a plan is included, showing the Premises edged red, so that the extent of the Premises is 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.

Clause 4 contains a covenant by the Licensor to allow the Licensee to access the Premises via the Licensor’s adjoining land (if necessary).

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 for Pop-Up Shop in Self-Contained Retail Unit is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

Once you have purchased access to the appropriate document folder click on the “Download Document” button below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.
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