Leasing documents can be a nightmare to get through as some of our Traders are finding.
New SL Licenses are currently being distributed to Traders but trying to understand the clauses can be a daunting task. They have been written by accountants and lawyers (not used car salesmen as some would claim) and legal jargon can be very difficult to understand.
When a lawyer attempts to protect every possible difficulty that may arise in a lease or license, it often results in twisted expressions and sub clauses on sub clauses. By the time you have worked out what it all means you will probably wish you hadn’t started at all.
Licenses are legal documents and clearly you do need to understand your obligations before signing. There are some basics to check -
- How long is the license?
- What is the rent and any built in rent increases?
- Is the permitted use appropriate for your product range?
Remember that there are protections for tenants in common law and in the many regulations that cover the retail industry.
Questions have been raised about this latest round of license documents at QVM. Apparently one clause states that leave can only be taken in one week blocks although Traders can take single day absences under an amendment introduced a few years back. We have also heard that some licences include a 3 months bond although Victraders has been advised that 3 months would not be applied to open stands.
It would appear that there are some issues that need to be worked through and hopefully these will be sorted soon.
The bottom line is, that if you are really concerned about a license provision then, ask for an explanation either from your Precinct Manager or within your circle of business advisers.