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.
