Even if the pop-up lease is valid for a short period of time, liability and insurance coverage must continue to be included. Tenants and landlords should ensure that adequate and adequate insurance coverage is available, including general commercial liability insurance, property and personal property insurance and workers` compensation insurance. The agreement should also provide compensation to one party for damages caused by the other party`s failure to meet its obligations under the lease. Pop-up stores require shorter, often less complicated leases than traditional long-term leases. Although some provisions (for example. B monthly building fees or building rules) are probably not included in a rental contract for a pop-up, many of the basic conditions remain necessary and must be included for the protection of both landlords and tenants. Each of these provisions will be, to some extent, different depending on the purpose of each pop-up shop. It is important that the lease specify the authorized use of the premises, including limited hours or days of operation. Tenants will probably want some flexibility in the indicated use, which will allow them to adapt the goods or organize certain promotional events.
However, the lessor should be very specific with regard to the authorized use, so as not to violate the exclusive rights of other tenants, especially longer term or anchor tenants. If z.B. an existing tenant sells certain products, the landlord must ensure that short-term tenants do not sell the same or similar products. A landlord does not want to take the risk that a relationship with a long-term tenant will only be temporarily occupied. To avoid this, it may be useful to include in the rental agreement a list of all products and services for sale. The pop-up concept allows a new company to commercialize its activities and test the viability of a site and product before making a financial commitment to a long-term lease. This type of regulation also helps landlords, not only in the short term, by generating rent and filling a void that may not otherwise be occupied, but also by creating “buzz” for a particular shopping centre or building, thereby increasing customer traffic and attracting other, hopefully more sustainable, tenants to the site. Short-term leases also allow landlords to determine whether they want to keep a particular tenant for a longer period of time.