How to Get Out of a Lease on a Retail Business
In the wake of the 2008 economic downturn, less profitable businesses have been slowly going under. Even in the event of an economic turnaround, there have been so many quarters of bad business that many establishments will continue to struggle. Getting out of a lease on a retail business can be difficult, but doing so will help merchants reorganize their lives.
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Instructions
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Getting Out of a Retail Lease
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1
Hire a lawyer. There are lawyers who specialize in business issues. When you have a lawyer representing your interests, a lease office will take you more seriously than if you're just some random leasee who wants out.
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2
Read over your lease contract to see if it cites any provisions about ending the lease early or reasons for ending a lease. The lawyer might be able to find some small points in it that stand out. If you are leasing at a shopping mall, however, there may be very few small loopholes. A lease involving a shopping mall typically has been revised by numerous lawyers to ensure it is airtight.
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3
Meet with the lease office manager and express an interest in getting out. He might have a list of people who are interested in leasing from him, so he might allow you to get out of the lease early so others can fill your space. In other words, there's no lost profit for the company.
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4
Offer a buyout. What this means is that you will pay a certain number of months in one lump sum. This will give the lease office a chunk of change, but more importantly, it gives the manager a few months so he can get the space cleaned and prepared for another client, thereby avoiding lost profit.
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If he won't let you leave early and won't take a buyout, discuss a sublet. This means that you will lease the property out to someone else and then pay the lease office each month. Some leasing offices allow this, but some are not interested.
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Tips & Warnings
If the lease office refuses to let you out in any way, you're going to be stuck paying the lease each month until the agreement is over.
