Are you planning to enter into a shop-in-shop agreement? This is what you should keep in mind.
The term “shop-in-shop” can be taken literally. It is actually a store within a store. A large retail shop or department store makes available part of the store to another shop. The other shop is allowed to exploit its brand in this particular part of the store. This formula is getting more and more popular and, for instance, Debenhams and the Dutch department store De Bijenkorf are typical examples of large (host) stores making increasing use of shop-in-shop concepts.
There are different kinds of shop-in-shop arrangements, such as concession, operating, co-operation and lease agreement. Mostly, the latter is chosen, where part of the store is (sub-) leased to the shop-in-shop keeper.
Lots of things are involved when entering into a shop-in-shop agreement. Not only the usual arrangements regarding, for instance, usage fee/lease, duration of the agreement and how the cooperation must be terminated will have to be considered. The host store and the shop-in-shop keeper would be well-advised to make agreements in writing on the following:
In case of shop-in-shop one may think of a clothes shop within a clothes shop or department store. In a large retail area often the different functions of retail, catering, service, and culture are combined. This way there will not just be “shop-in-shops” but also, for instance, “restaurant-in-shops”.
However, not all functions can be combined just like that. Both the lessee and the lessor have to take into account the regulations concerning blurring.
Would you like to learn more about shop-in-shop and what you have to keep in mind for the purpose of a shop-in-shop concept? Please contact us. We will gladly assist you!
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