Premises Occupancy Models for Franchised Retail Businesses in Australia: Factors for Consideration

Abstract

Among the most significant aspects of conducting a retail business are the costs, risks and liabilities associated with the retail site. Franchising injects a further level of complexity into the concept of a retailer trading from premises. The property interests in the retail site take many different forms. The diverse arrangements have a range of ramifications at law. This article identifies the most common occupancy models for franchisees in Australia and addresses issues that arise from each.

Keywords: franchise, retail lease, premises, licence, sub-lease, compulsory acquisition, town planning, administration, insolvency, franchisor bankruptcy, Australia

JEL Classification: K11, L22, L81, M55