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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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I have a long-established hair-dressing & beauty salon within

Resolved Question:

I have a long-established hair-dressing & beauty salon within a large dept.store. I bought the business 3 1/2 years ago from the previous owner. I am a sole trader with a Licence to Operate signed on 29th November 2010 valid for 5 years.
In the middle of December 2013 I was informed that the dept. store would be having a relocation sale and would be closing at the end of March 2014. I am now having to relocate as the building is to be renovated and let out when a tenant can be found.
With 18 months still to run on my Licence I have not been given any written notice but obviously it is not good for my business to remain in an empty building. The family owned department store has now opened in new premises in a retail park.
Am I entitled to any financial compensation / relocation costs? Even though I have not received formal notice to leave the premises it is an untenable situation and will eventually lead to my staff leaving, no new business and gradual demise of my successful and hard-earned business.
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
Hello,

What does the licence to operate say about early termination?
Customer: replied 3 years ago.

It doesn't say anything specific about early termination - says it's for a period of 5 years with 6 months written notice. They have been asked for written notice but are not forth-coming with anything in writing. - so officially I have not been given notice to leave the premises. They are being careful and say that they have to keep the store open for my business until November 2015 - but this is not sustainable in my opinion. They have now decided to close the ground floor section of the store daily between 1pm & 2pm with a member of their staff there to unlock the door for our clients. Again - not conducive to business but keeping within their rights.

Expert:  UKSolicitorJA replied 3 years ago.
Thank you.

I am afraid that you are not automatically entitled to financial compensation or relocation costs in the circumstances and I would suggest that you negotiate some sort of arrangement with the owners such that your existing licence is transferred to the new premises, if you agree to relocating there, with a possible rent free period for the remainder of your licence term to compensate you for the costs of relocating.

However, if they refuse to do so, I am afraid you are stuck with the current licence over premises in which it is untenable for you to continue and you should simply draw the line and look into relocating to maintain your goodwill and reputation in your business rather than continue in premises which will not have the desired footfall and customers due to them closing down.

Hope this helps
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