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28 June 2018 / article

World Cup pop-up bars: what are they, what do they do, how to set them up?

Every evening during the World Cup in 2014, John invited some friends and family to watch football on a big screen in his garden. Since the neighbors and passers-by also invited themselves to enjoy the World Cup together, John decided to handle things differently during the World Cup of 2018 and to start a pop-up bar. His friend Mark is willing to temporarily lease one of his commercial premises, located on the market square, for an attractive rent.

This article is also available in Dutch and in French.

 

How can John and Mark draft their lease agreement? What are the applicable rules?

Applicable rules

It is now possible both in Flanders and Wallonia to conclude commercial lease agreements for a maximum duration of one year. Such short term lease agreements are not subject to the provisions of the Commercial Lease Act of 30 April 1951. Consequently, neither the minimum duration of 9 years for commercial leases nor the other mandatory provisions of the Act apply.

Duration

Short-term leases can be concluded for maximum one year. The short-term lease automatically ends at the expiry of the lease term. The tenant has no right to request a lease renewal as provided in the Commercial Lease Act. The parties can however agree to extend their short-term lease, in writing and under the same conditions, but without the total duration of the lease being longer than one year. In addition, the tenant can terminate the short-term lease at any time upon a one month prior notice.

Renovations

Unless otherwise agreed, the tenant has the right to carry out renovation works on the leased premises, provided that (i) the costs do not exceed one year's rent and (ii) the tenant notifies the landlord before the start of the works.

Assignment of the lease and sublease

Assignment of the lease and sublease are always prohibited.

Conclusion

John and Mark can conclude a lease agreement for the duration of the World Cup that will automatically end once the World Cup is over. Such a structure offers John the opportunity to test the viability of his business concept before making large investments. Mark can give a temporary purpose to his vacant commercial premises and receives an attractive rent.



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