CEC
ARTICLE
ARE YOUR PREMISES
LEGALLY FIT?
Your premises are both one of the biggest assets and commitments
in your fitness business. How do you get them right?
WORDS: LEON PONTE
osition/location: Check. Size:
Check.
Layout:
Check.
Commencing
rent:
Check.
Potential: Check!
P
Where do I sign?
We all get excited about getting something
new, no matter how young, old or
experienced we are in what we do. We don’t
always get it right, but we can generally
cover most one-off mistakes (as long as we
learn from them).
However, given the value to our business
on the one hand, and the ongoing typically
large financial commitment of most leases
of premises on the other hand, entering
into a lease is likely to be one of the biggest
commitments you make in relation to your
fitness business. It is therefore important to
get it right.
In this fourth instalment of ‘Legally fit’,
we look at some of the issues you should
consider before you enter into a letter of offer
or lease for, or take possession of, your new
premises. Similar issues also apply if you
are buying your premises. To read previous
articles in this series search ‘Legally fit’ at
fitnessnetwork.com.au/resource-library.
Retail lease
Most (but not all) leases for fitness facilities
will be what are known as a ‘retail lease’ or a
‘retail shop lease’. A ‘retail lease’ is a type of
commercial lease relating to premises which
(meet certain requirements and) are used for
the provision of retail goods or services to
the general public, such as fitness services.
Each State and Territory has laws
protecting retail lease tenants, but the laws
vary among them and some also place
requirements on retail tenants, which if
not followed can potentially have adverse
consequences for the tenant. It is important,
therefore, to familarise yourself with the
retail leasing laws and requirements in your
State or Territory if you propose to enter into
a retail lease.
Letters of offer
Prospective tenants will sometimes be
presented with a letter of offer to lease
premises as a precursor to entering into
a formal lease. However, such a letter of
offer could potentially constitute a legally
binding agreement to lease the premises,
and it is therefore impo