Business Goodwill

[tamborine]

Landlord plans to sell block of 5 shops to developers in 3years. Our 20+years of goodwill is now nil. Is there any recourse we can take?

[EDDIE51]

Is one of the shops yours? What do you want to do?
The shop's owner is allowed to sell if he/she wants to.

[rockyroad]

Your Landlord has given you three years notice, and depending on the terms of your rent/lease there is nothing you can do. I don't understand the 'goodwill' bit. paying your rent/lease is not 'goodwill' its business.

[hc4361]

Statutory compensation if you have leased the premises for at least five years under the Landlord and Tenants Act 1954.

http://www.bristows.com/assets/pdf/Compensating%20Business%20Tenants.pdf

[tamborine]

Sry, got called away. Yes, my business is goes too. Thanx for pdf HC, will open asap.

Selling a business includes rent but most gain is goodwill earned from building up the business. Hopefully there is compensation to glean. Am not sure where we go atm.

[rockyroad]

Why can't you relocate your business and take your goodwill with you? You have three years to find new premises. A local shop in our town had the same problem trading in a small arcade that was going to be changed into an Argos. They found a shop in a different location and carried on trading, in fact it was a good move and they are still trading 20 years later.

[tamborine]

Thats do-able rocky but setting up is costly & am hoping some compo could pay.

[Zacs-Master]

Does your contract mention anything about such a situation and where 'goodwill' falls in such a situation?

[EDDIE51]

Simply moving your stock and fittings to another location should not be outrageously expensive. Start looking for a new location, you may well find one that is better or cheaper rent.

[Zacs-Master]

eddie there are a few more expenses in moving a business:

Lighting alterations / new signage / change of address on paperwork etc

[tamborine]

Its a lease with the landlord with no mention of goodwill. A tenant can sell a lease, stock & goodwill. The landlord approves the new lessee or the vendor guarantees them.

[tamborine]

We had to rewire, replumb, decorate etc etc to start here

[EDDIE51]

You can still look on this as an opportunity rather than a problem.

[hc4361]

If I have interpreted the law correctly you will be entitled to statutory compensation to cover the costs of relocating.

Moving a business is not the same as moving house - extra costs are incurred including signage/shop front, shop fitting, change of address on letterheads/business cards, amending website etc.

[Zacs-Master]

If you didn't get anything included in your contract, you can hardly complain about the loss of it after the fact.

[Zacs-Master]

^^^goodwill

[hc4361]

Zacs, the contract cannot override the law. The law states that tambo is entitled to compensation.

[tamborine]

Landlord has confirmed he will compensate us on vacant acquisition. Terms to be agreed. Meanwhile annual rent increases = sooner the better!

22 people with families to relocate in 3years is more a tidal wave than mere ripple in this pond.

[hc4361]

I am pleased, tambo. Hopefully this will all work out for the best :)