A Brief Introduction About the Kiosk Leasing
In the times we live in, entrepreneurs are coming up with new ideas every day to begin their business and to become successful. While many other businesses require a lot of work and money, there is always an option of starting small but effective. Kiosk or wheel stores in malls have emerged an idea that has successfully been working for many people. It requires good business skills and good ideas but, once set up with the right thought process, it works wonders.
The benefit of renting a kiosk is that you can move it. Most mail owners lease out kiosks, and depending on the floor and footfall of people; they charge money. Kiosk for sale option is also available, but it is suggested that you first start by leasing a kiosk. Kiosk for rent is also a perfect solution for first-timers.
Kiosk Leasing is an agreement signed between the mall owner or kiosk owner and the borrower. It works like any other lease agreement. It contains all the crucial information related to the lease, and it protects both parties. It is also a legally binding agreement. Renting out a kiosk also works in favor of owners as they manage to earn some additional money through monthly rent. Other names for this Agreement are Kiosk Leasing Contract or Kiosk Lease Agreement.
Who Takes the Kiosk Leasing? – People Involved
The agreement is signed between the lessor and lessee or the lender and borrower. The lender can be any mall owner or landlord of a kiosk. A lessee can be any individual or organization who wants to sell something, advertise something or want to start a new business.
Purpose of the Kiosk Leasing – Why Do You Need It?
A Kiosk Lease can be small-term or long term, but in most cases, the mall owners want to try out how the business grows and if it works well for the mall too, then they keep the business for a more extended period. Kiosk Leasing Agreement is required to ensure all details are in place, and both parties are legally bound. It also protects both parties.
Here are some more reasons to sign such an agreement –
- To start a small business
- To give exposure to your business
- To test out if your business idea is working for the mall audience
- To outline all the details of lease
- To makes the leasing legally binding
- To ensure there are no misunderstandings and confusion
Contents of the Kiosk Leasing– Inclusions
This is signed between the lessee and lessor will have some basic details of both parties. Basic details include name, phone number, address, etc. The Agreement will also have all the details regarding the Kiosk and its placement in the mall or any other complex. It should further include the details about the business that will run by the lessee through Kiosk.
Like any other leasing agreement, the agreement should include lease terms, payment methods, late payment fees, and other rules and regulations such as cleaning policy, maintenance policy, garbage policy, etc. Additionally, if security is involved, then the agreement must outline all the details related to it. Other important inclusions in the agreement are all important dates, governing laws, dispute resolution methods, and force majeure clause.
How to Draft the Kiosk Leasing?
A kiosk can be kept in a mall, complex, hospital, or any other public building. It can be in an open area or closed area. It can be either moving or non-moving. The business owner must discuss all such crucial details with the mall owner before drafting the agreement.
Here are some more details that should be considered while drafting the agreement.
- The lessee should also check if the mall owner has all the right permits or not. Sometimes, because of the owner’s mistakes or irresponsible behavior, the lessee’s business gets affected.
- If the lessee is starting a brand-new business, he must research thoroughly and then choose a mall that gives the maximum business potential.
- Placement of Kiosk also matters a lot for the success of the business because, in each mall, the audience can be different. Depending on the kind of audience, the lessee is targeting, he should finalize the mall.
Negotiation Strategy
For new business owners, it can get tough to negotiate with the lessor. However, you must always remain that bargain, and negotiations are the backbones of your business. To get a good and fair deal, you must always make a strategy to negotiate. You can also take the help of someone who can negotiate for you. Negotiations involve negotiating for the rent, late payment fee, the term of the lease, placement of Kiosk, etc.
Benefits & Drawbacks of the Kiosk Leasing
A lease agreement not only makes the lease process legally binding but also protects all the parties involved. Here are some advantages of Kiosk Leasing Agreement –
- It is a single point reference for both parties
- It lists out all the crucial details about the lease
- It protects both parties
- It creates business opportunities for both the parties
- It gives dispute resolution method
- It ensures a smooth procedure
A well-drafted agreement doesn’t create issues for either of the party. It is risk-free and ensures safety. It also sets forward the rules, regulations, and obligations of each party very clearly. There are no drawbacks to using this agreement.
What Happens in Case of Violation?
In case of any violation by either of the party, mediation is the easiest thing to do for another(1). However, since the agreement is a legally binding document, parties can also approach the court in case mediation doesn’t work. Both parties are well within their rights to approach the court. It is suggested that both parties should abide by the agreement and its clauses to avoid legal action and disputes. A healthy relationship between parties ensures a good business deal.
This leasing prices are different in each state. Prices also depend on the type of Kiosk, location, audience, etc. While choosing the Kiosk and mall, the small business owner must do his or her research well. They should study the market well and then finalize a public place such as a mall. In the beginning, both the lessee and lessor can agree to sign an agreement for a small period. By doing so, the business owner saves himself or herself for any risk. A mall kiosk idea is very crucial for any entrepreneur, as well as the mall owner.