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  • #978421
    Alvin
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    • Total posts: 4
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    I’m new to Australia, so have no any experience in business and lease contract.

    Last November I bought a convenience shop in Adelaide, and my neighbor shop is a lunch bar. so there states “not to carry on activities that compete with the coffee shop within the same group of shops” on my lease contract.
    First I didn’t care these matters, because I thought the landlord restricted me and also restricted other shops as well. And on my contract from my previous owner there states “the lessor agreed not to allow other shops in the centre to sell supermarket grocery items & vegetables”

    But after I took over the shop, I found the lunch bar can sell everything, kinds of milk ,iced coffee, drinks, ice cream, confectionaries, snacks and so on. Every item with high-profits sold in my shop also can sold in the lunch bar.

    we are in a small shopping centre, all customers shopping here want to save time and convenience. For example, a customer goes to our shopping centre to have a lunch. The lunch bar sells both hot food and drinks, but I’m not allowed to sell hot food. The customer will not specifically come to my shop to buy drinks, because the lunch bar sells drinks as well.

    I discussed with my landlord but he said there is no provision in my lease for me to impose conditions on other businesses in the shopping centre. The comments restricting other shops were written on the lease, by previous owner, not landlord, are not binding and have no effect.

    Later, I found the landlord and the owner of the lunch bar are old friends.I consulted The Eastside BEC Team, responsible for managing small business. The stuff sent a member of South Australian Lease Management to my shop. He looked at my lease contract, said no problem, the reason is that I agreed with the contact.
    But I still think it is unfair to me. In the whole, are all the acts are legal? Is there no fair competition in Australia?

    Now it is very difficult to me to run the store, so only the extension of trading hours. Unsafe at night, last month, the store was robbed. I need help, who can give me viable suggestions, how can I do? Thanks a lot.

    #1106961
    Anonymous
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    Hi Alvin,

    I’m not the right person to help with your question, but I did want to welcome you to Flying Solo, and let you know that I’m sorry to hear that things haven’t been going so well for you.

    I hope someone is able to offer you some advice.

    Jayne

    #1106962
    JaneB
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    • Total posts: 324
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    You need help understanding what you’ve signed.

    Before you go get legal help – and it sounds as if you may need to – you could try asking this same question on this forum which mainly deals in real estate but has a specific section on commercial leases. Ask your question in the “Commercial Property” section. There are a couple of people there who are very experienced commercial property owners who may be able to give an opinion.

    #1106963
    Alvin
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    • Total posts: 4
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    JaneB, post: 118730 wrote:
    You need help understanding what you’ve signed.

    Before you go get legal help – and it sounds as if you may need to – you could try asking this same question on this forum which mainly deals in real estate but has a specific section on commercial leases. Ask your question in the “Commercial Property” section. There are a couple of people there who are very experienced commercial property owners who may be able to give an opinion.

    I’m new to australia,and new to this website.I don’t know how to transfer my post to other section.

    The lease contract was signed by my previous owner, I only read the contract from him, I don’t konw it’s different from landlord’s. And I also thought the conveyancer should have the responsibility to check my contract,but not.Because of my poor english, it’s much harder to me to deal with the issues.

    Can you give me a link to the “commercial property” section in this forum, I can’t find it.
    Thanks

    #1106964
    Anonymous
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    Hi Alvin,

    The link that JaneB provided was to a different forum, not Flying Solo’s.

    If you follow the blue underlined link in her post, it will take you to the other forum.

    I hope it all works out for you soon.

    Jayne

    #1106965
    Alvin
    Member
    • Total posts: 4
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    FS Concierge, post: 118759 wrote:
    Hi Alvin,

    The link that JaneB provided was to a different forum, not Flying Solo’s.

    If you follow the blue underlined link in her post, it will take you to the other forum.

    I hope it all works out for you soon.

    Jayne

    Thanks for your warm-hearted

    #1106966
    Kennethti
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    • Total posts: 415
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    Unfortunately unless the landlord has failed to comply with their requirements under the Retail Leases Act in South Australia, there is nothing much you can do.

    I am not a lawyer in SA and you should make your own enquiries in relation to the lease. You should speak to a lawyer before proceeding.

    Here is some additional information: http://www.ocba.sa.gov.au/businessadvice/customers/leases.html

    It may be that you have failed to make proper enquiries and conduct due diligence before proceeding with the lease. If that is the case then you’ve made a bad business decision.

    #1106967
    Stephen Forde
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    • Total posts: 53
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    So the lunch bar wants to go to war with you? Start selling lunch items, get in early and have rolls made up, put signs out the front for tradie lunch packs, get a coffee machine, increase your supply of fresh products.

    Look for similar businesses in the area like Asian Bakery’s (i love these places) and get a bulk deal on bread rolls. The retails at about 50c each so you should be able to find a deal.

    Fight fire with fire and don’t let them step on you just because you are new.

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