Skip to Content Top

The Pop-Up Shop Legal Conundrum

Katie Charleston Law
|

While the last decade has been full of e-commerce platforms ready to browse, shop, and communicate with online retailers, there is a desperate need in today’s younger generation to have a shopping experience. Smaller boutiques regularly engage in pop-up shops, but even retail giants like Bloomingdales and Apple see the benefits of such short-term storefronts.

Pop-up shops can be a great add-on to an overall marketing strategy for both the retail owner as well as a city center, mall, or venue displaying the pop-up shop. The venue gets great, although temporary visibility from the pop-up shop can create a sense of urgency to get consumers to the location. Similarly, the retailer gets the benefits of a short-term commitment to a space and also enjoys the sense of urgency created for the consumer to view and purchase its products.

What must not be overlooked is the laws that apply to such temporary operations. Just as a landlord and tenant would engage in negotiations and the execution of a contract that would cover essential terms of the rented space, such as length of use, allowable operations, insurance requirements, and price, so too should the pop-up shop and venue engage in such legalities. Without such essential terms defined in a written agreement, both parties could be set up for disaster and potentially litigation. Even worse, if the pop-up shop has been advertised and then is cut short due to a disagreement, both the venue and shop could lose followers and customers.

In addition to a rental agreement, pop-up shops also need to review and apply for applicable and required city or community licenses. Many cities require a business license to track sales and use taxes. Depending on the pop-up shop and the type of event, the pop-up shop may need other licenses, such as a liquor or occupational license. Beyond licensing and rental agreements, pop-up shop owners should also consider the laws around consumer data collection and privacy, just as they would if they were a brick-and-mortar storefront.

As retailers continue to explore the benefits of such pop-up shops, it is important they don’t overlook the laws that apply to business regardless of the platform.

The post The Pop-Up Shop Legal Conundrum appeared first on Katie Charleston Law, PC.

Categories: 

Contact Us Today

Get Experience On Your side

Call (463) 223-4943 or fill out the form below to get started with a consultation.

  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.
  • By submitting, you agree to be contacted about your request & other information using automated technology. Message frequency varies. Msg & data rates may apply. Text STOP to cancel. Acceptable Use Policy
  • We Research Thoroughly

    Detail-oriented, we leave no stone unturned in our pursuit of favorable outcomes for our clients--and often find information  you didn't know you needed.

  • Simplifying the Process

    We explain legal concepts in plain language, guide our clients through each step of the process, and handle the details so you can focus on what matters most to you.

  • Comprehensive Approach

    With holistic service from beginning to end, we stick with our clients through the lifetime of your assets, including litigation if necessary.

  • Responsive & Reachable

    We prioritize timely communcation; our team is responsive and accessible, and you'll never be left wondering where your case stands.