Relocation clause
What it means
Sites do not last forever, leases end, centres redevelop, trade shifts. A relocation clause governs whether you can (or must) move your outlet, whose approval is needed, and who pays for the new fit-out.
It matters most in retail and food, where the site is central to the business. A weak relocation clause can leave you stranded if your location becomes unviable.
In practice
Ask what happens if you lose your lease or the location declines. Check whether the agreement allows relocation, whose consent is required, and who bears the fit-out cost of a move.
A real example
When a shopping centre schedules redevelopment, a franchisee relies on the relocation clause to move to a nearby site with the franchisor's approval, negotiating a shared contribution to the new fit-out.
Relocation clause, FAQs
What is a relocation clause in a franchise agreement?
A term covering whether and how a franchised outlet can move to a new site, whose approval is needed, and who bears the cost, important if your lease ends or the location declines.
Who pays to relocate a franchise?
It depends on the clause. Often the franchisee bears the new fit-out, but this is negotiable. Check before signing, especially for centre-based sites.
See the full franchise glossary, the Fee Index or our buyer guides.