Pop-up shops

What’s a pop-up shop?

A pop-up shop is a temporary store that makes use of a vacant space in a retail precinct or shopping area.

If you own an online or home-based business, a pop-up shop could help you take things to the next level.

A pop-up shop might also be the answer if you own a space and need a tenant.  

Pop-up shops support the local business community by bringing new interest to the area and showing how a vacant shop can be used effectively.

Costs to consider for pop-up tenants

Before you sign a lease for a pop-up shop, you should understand what other expenses you might need to factor in.

Insurance 

Pop-up tenants are generally required to hold public liability insurance to cover potential liabilities to third parties for personal injury or damage to property. This type of insurance does not usually cover employees or volunteers. 

Other common insurances to consider taking out will depend on the activities being undertaken. For example: 

• product liability insurance
• professional indemnity insurance
• workers’ compensation insurance 
• contents insurance
• window insurance. 

Some insurers now offer specific insurance policies for pop-up shops to provide a combination of the insurances that you need. 

The Queensland Government provides resources that explain the different types of insurances. 

Occupancy licence and tenancy costs

Pop-up tenants can expect to pay a rental fee and utilities as part of a pop-up agreement. Utilities may include electricity, gas, water and Wi-Fi costs while you are in the premises. 

Pop-up tenants may also be required to contribute to rates, which are often called ‘outgoings’. Property owners pay rates on their properties and traditionally pass this cost on to long-term tenants.

To make the pop-up shop agreement process easier, Council has pulled together some sample pop-up clauses that you may wish to consider.

Retail and marketing

Retail costs may include: 

• shop fit-out – cleaning, painting, shelving/display furniture and visual merchandising 
• point of sale – store payment options such as EFT facilities. 

The Queensland Government provides a guide to effective shopfittings and creative retail displays. 

You also need to consider how you are going to promote your pop-up shop. You can't rely solely on foot traffic.

If your business has a strong online following, you can encourage customers to visit you in person. 

Marketing methods to consider include: 

• using Google Business Profile to provide opening hours, contact information, website and social media links and photos 
• promoting your pop-up shop through local Facebook community pages 
• letterbox drop to surrounding communities 
• paid online marketing such as Google Pay Per Click or Social Media Marketing. 

Sample pop-up occupancy clauses

These sample clauses support a short-term licence, where the tenant bears responsibility for the cost of utilities (but not outgoings).  

You should consider the length of term of any pop-up occupancy licence carefully. The Retail Shop Leases Act 1994 generally applies to pop-up occupancy licence terms and rights to extend the licence for a period of 6 months or more.

If you plan to use the sample pop-up clauses as a guide, you must ensure they’re suitable for the shopfront letting and make any necessary adaptations. You also need to seek independent legal advice, if applicable.

Council accepts no responsibility for use of, or reliance on, these sample clauses. If you choose to use these clauses, we suggest that you ensure the clauses are customised to reflect your specific agreement by including: 

• the licensor and licensee’s name 
• the address of the licensed area and permitted use 
• the rental fee 
• the amount or rate or arrangement for utilities to be charged (as agreed between the property owner and the tenant) 
• the amount of public liability insurance required of the licensee for the duration of the agreement 
• any terms/conditions specific to your situation 
• signature block for each party to sign. 

Helpful links