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What's the difference between a shop with property rights and a shop with owner's property rights, such as what risks, catering license and so on?
In fact, there should be no difference in renting shops; However, in reality, some details have to be considered: when facing a property company (especially when the property company is the developer's own property), it is impossible for the developer's shop to negotiate to pay the property fee, and the owner can also negotiate; In theory, the developer's shop will be cheaper than the owner's rent; Developers' lease contracts will be more rigorous and have few loopholes, but the risk of default will be reduced, and the signing time may generally be longer, especially in the catering industry. Considering the upfront cost, it is necessary to sign a contract for at least five years, and it is best to sign it for more than eight years if the area exceeds 500 square meters.
However, rental shops will also encounter the same risk, that is, property owners will sell shops. Therefore, no matter whose store you rent, it must be clearly stated in the contract that "if the property owner resells the store within the lease period, the property owner needs to ask the buyer to recognize that this lease contract will continue to be valid", otherwise there will be endless troubles.
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- Ministry of Finance, State Taxation Administration of The People's Republic of China [2003] 16 document.
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