A Pop-up Store, The New Marketing Concept for Retail Sales
Though temporary, the pop-up store — an increasingly popular marketing trend among emerging retailers — does have many of the rights and obligations of fixed businesses. Therefore, it pays to know what is permissible and expected before setting up shop.
Legal Requirements for a Pop-up Shop
Though these may vary depending on the state, pop-up shops are governed by many of the same laws and procedures as standard businesses. For example, pop-up stores are expected to abide by all city and state business operation licenses. Also, most pop-up stores are required tp sign a lease. The terms should be clear and respected to avoid legal problems after closing up shop. Finally, labor laws need to be followed, regardless of whether a store is open for a day or a month. When in doubt, consult with a legal counsel to ensure the law is followed.
Consider the Long-term Implications of a Pop-up Store
Pop-up store entrepreneurs may want to consider other issues as well before committing to a short-term lease. If the retailer plans on operating well after the pop-up has shut down, or if they plan on other temporary initiatives, they may want to consider incorporating their business. This can be complex but also a good way to shelter the business from personal debts and vice a versa. A lawyer can assist with the details of incorporation to maximize business and personal protection.
So, despite the provisional status of a pop-up store, it is still expected to comply with the law. By paying attention to the details, a temporary shop can ensure its successful short-term operation and the long-term security of its brand. Therefore, before getting caught up in the excitement of a pop-up shop, seek advice on how to effectively manage a store in the area.