Today, let's talk about mineral water! More precisely, about running it under a business lease.

The Corsican regional authority recently acquired the production facilities of Orezza mineral water, in addition to the land and the business itself. The whole is currently run under a business lease (location-gérance).

A business lease is a contract by which the owner of a business (fonds de commerce) entrusts its operation to a manager, who keeps the profits and bears the losses.

A business lease has advantages for the lessee-manager, who does not have to buy the leasehold rights or invest in equipment.
For their part, the owner receives a fee while keeping ownership of the business, and owes no compensation when the lease ends.

At the end of the contract, the lessee-manager has no right to renewal and must return the business to the owner.

A business lease requires a contract and publication formalities.
At David Notaires, our teams are trained in commercial and company law and can help you draft the contracts relating to the operation and transfer of your business.

Do you have any questions about business leases?

PS: In the case of Orezza water, the business lease makes it possible to prepare for the current lessee-manager to stop operating, so that the public interest is taken into account in the future.
In most private-sector cases, however, a business lease is rather a way of preparing a future transfer: the lessee-manager can check that the business is viable before buying it.