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| June 20, 2009 | |
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Tenants want new clause
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| By Irene Tham | |
| STORM in a coffee cup?
Not so, judging by the concern of at least four mall tenants who now want their landlords to stay out of their line of business. They want this pledge in writing, under new proposed protection clauses in their tenancy agreements. It was a 'mini storm' over the entrance of Far East Organisation into the same business as some of its tenants at its malls that led to this concern. The four, all coffee joints and eateries, told The Sunday Times that the tenancy agreements should now have a 'data confidentiality' or 'non-competitive' clause. They felt that landlords can gauge how lucrative their businesses are from the 'sensitive' monthly or daily sales data submitted for the purpose of calculating rent. Newer malls have even automated this process, with a central point-of-sale (POS) computerised system. It all began when Far East's subsidiary, Kitchen Language, opened sandwich shop Quiznos last December and coffee joint Tully's in January - both at Far East Square. Kitchen Language also opened a Tully's outlet in another of its malls, West Coast Plaza, in November last year. In a Sunday Times report on June 7, sandwich chain Subway, which has an outlet at Far East Square, claimed that it had suffered a monthly 'double-digit' dip in sales since Quiznos opened. Subway also felt that there could be a conflict of interest, such as the landlord taking up prime space for its own businesses. It is currently in talks with Far East to include a data confidentiality clause in its tenancy agreement. Read the full story in tomorrow's edition of The Sunday Times. | |
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