Termination of a commercial lease in France: A lawyer's secrets to safely exit the lease — a complete guide for SME managers and CEOs

Termination of a commercial lease: definitions and challenges

The termination of a commercial lease refers to the early or scheduled end of the rental contract for premises used for a commercial, craft or industrial activity. The question is of particular importance for SME managers: the forecasting and management of the lease can condition the sustainability of an activity, access to a new strategic location or the limitation of financial risks.

Understanding the legal subtleties surrounding termination and mastering the procedures allows you to make better decisions for your business.

Why is the termination of a commercial lease a key issue for SMEs?

• Release or transfer your business according to opportunities.
• Limiting the financial impact of a location that has become unsuitable.
• Secure the end of the contract to avoid any sanctions or disputes.

Concrete example : A restaurant owner in Paris, having experienced a drop in attendance after the health crisis, wants to reduce the area of his premises. The commercial lease obliges you to pay the remaining rent except in case of controlled termination.

Terms and conditions for terminating a commercial lease

Possible cancellation methods

• Amicable termination (by agreement of the parties)
• Triennial cancellation by the tenant (“right of exit” every 3 years)
• Judicial termination for serious breaches
• Cancellation by operation of law (resolution clause)

What are the reasons for terminating a commercial lease?

French law provides a broad framework for termination, in particular through article L145-4 of the Commercial Code and consistent case law.

Reasons for termination by the tenant

• End of a three-year period
• Retirement or disability
• Permanent cessation of activity
• Serious misconduct by the lessor (e.g. premises unsuitable for the intended destination)

example : A manager decides to stop his activity due to retirement. It notifies the lessor in accordance with the formality provided, the latter cannot oppose it.

Reasons for termination by the lessor

• Failure to pay rent regularly by the tenant
• Non-compliance with contractual obligations (works, destination of premises)
• Irregular transfer of business

How do I cancel a commercial lease before the term expires?

Any cancellation before the due date requires strict conditions.

The three-year termination by the tenant (the “right to leave”)

The tenant can cancel the lease at the end of each period of three years. This right is of public order but can be regulated in its terms and conditions.

Model of a standard clause :

“The lessee may, at the end of each three-year period, terminate this lease by registered letter with acknowledgement of receipt or bailiff's act, subject to six months' notice.”

Early termination for exceptional reasons

• Retirement, disability: the tenant has a personal right to terminate at any time, subject to six months' notice.
• Cessation of activity: requires that the cessation be permanent and total.
• Case of amicable agreement: often used in practice (rely on a formal transaction integrating all aspects — rent, key delivery, possible indemnities).

How do I end a commercial lease 3 6 9?

The 3-6-9 lease is a contract with a minimum duration of 9 years, but it can be cancelled:

• Every 3 years (article L145-4 of the Commercial Code)
• at the initiative of the tenant (triennial, retirement, disability)
• at the fault of one of the parties (resolutory clause or referral to the judge)

The procedure requires the tenant to notify the lessor by registered letter with acknowledgement of receipt or bailiff's act, with 6 months' notice. Any derogation from the tenant's three-year law is void, with exceptions (construction leases, monovalent premises leases, leases for exclusive office use).

Concrete example : a ready-to-wear entrepreneur wants to move according to the seasonality of his sales. He terminates at the end of the 3rd year by sending an LRAR on time.

Specificities of termination at the request of the tenant

Termination of the commercial lease by the tenant

• Cancellation at each three-year deadline with a minimum of 6 months' notice.
• Retirement or disability implies the possibility of terminating at any time under the same conditions (notification, notice).

Termination at the initiative of the owner

Terminate a commercial lease by the owner

• Use of a cancellation clause (default of payment, impairment of enjoyment, etc.)
• Referral to the judge in case of serious breaches
• Refusal to renew at the end of the term (accompanied — except for serious misconduct — by eviction compensation for the tenant)

example : a lessor who notices persistent arrears has an order to pay issued, then declares termination by applying the resolutory clause.

What are the specificities when cancelling after 9 years?

At the end of the 9 years, both the tenant and the lessor can refuse the renewal. The lessor must offer eviction compensation, unless he can invoke a legitimate reason (repeated non-payment, serious misconduct). In the absence of leave, the lease continues tacitly.

example: the tenant is not obliged to explicitly state his desire not to renew: he can simply leave the premises by informing the lessor before the end date. However, notice must be respected.

Termination for cessation of activity

The permanent cessation of activity by the tenant allows early termination, but the judges are strict about the reality and irreversibility of the closure. Simply reducing activity is not enough.

Educational framework : Temporary cessation or reduction in turnover does not allow termination: only effective cessation (removal from the register, liquidation, etc.) is allowed. Therefore, provide legal support during this process.

Cancellation outside of the three-year period

The principle is that the tenant cannot cancel outside of the three-year periods, except in exceptional cases: amicable agreement, retirement, judicial liquidation or specific lease clause.

Comparative table of reasons and procedures for cancellations

Commercial lease cancellation FAQ

What are the reasons for terminating a commercial lease?

The recognized reasons are: three-year deadline, fault of the lessor or tenant, retirement, disability, cessation of activity, amicable agreement.

How do I cancel a commercial lease before the term expires?

You need: an amicable agreement, retirement, disability, or proven fault. Triennial cancellation remains the standard mechanism.

How do I end a 3-6-9 commercial lease?

By notification to the lessor, six months before the three-year deadline, by registered letter AR or bailiff, or by amicable agreement.

How do I cancel a 3-year commercial lease?

Same procedure as above: notice of six months, LRAR or bailiff, possible justification if you invoke a particular case (e.g. retirement).

Can we get a sample cancellation letter?

Here is a simple model:

“I, the undersigned [Name], tenant of the premises located at [Address], inform you of my desire to terminate the commercial lease, in accordance with Article L.145-4 of the Commercial Code, at the expiration of the current three-year period. I will give six months' notice from the date of this notice.”

Can the tenant cancel the contract at any time?

No, except for exceptional situations (retirement, disability, judicial liquidation, amicable agreement).

Can the landlord end the commercial lease at any time?

No: he must respect the resolution clause or the term of the lease, and in principle incurs eviction compensation unless the tenant is seriously at fault.

What are the consequences for the tenant in case of termination before the term?

Risk of being ordered to pay the remaining rents except for a three-year right or legitimate reason. Read your lease carefully and consult a lawyer before making any decision.

How to cancel after 9 years of lease?

By voluntary departure (6 months' notice) or by refusing renewal, subject to eviction compensation, except in the case of serious misconduct.

What in case of cessation of activity?

It must be final, proven and often justified before the judge or the lessor. A simple drop in activity is not enough.

Can we cancel outside of the three-year period?

Only with the agreement of the lessor or in certain cases: retirement, disability, liquidation, or specific clause.

Can you cancel due to retirement?

Yes, at any time with 6 months' notice and supporting documentation.

Points of attention to properly anticipate the termination of a commercial lease

• Prefer amicable negotiation to avoid long and expensive disputes.
• Set out the terms and conditions in the contract as soon as the lease is written (exit clauses, three-year terms, resolutions, etc.).
• Secure the proof of all procedures (registered letters, bailiff's reports, written exchanges).

Box: Example of a resolutory clause to include in your lease

“It is agreed that the non-payment of a single term of rent or a single cent of the charges, at its due date, as well as the non-execution of a single clause of this lease, will result, one month after an order that has remained without effect, the automatic termination of this lease, please the lessor to continue with its effect.”

Importance of advice from a lawyer

Commercial lease law is a regulated subject, with significant and sometimes irreversible consequences. Each situation is unique and requires tailor-made support. The advice of a lawyer is essential to anticipate risks, validate your decisions and secure your procedures — whether you are a landlord or tenant.

Article written by Guillaume Leclerc, lawyer in commercial contracts and commercial litigation in Paris.

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