Non-Competition Clause in a Lease Agreement
Lutz Partner Rechtsanwälte AG represented a leading company in the fitness and health industry in a tenancy dispute. The case concerned a long-standing lease relationship between the client as tenant and the owner of a commercial property as landlord. Under the lease agreement, any leasing to direct competitors—specifically fitness centres and physiotherapy practices—required the tenant’s explicit consent.
Contrary to this clause, the landlord approved the subletting of another unit in the property to a small fitness studio. The client only became aware of this shortly before the studio’s opening. This led to a dispute with the landlord, particularly regarding the question of whether the new tenant constituted a direct competitor.
Ultimately, an out-of-court settlement was reached, granting the client a rent reduction for the duration of the small fitness studio’s presence in the premises.