SumoSalad’s voluntary administration plan reportedly paying off in Westfield rent dispute: Are franchises finally done with shopping centres?

Healthy food franchise network SumoSalad says it’s close to brokering a deal on rents with Westfield after placing two of its leasing entities in voluntary administration in June, but franchise experts say while the move is a bold one to assert the rights of franchisees, shopping centres are becoming a less attractive place to do business anyway.

In June SumoSalad chief executive Luke Baylis told SmartCompany the network wanted to work “amicably” with its landlord, but the decision to call in administrators for the companies that cover the rental agreements for 12 to 14 SumoSalad stores was done to force the hand of Westfield owner Scentre Group to come to the table on rent negotiations.