Contents
A brick and mortar store is a physical space where customers can visit in person. With the rapid digital transformation seen over recent years, many businesses have shifted partially or even entirely online. However, in 2025, brick and mortar stores continue to evolve by integrating digital enhancements into their in‐store experience, ensuring that the personal touch remains a key differentiator.
Therefore, if you’re deciding between starting an eCommerce store or operating a brick and mortar store, it’s wise to familiarise yourself with the advantages and disadvantages of each model before you commit. Understanding the legal implications of both setups will help you make a more informed decision.
In this article, we’ll explore the key differences between physical and online retail models and explain how your legals will align with each. Keep reading to learn more about what 2025 demands from traditional storefronts and their digital counterparts.
What Is The Meaning Of Brick And Mortar?
A brick and mortar store is a shop located in a real, physical address rather than operating exclusively through digital channels. These stores provide customers with the tactile experience of seeing, touching, and trying products before making a purchase. In today’s market, many brick and mortar retailers have also embraced an online presence to complement their physical operations.
Moreover, brick and mortar stores offer an experience that online platforms often struggle to replicate – from enjoying a coffee in-store to engaging with knowledgeable staff. In 2025, many physical retailers are even using technologies such as interactive kiosks and augmented reality to further enhance the in-person shopping experience.
It’s important to remember that while brick and mortar stores are inherently physical, most successful businesses now adopt an omni-channel approach, balancing both offline and online sales to maximise reach.
Advantages And Disadvantages Of Brick And Mortar Stores
There are several advantages and disadvantages to running a brick and mortar store. Your final decision will depend on your budget, business goals, and operational capabilities. Below is a summarised table of some key points to consider:
| Advantages | Disadvantages |
| Customers enjoy the experience of shopping: for instance, grabbing a coffee while browsing displays or dining at a nearby café enhances their visit. | Online shopping continues to be highly convenient, and many consumers appreciate the ease of purchasing from the comfort of their own home. |
| Successful brick and mortar stores have the potential to expand through franchising and build a strong local brand presence. | Physical stores incur higher overheads, such as rent, utility bills, and upkeep costs that an exclusively online store would not face. |
| A physical store can operate alongside an online platform, offering customers the best of both worlds. | Managing operations across both channels requires significant resources, additional staffing, and robust systems to ensure efficiency. |
| Brick and mortar outlets can reduce exposure to certain digital risks, such as data breaches, though they must still comply with Workplace Health and Safety and other physical regulations. (Do note that if you integrate an online component, you’ll still need well-drafted Privacy Policies, Terms and Conditions and Cookie Policies.) | In contrast, an eCommerce store typically requires less capital investment since there is no need for a physical space, but it also faces challenges such as intense cyber security risks and the necessity of maintaining online legal compliance. |
Brick And Mortar Stores Vs Online Stores
The table above illustrates that both brick and mortar and online stores offer distinct benefits and face unique challenges. While a physical store can offer an engaging, sensory shopping experience, online retailers benefit from lower start-up costs and broader reach. Many modern businesses successfully integrate both approaches to create seamless omni-channel experiences.
It’s crucial to note that even if your store primarily operates online, you will need to address additional legal aspects – such as eCommerce Terms and Conditions, privacy considerations, and data protection measures – to ensure compliance in 2025.
What Documents Do I Need For A Brick And Mortar Store?
There are a number of legal documents required to launch and operate a brick and mortar store. Below are some of the essential agreements and policies you should consider:
Do I Need A Lease Agreement For A Brick And Mortar Store?
Unless you plan to purchase the premises outright or operate your store from a home location (ensure that local zoning regulations allow this), you’ll need a Lease Agreement for your premises.
Your Lease Agreement should clearly outline the duration of the lease, rental amount, terms, fixtures and fittings, and any responsibilities for repairs. Given that commercial lease agreements differ substantially from residential ones, it’s important to get expert advice – our team at Sprintlaw can help review your agreement to protect your interests.
Should I Have Terms And Conditions?
While Terms and Conditions are commonly associated with online platforms, brick and mortar stores can also benefit from having them. These conditions set out what is expected of customers, for example, governing in-store behaviours like social distancing or mask-wearing.
Having a set of Terms and Conditions gives you greater control over who accesses your store, thereby helping you keep other customers safe and minimising your liability – a critical consideration in 2025.
Supply Agreements For A Brick And Mortar Store
It’s good practice to secure a Supply Agreement with your suppliers. This agreement ensures that relationships with product providers are clearly defined and that both parties’ interests are protected. It should address details such as:
- Description of the products to be delivered
- Delivery dates and times
- Payment methods and amounts
- Liabilities, warranties, and responsibilities
- Conditions for contract termination
- Exclusivity clauses
A robust Supply Agreement can help ensure the quality of your inventory and clarify the stock levels needed to run your business efficiently. If managing inventory proves challenging, you might also consider a dropshipping model as a way to reduce costs.
Franchise Agreement
If your store is thriving and there is a demand for it in other regions, expanding your operations through franchising might be an attractive option. A strong Franchise Agreement is essential to outline franchise royalties, fees, marketing funds, and the protection of your intellectual property.
This agreement ensures that any new outlet will operate in line with your established standards while safeguarding your brand.
Employment Agreements
Running a brick and mortar store typically requires a team, meaning that you’ll likely need to hire employees. Having well-drafted Employment Contracts is vital to setting clear expectations. These contracts should cover:
- Leave entitlements and other benefits
- Salary or wage details
- Working hours and shifts
- Intellectual property use
- Duties and responsibilities
- Rights of both the employee and employer
- Termination conditions
Do I Need A Licence Or Permit For My Brick And Mortar Store?
The licences and permits required will depend on the type of store you are opening. For instance, a shop selling pharmaceutical products will need different permits compared to a clothing retailer. In 2025, the regulatory landscape may vary across states – if you’re setting up in regions like South Australia, ensure you are compliant with local laws.
It’s important to clearly define the products or services provided by your business and secure any necessary permits before launching.
What Obligations Do I Have To Employees And Customers?
As a business owner, you have a duty to take reasonable care to ensure the safety and wellbeing of both employees and customers. This responsibility falls under Work Health and Safety obligations, which in 2025 require regular review and updates to risk assessments and safety protocols.
Work Health And Safety Obligations
Work Health and Safety requirements in Australia are overseen by Safe Work Australia, which sets and enforces the standards for ensuring a safe working environment. It’s essential that your business implements these measures effectively.
This might include:
- Providing employees with the correct safety equipment
- Eliminating potential hazards such as broken glass or wet floors (with clear signage)
- Regularly updating your risk assessments
- Designating a responsible person to oversee workplace safety
In the event of an injury due to negligence, you could face significant legal consequences. These obligations continue to apply even when employees work remotely, so it’s important to understand and implement appropriate measures across all areas of your business.
In today’s competitive market, many brick and mortar businesses are also investing in digital safety tools. For more insights into protecting your business, check out our detailed breakdown on regulatory compliance.
New in 2025: As evolving technology reshapes the retail landscape, many physical stores are now embracing integrated systems – such as click-and-collect, contactless payments, and virtual queuing – to streamline operations and improve customer satisfaction. These advancements not only enhance the shopping experience but also demonstrate a strong commitment to regulatory compliance and innovation.
Can I Franchise My Brick And Mortar Business?
If your business is performing well, expanding through franchising can be a lucrative opportunity. Franchising allows you to open new branches in different locations while maintaining a consistent brand standard. However, this approach also brings with it significant legal responsibilities as a franchisor, and a dedicated Franchise Agreement is essential.
Alternatively, if you’re merely looking to extend the reach of your products without replicating your full business model, you might consider a licensing arrangement. The key differences between franchising and licensing are well explained in our article on licensing vs franchising.
Do I Need A Commercial Lease For My Brick And Mortar Store?
Yes – if you’re renting a space for your store, you will typically need a Commercial Lease. Commercial leases in 2025 are often longer than residential leases to ensure stability, and their terms differ significantly.
Key aspects covered in a Commercial Lease Agreement include opening hours, noise restrictions, permitted use of the premises, maintenance responsibilities, and access to common areas. Modern leases may also feature flexible options reflective of current market trends.
Can I Sublease My Brick And Mortar Store?
In some cases, if you are under a Commercial Lease, you might be able to sublease your premises to another business. This can generate additional income, but whether subleasing is allowed will depend on the terms agreed upon with your landlord. Many lease agreements now include specific clauses regarding subleasing – so consult your contract and consider obtaining advice from our commercial lease experts if needed.
Should I Set Up A Pop Up Shop?
A pop up shop offers a flexible, short-term alternative to a permanent brick and mortar store. It provides many of the benefits of a physical presence without a long-term commitment to a lease.
Many eCommerce business owners use pop up shops to give their customers a real-world taste of their products and to test new markets before making a larger investment.
Even for a temporary setup, it’s essential to consider and secure the necessary legal agreements, including licensing and lease arrangements. If you need further guidance, our team can help outline the best legal framework for your pop up shop venture.
Key Takeaways
A brick and mortar store remains a valuable way to connect directly with customers. In 2025, many businesses successfully combine a physical presence with an online platform to create a truly omni-channel experience.
Before getting started, ensure that you have all the appropriate legal protections in place. Here’s a recap of what we’ve covered:
- Brick and mortar stores are real physical locations that can also operate online.
- They offer a unique shopping experience that includes sensory and social interactions.
- Establishing a physical store involves significant investment, including commercial leases, employment contracts, and safety compliance, unlike purely eCommerce models.
- Essential legal documents include Lease Agreements, Terms and Conditions, Supply Agreements, Franchise Agreements (if expanding), and Employment Contracts.
- Alternative models like pop up shops offer flexibility and lower commitment while still delivering a physical shopping experience.
If you would like a consultation on setting up a brick and mortar store or require assistance with any legal documents, please call us on 1800 730 617 or email team@sprintlaw.com.au for a free, no‐obligations chat.
Get in touch now!
We'll get back to you within 1 business day.
Top 3 Legal Mistakes
Book in a free consultation with us to discuss your legal needs.