Top 5 things to consider when buying, selling or leasing a Farm Shop
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Simon Quinton Smith, Director at Quinton Edwards
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Hugh Fearnley-Whittingstall, Patron of the Farm Retail Assoication
Specialist advice from Quinton Edwards to mark the launch of the Farm Retail Association’s ‘More Than Food’ campaign
Hugh Fearnley-Whittingstall, Patron of the Farm Retail Association, is fronting the More Than Food campaign.
With a focus on tasty, local food and sustainable retailing, farm shops have become key players in the rural economy. Generating an estimated £1.4 billion in sales and employing around 25,000 people, there are approximately 1,500 farm shops across the UK*.
But whether you’re planning to buy, sell or lease a farm shop, it is essential to understand the unique dynamics of this specialist market.
As official sponsors of the Farm Retail Association’s newly launched More Than Food campaign, Quinton Edwards – chartered surveyors with over 35 years’ experience in the garden centre and farm shop sector – have advised many businesses on the establishment of farm shops.
Here, Quinton Edwards outlines the top five factors every operator, investor or landlord should consider:
1. Freehold vs Leasehold – Understand Your Position
Most farm shops operate from leasehold premises, particularly when based on farms or within garden centres. Freeholds are rare and typically capital-intensive. Understanding valuation methods – including asset value, trading performance and concessionary income – is key to achieving or paying a fair price.
2. Lease Terms and Security of Tenure
If taking a lease, pay close attention to duration, rent structure, renewal rights and your obligations. Many farm shop leases are contracted out of the Landlord & Tenant Act 1954, offering no automatic right to renewal. Short leases may limit resale value, while “put and keep” clauses and restricted alienation rights can create long-term liabilities.
3. Planning Permission – Check for Restrictions
Don’t assume broad retail consent. Many farm shops are tied to conditions restricting the geographical origin of goods sold. These restrictions are often overlooked, but a change of ownership can trigger enforcement action. Ensure the existing planning consent matches your intended use.
4. Concession Income – A Hidden Profit Driver
Subletting to butchers, florists, fishmongers and other concessions can generate significant additional income, often over £100,000 per annum. Concession agreements should be carefully structured with turnover-based rents and short-term licences to retain flexibility.
5. Use Specialist Advisers
From valuation and planning to rating and lease negotiation, engaging advisers with in-depth sector knowledge is vital. Generalist solicitors and surveyors can overlook critical details specific to farm shops and garden centres, risking costly delays or legal exposure.
Simon Quinton Smith, Director at Quinton Edwards and a leading sector Expert Witness, said: “Farm shops can be extremely successful and valuable businesses, but they sit within a complex property and regulatory framework. The right advice can make all the difference between a smooth transaction and a costly oversight.
At Quinton Edwards we have long championed the independent farm shop sector. Whether you are buying your first business, expanding or preparing for a successful sale, it is vital to understand the unique complexities and opportunities that come with farm shops.”
The Farm Retail Association’s More Than Food campaign aims to encourage people to shop at their local farm shop and farmer’s market. With 75p out of every £1 spent at a farm retailer staying in the local economy, choosing local food reduces food miles, supports biodiversity and helps rural economies thrive.
*Source: FRA Market Report 2023