Service · heading C.18.2

Challenging or justifying eviction compensation under a French lease

Refusal to renew a commercial lease (articles L. 145-14 and following of the French Commercial Code): quantifying the principal compensation and the ancillary heads of loss, for the landlord or the tenant, before or during the trial.

Expert registered with the RENNES Court of Appeal
Charte de l’expertise 2025
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Eviction compensation, indemnité d’éviction in French, is one of the most technical disputes under a commercial lease: it combines the value of the business, the value of the leasehold right, accounting, and abundant case law on each ancillary head of loss. The gap between the parties’ figures commonly reaches a factor of three.

My role is to produce a calculation that each party can check line by line. When I am appointed by the court, that calculation becomes the court expert’s report. When I am instructed by a party, it serves to negotiate or to persuade the court-appointed expert.

Your situation

You are a landlord, you refuse to renew and must provision for, or contest, the amount claimed by your tenant.
You are an evicted trader and must justify the value of your fonds de commerce (the business as a going concern) or of your leasehold right, plus your relocation costs.
You are a lawyer preparing a writ, a defence or written observations (dires) for the court-appointed expert.
The landlord exercises the right of repentance and you need to check whether the compensation offered was consistent.
You are subject to compulsory purchase, or your tenant is, and the eviction compensation forms part of the expropriation procedure.

What the report contains

Classification of the business: transferable or not, with its consequences for the principal compensation (value of the business or value of the leasehold right), under articles L. 145-14 and following of the Commercial Code and the Charte de l'expertise (Title III, §1.19)
Value of the business by several methods (turnover, adjusted EBITDA, sector comparables)
Value of the leasehold right (capitalised rent differential, location coefficient)
Ancillary compensation quantified item by item: removal, reinstallation, trading disruption, redundancies, double rent, transfer duties
Occupation indemnity due to the landlord while the tenant remains in the premises
Critical analysis of the accounts and of the other side's claims

Methods used

Valuation of the business by turnover and by profitability
Valuation of the leasehold right by rent differentialRead the method article
Ancillary costs quantified on quotes rather than flat ratesRead the method article
Exclusion of non-compensable itemsRead the method article

Frequently asked questions

Is eviction compensation the value of the business or the value of the leasehold right?

It depends on whether the business can be transferred. If the business loses its customers by leaving the premises (neighbourhood restaurant, local shop), the principal compensation is the value of the business. If the customers follow the operator (professional practice, office activity, some franchises), it is the value of the leasehold right. The report settles this question first.

Which ancillary heads of loss can be claimed?

Removal and reinstallation costs, trading disruption during the transfer, redundancy payments if the activity ceases, transfer duties on a new business, and in some cases double rent. Case law excludes certain items, such as decontamination costs or unamortised investments in particular circumstances.

Can the landlord withdraw the refusal to renew?

Yes, through the right of repentance (article L. 145-58), within fifteen days of the decision fixing the compensation becoming final, and provided the tenant is still in the premises and has not already leased other premises. An early valuation report helps the landlord decide before incurring the costs of proceedings.

How long can the tenant stay in the premises?

Until the eviction compensation is paid, while paying an occupation indemnity set at the rental value, possibly reduced by a discount for insecurity of tenure. I quantify this occupation indemnity too.

Can you assist me when the court has appointed its own expert?

Yes. This is litigation support during a court-ordered expert appraisal: preparing the documents, attending the meetings, drafting technical observations (dires) and analysing the draft report.

Describe your situation, receive a free quote

By email or by phone, as you prefer. The quote sets out the assignment, the timeframe and the price.

Request a quote 06 89 29 10 08