10-10-2016, 11:42 AM
I've mentioned this here before, as advice to people thinking about starting a business: make sure you sign an automatically renewable lease agreement for 25 years. Big corporations like Starbucks and Subway have pre-made contracts like these. Rent + inflation increases are built in, renewable yearly automatically at the leasee's behest.
I've seen too many fine businesses fail because the landlord raised rents dramatically after year one and destroyed their business model. They do that because they know they got you by the b*lls: you invested your life savings in the business and are just starting to make money. So either you give in and send all your profits to them, or close shop and lose all your savings.
I've seen too many fine businesses fail because the landlord raised rents dramatically after year one and destroyed their business model. They do that because they know they got you by the b*lls: you invested your life savings in the business and are just starting to make money. So either you give in and send all your profits to them, or close shop and lose all your savings.