Quote:
Originally Posted by GatbTester
Longevity has much to do with knowing how to run a business; however when the developer takes such a huge cut right off your bottom line every month, perhaps the knowledge that one needs is when to NOT sign a contract. True many businesses fail in the first year, but giving back some 8-9% each month is ridiculous as well. Knowing where to open one's store has more to do with future success than anything else. The developer's greed has caused many a business to go down the drain.
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It's not like TV is the only company that take a significant % of a tenant's business. It's very common. In KC, JC Nichols, the owner/developer of the Country Club Plaza and many other facilities, has been doing it for years. I would certainly think Disney does it and wouldn't be surprised if the Atlanta Underground, Detroit Ren Center, and other such facilities had similar arrangements. Many of these place kick out under-performing stores.