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 appears that many here make comments about "the developers cut" without knowing facts about retail leases or how they are put together. To be clear, I am not a Villages employee....but always assuming that the Villages takes a cut and that is the reason for failures is absurd. Most commercial retail leases have clauses for a percent of sales over a certain revenue figure...but not from dollar one. Most business people would be happy to write a check if they had achieved the level of revenue required for the percent to be paid. If someone has a lease to pay a percentage at dollar one, it is probably due to a negotiated fixed amount per month...plus the percentage. As Donald Trump said it's all in the art of the deal finding the terms that will provide a happy balance between the person signing the lease and the developer providing the lease.