Talk of The Villages Florida - View Single Post - Starbuck's, Spanish Springs, is closed
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Old 07-20-2010, 11:59 AM
Bogie Shooter Bogie Shooter is offline
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Originally Posted by l2ridehd View Post
For Starbucks it's a business model issue. 15% of gross return to Starbucks, 10% of gross to TV on top of rent, and they can't survive on what remains. TV charges a % of gross revenue to all businesses in addition to the monthly rent. For a place that has a high traffic flow year round that works. For a place that has a seasonal business model, unless the owner builds that into their business plan, they will fail. Hence the high rate of turnover in TV leased property.
Isn't the percentage method pretty typical of commercial leases?