Quote:
Originally Posted by LndLocked
"That is common to do business that way in strip mall retail areas. EVERYWHERE"
I respectfully disagree.
It is NOT common for a landlord / developer to ask for a % of gross profits in a lease agreement. They make money (as the have a right to) on lease payments (and some would say Common Area Management (CAM) ) ... however, a % of profits from your tenants is by no means normal.
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Not sure what percentage mall stores or developers take (such as in The Villages) although we did read "way back when" that to have a retail business in TV, one would have to share a small percentage of the profits......in addition to paying the rent of course.
In our small town, a merchant simply pays his rent to the landlord.
No shared profits. A merchant of any kind has plenty of expenses in taxes to the state, to the federal gov't, employee payroll and contributions, and on and on.......without giving a percentage to the landlord. Merchants up here also pay their own utilties, heat, etc. Not talking mall stores, just "Main Street" businesses.
Doubt if our supermarkets share their profits with our town, although they do philanthropical type charity which benefits many.
Franchises are a whole different ballgame. A cousin of ours in New Jersey owns a franchise for at least 35 years now and how they "limit your profits" is by giving you a designated "route"........hard to grow a business that way. Anyone who watches "Undercover Boss" will recently have seen mention of how a franchise may sound good initially, but then they get sucked under with all kinds of expenses.......
We also liked Sweetbay.......Publix was good too, but preferred Sweetbay as we are used to Hannaford out of Maine /Vermont, etc.
Hope all the folks in the newer areas get exactly what they need and soon. Both of our rentals were very conveniently located, first to Sweetbay near the Village of Caroline and secondly to a Publix in Mulberry Grove.