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> if the mall has some unleased space, and is having problem filling it, you can cut a deal. > and negotiated a 5 year lease for a percent of his gross sales.
by XorNot 3y ago
> if the mall has some unleased space, and is having problem filling it, you can cut a deal.
> and negotiated a 5 year lease for a percent of his gross sales.
> the landlord took the risk, could have been $0.
Gross sales. That's sales before expenses. Your brother-in-law took on literally all the risk in this scenario. Unless the zombie apocalypse started in that very mall, any store was going to sell some burgers and your brother-in-law was going to be paying out to the landlord before he had covered his own costs.
- detourdog 3y agosometimes that is what it takes. To say the landlord took on no risk is inaccurate. An empty unit can be better than a bad tenant.
- 9659 3y agoYep. You got it. No upfront investment, all the risk. But, he had ran a similar operation before. So he had an idea of what needed to be done, and how to do it.