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Old 11-10-2007, 05:09 PM   #12 (permalink)
tansource
 
Join Date: Sep 18 2003
Posts: 251
Rep Power: 5 tansource will become famous soon enough
Re: Landlord troubles

Such plans will not resolve the MAJOR issue you are bringing up. YOU NEED OCCUPANCY RELIEF or you would not even be considering such things as a solution to your problems. If you are not able to survive without these tactics (sidewalk sales and such) you need to reconsider all future decisions. A sidewalk sale for a tanning salon is not going to change your bottom line in a dramatic way on an annual basis. Generally they cost more to advertise then you will ever get back since you are primarily a service business not a retailer.

Get back to basics review the lease and see if you have any restrictions on such activities (which I highly doubt) if not DO WHAT YOU THINK WILL WORK they have no standing and can't change the lease midstream.

Another way to get your landlord to the table is to slow or no pay until you get an audience. Having worked for chains I have found that a landlord will always negotiate. If it goes vacant for one month they lost any battle with you. People never realize you always have the upper hand especially in a down market. They will usually settle provided you come to the table with reasonable demands. You will need to have enough balls to hold your ground.

Another thing is start collecting EVERYTHING in writing possible. This will pay off if you ever need to sever. And with such high vacancy this will likely trip a provision in your lease unless you made a big mistake. Even still you would win if it ever went that far.

There is almost always an out provision you just need an angle. And anyone the signs a lease without Noncompete & occupancy provisions is nuts. No offense but any landlord would sign either one in a heartbeat as this is boilerplate.
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