Hi everyone. I have a question for those of you that have negotiated leases before. I'm close to signing a lease that is for a 10 year term and it has a 5 year option that is defined as "to be negotiated at that time at fair market value". I'm not comfortable with waiting until year 8 or so and then trying to negotiate the option but the broker representing me says that this is typical and good to have in the lease vs continuing to pay the rate increases we have for years 1-10. If the lease terms were not already high I might be more comfortable but I'm already paying steep rates for the first ten years and the landlord hasn't given much up in the months that we've been negotiating. I just thought that I've learned from all of you to define the terms up front including the option but I'm being told differently now. I ran this by someone I trust that doesn't have any skin in this and they say I'm being raked over the coals. Can I get other opinions to confirm what I think I already know?
I have my eye on a second location within the same city of approx 70,000. I have obtained a demographic report on the location I am looking at and can compare it to my current location's demographic report. Since I know what I am grossing at the current location, I am working to project my gross at this new location. So far, the population base is larger, it is also more diverse in that there are more minorities. There are more renters, and the income average is lower. Median family size is larger. So, on the surface I think things look good. But, based strictly on demographics, what else should I be concerned with? What am I missing or not taking into account that would be important to you (demographics), if in my situation? Thanks!
I recently read the news article about Best Western refusing a service dog into their hotel (Baton Rouge) when a couples teenage son has a rare form of epilepsy. It prompted me to re-read the laws and go over our previous discussion on this site. Doing that review opened up some new information that I had not seen before.
Here is a quote from part of this article. I've underlined the part I didn't know before.
"The work or tasks performed by a service animal must be directly related to the individuals disability. Examples of work or tasks include, but are not limited to:
assisting individuals who are blind or have low vision with navigation and other tasks
alerting individuals who are deaf or hard of hearing to the presence of people or sounds
providing non-violent protection or rescue work
pulling a wheelchair
assisting an individual during a seizure
alerting individuals to the presence of allergens
retrieving items such as medicine or the telephone
providing physical support and assistance with balance and stability to individuals with mobility disabilities
helping individuals with psychiatric and neurological disabilities by preventing or interrupting impulsive or destructive behaviors The crime deterrent effects of an animals presence and the provision of emotional support, well-being, comfort, or companionship are not considered work or tasks for purposes of the definition of a service animal."
Here is a 2nd article supporting this and it makes the distinction between service animals and emotional support animals as well as the legal rights. It does mention to check with State Laws as well. http://www.servicedogcentral.org/content/node/76
So what I gained from the articles is that people who bring their pets into businesses for "emotional support" don't have "service" animals according to this and thus you have no requirement to actually allow them access to your Laundromat provided you have checked your individual State Laws to be sure.
In order to prepare the sale of laundromat business, I need to know some of key items, so I would like to know your opinion on this:
Which party should hold the contract deposit money? seller's or buyer's?
Seller wants to hold the deposit in seller's attorney, but buyer wants to hold the deposit on buyer's attorney....
If there is no broker and no escrow firm in the middle, then whose side should hold it?
Ok, this is my first mat and I'm going into escrow in a few days. But before that, the current owner notified the landlord and I'm assuming he is going to get in contact with me pretty soon. How should I approach him when he calls? What in the world do you say and how should I start? Should I reassure him I'm going to take care of the place, etc? Thanks for all the help.
I recently just hired my first employee (first employee ever for any business) I'm paying her 1,000/month and she gets to keep all the wash dry fold business. My question is should i set her up on payroll? Can i just write a check and pay her myself or are there things i must do? Filing things, taxes on her part etc??
Outside of demographic data supplied by the CLA or local distributors, has any one done research using the city-data.com web site? It has a lot of information, some more useful than others. I would be curious to hear if this could be a useful tool and if there are any specific data parameters you looked at besides total population, % renters, income, racial mix, etc. As an example, they show information on the break down of employment categories for residents in the selected city. You can also pull up reports by zip code. Any one have any other sources they use?
I purchased my mat last year and am now finishing up my first tax return. My accountant has had questions about certain numbers and I'm finding I need to document my business practices better just in case I ever were audited (in a cash heavy business I would guess there is a higher potential for it). I'm really not to worried about being audited but I'm also not tying to run some Mickey Mouse operation and want to be prepared. Here are my main questions:
1. For self serve income, do you have a log book or spreadsheet detailing collection dates, deposits, etc? I do account for the self serve from the machines but I do it informally on a sheet of paper. I collect quarters, audit the hopper, refill what was taken out of the hopper, deposit bills a couple days a week, then once or twice a month, deposit excess quarters. I'm confident what I deposit is generated from the machines but have only been keeping track on a pad of paper and then discarding the sheet when it fills up.
2. Mileage. We do pick up and deliveries. Does anyone have a good system or an app I can use to best track the expenses related to that.
Any other tips, advice, or other areas to focus on to improve record keeping and accountability would be greatly appreciated.
We are in negotiations with our first laundromat. We recently received the lease which was allegedly renegotiated by the broker (who is representing both sides) when the broker was initially interested in purchasing the mat. He tells us this is an amazing lease, however there are a few concerning terms. Since we are not familiar with commercial leases in Southern California (LA County), we wanted some opinions.
I understand there is a lot of variation in leases, and we are going to have it looked at proffesionally, however we thought the more opinions, the better.
Long term 15+ years
Reasonable monthly rent
The lease is written so that we have ALL the liabilities and responsibilities as if we were the owner of the property; i.e, we are responsible for monthly lease payments plus auto increases (which, by the way are double the inflation rate)
We are responsible for the real estate property taxes, any city, county, state taxes on the real estate and the income it generates
We are also responsible for the cost of any repairs, plumbing, electrical, heating, roof, parking lot, etc
Way back in 1977, it was common throughout most of the US to raise washer prices by a quarter. Those were inflationary times ... costs were increasing ... prices had to increase as well. It was not uncommon to raise the price of at least 1 category of equipment every year.
Today's dollar has the same purchasing power that the quarter had in 1977. In other words, on average, everything costs about 4 times more than it cost in 1977 according to the Federal government. So when I raise my washer prices by a dollar coin today, it's exactly like raising my washers by a quarter in 1977. Perhaps this helps you to understand how I am able to pull off dollar price increases on virtually every washer I own time and time again over the past 8 or 9 years.
You see, a quarter price increase is a non-event. It's too small to obtain the desired effect. It goes unnoticed by customers which, on the surface, seems like a good thing but it means that even they put little value in the additional quarter they're paying you. It's not even enough to get your competitors' attention so that perhaps they'll think about increasing their prices too. Nobody should be increasing even single load washer prices by a mere quarter.
Today, more than ever, washers should be raised in dollar (or 4 quarter) increments. A dollar increase is enough to make up for a few customers who will likely float around to your competitors for a while. It's enough to increase your wage which gives you a better attitude about operating your laundromat. It's enough to make your competitors take notice and think about increasing their own prices. It's enough to start your laundromat back toward true profitability if profits were lacking.