View Full Version : conditions for mat sale
keepitclean
09-30-2005, 01:29 PM
I am negotiating the sale of one of my mat's. The buyer has proposed that he have an addendum to the agreement that states that he "run" the mat for two months and then the sale price will be the average gross times a certain number. They will collect the money during this period and pay me a set fee during those two months. They want to do this because they want to verify revenue. I am not comfortable with this because they could report any revenue number they want. I know I could tell them that they need to do a complete analysis of my utilities but they don't seem up to that calculation.
I would appreciate any suggestions on a better solution. I am sure others have faced this problem with a laundromat that doesn't have receipts for transactions. It is nice that this is a cash business but the buyers and seller don't trust each other.......and in many cases there is good reason for that.
Howard
09-30-2005, 02:43 PM
That is a tough call, what if they destroy the place in those two months?
Why not do the utility calculations for them and show them that the store generates "X" revenue per gallon of water consumed. Then give them their two months but insist it be based on the water meter using this formula that you have proved to them. This way no one can play around.
Another reason why card systems are great -- the real data is there to prove data to a buyer.
keepitclean
09-30-2005, 04:32 PM
That's a good suggestion Howard.....I can run it buy them.
If you are lieing about the gross sales they can always take you to court and sue you later. I know I would if you lied.
Howard
10-01-2005, 04:50 PM
While that may be true in theory Neal, I think you would find it almost impossible to prove that. There is no guarantee in any business that the future will follow what the past was. Just because a seller claimed to do "X" last month and when you buy it the income is "X-y" you would never be able to prove he lied about it being "X". He could easily claim that you did something to drop the business, or that customers just liked him and left when he did or many other explanations for why business is less now than before. Let the buyer beware.
galaga
10-02-2005, 03:24 AM
show them the utility bills,the buyer can ask any dealer or laundry owner,anybody in biz for a while can find out the income from water bill,some people may do it for free,some may charge a little fee,the seller should do their own home work,if they really don't trust you,you should find a new buyer.
"TRY TO RUN STORE FOR A WHILE" is the most unreasonable idea I ever heard.
I know someone worked in a store and sleep there for free for a month,checked the money when the owner open the boxes before he bought the store.Seller has to put his own effer ,time and money to do homework otherwise they should not be in this biz.
People ask me all the time,how to get in laundry biz,how to get in arcade biz,I told them a few website to visit,compies to call and need some money too.Most of them never did what I suggest,they just want the money,not the work.Let me say this again,ask your buyer do some homework!
fatboy
10-02-2005, 11:42 AM
I read somewhere on the 'net (right or wrong) that "trial" periods were common in the laundromat industry. Chances are - that buyer read the same thing
I would never let someone "trial" mine. What a nightmare that would be.
keepitclean
10-03-2005, 11:27 AM
Neal---wake up---I didn't ask YOU if YOU would take me to court. /ubbthreads/images/graemlins/tongue.gif
camachy98
10-14-2005, 01:30 AM
Dear Group,
It's very interesting to see that laundromat owners feel this way about their stores. I'm actually looking for a laundromat in NYC, and one of my conditions is the "trial" period that is so often mentioned. I've currently looked at about 8 stores and all 8 owners were open to the idea.
One thing that I've found is that most owners don't keep straight books, and thus they feel they owe the buyer this much. Also, the buyer is suppose to place a significant downpayment in order to do this, upwards of $30,000.
The water/cashflow formula is a good way to figure it out, however, there are some discrepencies when it comes to figuring out dropoff vs. coin income. Also, leaks and any other wastes are also factors. I guess the "trial" method gives the buyer a warm fuzzy feeling inside. However, the key to this is a significant downpayment, that is kept in escrow.
-angel