04-09-2015, 03:05 PM
(04-09-2015, 01:51 PM)BuildingScout Wrote: I said it before and I will say it again. Do not sign a lease for your startup business that does not include automatic renewal provisions at pre-established prices. Big chains demand 20 years at CPI or thereabouts with an option for another 5-20 at slightly better terms to the landlord.Savvy retailers argue that they need long(er) term leases in order to amortize all the leasehold improvements they intend to make.
(Restaurants in particular usually require expensive leaseholds. Think kitchen. That makes Imbibe's situation even more curious. What were they thinking? But I'm digressing.)