What Terms For A Comedy Club
There is a comedy club in my area that has been sitting vacant for over 2 years. I talked to the owner and he says to convert it into any usable space it will take a lot of money and he wants to lease it out as it is and is willing to offer favorable terms. What can I ask? I was thinking of asking a probation period of 10 weeks AFTEr which we sign a lease on the going market rate. I know he's unable to rent it otherwise. Does this sound like a fair deal for both parties involved?
Unless you have more experience in Night Club operations than it sounds like you do I would propose a joint venture. In essence you would become his partner in the operation and the two of you split the net income.
Here's where I would start. Ask him how much he would like to just sell the place and be done with it. Next question, how much would he like to just rent it to you as is and you will take care of getting everything up and running.
Then I would negotiate a deal along these lines: you two become joint venture partners and split the net operating income up to his monthly rental number. Then you get 75% of the profits and he gets 24% above that number. Finally you would like an option to buy him out at is walk-away number.
Good luck