Letter of Intent

Got the letter!!  Super exciting!!!

I read through it and had some questions and some red flags but I let Mark do the real mark up (pun intended).

  • They offered a 10 year lease with 1 five year option to renew but we had discussed a 5 year lease with 2 five year options.
  • They offered 27.50 per square foot for rent but we want more like $22 since there are also taxes, insurance and maintenance (plowing, shoveling, exterior building upkeep) that is about $6 per square foot.
  • We also discussed the rent abatement and we want to make sure that is in there. Something like 4 months free, 4 months at half and then up to full at month 9.
  • There was something in there about us completing our build out 14 days after they make it available to us. :-O That is FAST!! Especially with tap lines to get in there.  So Mark is looking into that more.
  • There was a very vague statement that apparently means I can’t open another shop within 5 miles.  Mark wants to clarify that is unless I relocate.
  • Need to add something that states I can sell the business if I want to
  • Need to add something that states they will not accept another bottle shop in the plaza (which seems common sense for them because they should want variety but…. legal stuff)
  • There was also something in the letter that caught my eye that I am responsible for any HVAC unit servicing but that seems strange since it will probably be for the whole building and not just my store space.

So that sums up some of the key points and some of the changes needed. Mark is going to sent the revisions back to Kevin and see what happens.

Cheers!

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3 thoughts on “Letter of Intent

  1. We should begin seeking contractors for our “build out” including installation of tap lines and whatever else is not included in their “build out” (which needs specific clarification). What, specifically, do they build and what, thereafter, specifically, are we responsible for? He mentioned plumbers and others in our initial meeting.

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