He is not nuts at all. You will have to pay triple net, you will need a personal guarantee, and the reason he is asking to make sure you have 5 years is to check your net worth. Normally they don't ask for 5 years of rent in the bank but they WILL want a minimum net worth to make sure that you can afford the place to begin with. It is not like renting a house. If your credit is bad or you have a very small net worth then it is also common for them to make you have multiple personal guarantors on the lease. The triple net can and may have a 3% increase each year.
Were both of those bike stores super busy? Busy enough to justify a third bike store? Maybe they don't stock stuff because it doesn't sell. Bikes are not something people buy everyday.
I can tell you how to franchise a store but you will need a successful store first. People aren't going to buy a franchise unless they can make money from it. Once you get a store you will need an attorney to do the Franchise Disclosure docs for you. This is NOT cheap. 30-50K in attorney fees (you were asking at the beginning where to get money for inventory, where would you get the attorney money?)
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68 Camaro "Bloodline". OZMO Twin DBW LS3 with TSP 231/236 cam, Speedtech frame, Ridetech coilovers, Chassisworks G Billet/Fab 9, Asanti 19's, Fesler brakes, Carbon Anvil everything, etc.
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65 Fastback "Maddo" @ Meanstreets Performance. Ridetech, crate 306/T5, tubbed, Forgeline
Last edited by John510; 08-19-2012 at 12:37 AM.
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