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Leasing Shop/Forecourt

  • 05-07-2010 9:16pm
    #1
    Sally Floyd
    Registered Users, Registered Users 2 Posts: 27 ✭


    I have been offered a good going shop & forecourt to lease, but the lease figure I have been quoted seems a bit high. Can anyone tell me what the going rate for leasing is (as a percentage of turnover). Or is my better option one where I offer him a percentage of turnover, so the more the shop takes in, the more the leaseholder receives.

    Also, are ther any other things I should be watching out for whilst in discussions with the leaseholder?

    Thanks:rolleyes:


Comments

  • #2
    Bandara
    Registered Users, Registered Users 2 Posts: 3,282 ✭✭✭Bandara


    Sally Floyd wrote: »
    I have been offered a good going shop & forecourt to lease, but the lease figure I have been quoted seems a bit high. Can anyone tell me what the going rate for leasing is (as a percentage of turnover). Or is my better option one where I offer him a percentage of turnover, so the more the shop takes in, the more the leaseholder receives.

    Also, are ther any other things I should be watching out for whilst in discussions with the leaseholder?

    Thanks:rolleyes:

    Hi Sally

    I'd advise you to be extremely careful before taking this on.

    Are you in the business currently? The amount of service stations that are available at the minute is incredible (because they are all dying on thier feet)

    The industry is beyond screwed. What is the sites turnover / wetstock volume / carwash sales ?

    What figure are you being quoted to lease it?

    When you say lease, are you leasing it from a Oil Company or a regular landlord? If its the landlord, did he/she operate the site and are now looking to lease it?

    Have you ever operated a forecourt before? (ie are you aware of the huge cashflow requirements you will have from day one?

    I'd be hugely concerned as to why, if its a good site, it has been offered to you. I mean this as no disrespect to you but good sites never become openly available. Even the mediocre ones change hands within the industry. By offering it to the open market this would set off alarm bells around its profitability, BIG TIME.


  • #3
    gerrycollins
    Registered Users, Registered Users 2 Posts: 1,799 ✭✭✭gerrycollins


    agree with the other poster

    in general ask for proven figures ie last set of accounts and pay an accountant to look over them.

    I was informed recently that a workable figure should be, the cost of lease(equipment etc) and rent to landlord combined should be no greater than two weeks of net sales excluding fuel sales.


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