fibbi

26# somewhereintime


But I have seen a few cases which the owner does seem to "escape" wor...

I can still recall the NY Cafe (on Cambie and 16 Ave (2nd floor). One day there is a notice posted on the door that it is forced to close since it didn't pay 10 months rent (or more)... something like that...can't remember details...

somewhereintime

I 31# fibbi

Yes, there are always exceptions , depends on the terms on the lease.
A  commercial realtor always have the lease drawn up for each property,
usually 2-3 month deposit is required then they may put a lien on your
house. When the rent is 2 months in arrear, they may seek court order
to liquidate the restaurant. A Baliff would  seize all the valuable and auction off.
The fund from the auction would pay the landlord and any expenses incured.
I have witnessed a case:  the franchisee bakery cafe owed 2 month rent,
the baliff stormed in with court order, removed everything from the premises
in less than an hour, really scary.

sheep

Is it the only thing that cross your mind?
There could be other very complicated issues.
somewhereintime 發表於 2009-12-10 16:15

I'm simple, can't think complicated

sheep

theres a new 649 booth in aberdeen, how can he/she survive? the owner doesn't even sell news paper nor snacks. aberdeen's rent is like next to robson
毅字 發表於 2009-12-10 16:44

family business, like the post office

kingsway

Yes, you just signed a loan from your landlord, most people do not realize that
the lease is a legal contract required personal guarantee.
$5,000 monthly rent x 3 year lease simply means that you ow ...
somewhereintime 發表於 2009-12-10 16:26

That require personal guarantee to lease a place?  No wonder there are so many empty places for leasing nowadays.  

Is that true that if you can find a new talent for the landlord, he/she may let you walk away?

rockypath

never do business with partner... trouble bounded to happen.
myversa 發表於 2009-12-10 11:47

Partnership is always a difficult thing to manage and prosper.

A friend of my sister closed his restaurant sometime this year. There are three main reasons for the failure.

1)        They have way too many shareholders. It is difficult to get people to agree on something and it is even harder to implement the issues they agreed on.

2)        Chef is always a big challenge to deal with. The turnover rate is very high (either the chef quit or they had to replace the chef). It is very difficult to find someone is skilful and trustworthy. One of the most difficult challenges is food consistency. The taste and quality of the food just goes up and down along with the mood of the chef.

3)        Their business volume dropped dramatically due to the economy downturn.

Nevertheless, he said he certainly learned a lot (in a hard way) from this failure, but he will be much better prepared if there is a new opportunity arises.

somewhereintime

35# kingsway

If you sell the business, the new tenant may be able to pick up your lease,
but then, the Landlord may ask the new tenant to start with a new lease, all depends.
You cannot sell a business without a lease, because the buyer cannot predict what
the rent will be. I always advice my client to draw up their lease, or get a lawyer to
audit the lease for your protection, and make sure you include the term that
"the lease is transferable" in case you want to sell the business.
Some tenant just "Walk out of lease" leaving all the chattels behind.
then the landlord would make a value  assessment and add to the rent over 1 or 2 years
period.

myversa

36# rockypath

1) I totally agree with you on this.  It's very hard to get partners or shareholder to agree on something and it is easier to blame on others if it failed.  I can give you one example, when we joined the business, I often went there to help after my regular work and all day Saturday and Sunday without any kind of pay.  For that half of year, I just asked for approximately four days off for my wife and I, three was to go to the states' Black Friday and one was for my birthday.  He got pissed off by saying that how come we can get days off and stuff like that.  We always found substitutes for him and paid the substitutes out of our own pockets and we did not get any pay.  Anyway, I got labeled as "not Hard work Partner"...

2) so it's best for cook to be one of the partner or shareholders so he would think good for the company.  If not, not only he would leave some days for better pay or did the thing his own way (refer to my other thread about my temp cook when the main cook went back to Malaysia.)  He made some unsafe food practice and I already told him not to do it; still he thought he was the big shot and we did not dare to close the restaurant.  If I know where he works now, I would post it out and tell people not to go because of his cooking ethic.