Oink

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  • #1188548
    Oink
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    I use Kounta in my café and it works well for us:)

    #1188182
    Oink
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    So for mine, I got a 5 year lease with an option for an additional 5 years. I guess it means that I can get out at 5 years if I want, but if I want to continue they can’t give it away… There is also some stipulation in there around a rent review at the 5 year mark (I also have increments built in) I can’t remember the exact detail though.

    #1188179
    Oink
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    I’m not sure what is typical but my lease is a 5 + 5 :)

    How are you going café_guy?

    #1188176
    Oink
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    I have done almost exactly what you are setting out to do :)

    As another person said, consider starting from scratch, that’s what I did and have spent way way less than $200k. My café is in a suburban/residential area that has good demographics (high median house price, mix of retirees who’ve paid their house off and young professional couples with young families). I took over a shop that had been vacant for three years… As a result my rent is approx 3% of my turnover (yes you read that right;). I had to do the expensive stuff (grease-trap, full kitchen, plumbing) and I’ve still spent less than $100k… probably less than $75k….

    Yes its a bigger gamble as the business is not established, however the reward can be much greater. Coffee is huge business as you obviously know, but if you can find a newly gentrified area or an older area without an existing café you could really kill it:)

    My advice is to play to your strengths, hire people who can fill your gaps in knowledge. Coming from a professional background (as I did) you’ll be amazed by the experienced and passionate staff you can find in hospitality, will to work for what is (comparatively) low pay.

    My other advice is keep your wife working… having a wage coming in will really keep the pressure off.

    Happy to answer any questions you have…

    #1161121
    Oink
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    SimplyReplica, post: 186023 wrote:
    Personally, i think it interesting that someone may think that they will reap more money from the investment of the business than has been invested BEFORE it has even been open. There is no trade, no revenue, still costs to be incurred from food license etc etc and the list goes on…

    And to introduce some additional info, which is what Daves ps could also lead to, if she is unreasonable and wants it valued and even if it does come in higher whats to say you will not walk away and/or demand she buys you out so you can profit from it? and if this selling isnt agreed upon, then it would be deemed a fire sale which would more than likely bring in far reduced price underthe value of what you have already contributed and forced to sell at a loss ???

    Not sure this person is thinking to rationally… Do try and propose a suitable solution before legal aspects are raised, although seeking legal input will be vital on your behalf.

    All the best

    Jason
    “Not thinking rationally”, you’ve hit the nail on the head there Jason. That is how we got into this situation, there has been a severe lack of judgement on her behalf in pretty much every decision she has made. Having us operate without a food licence for a week, while lying to me and thinking she can fool everyone even the government is just one of a million.

    To be fair, it was also a severe lack of judgement on my behalf in getting into this situation. The warning signs were there but I am optimistic to a fault and was so passionate about making this happen.

    #1161119
    Oink
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    FS Forum Support, post: 186020 wrote:
    Hi Oink,

    Welcome to Flying Solo and sorry to hear you’re having troubles. 😡

    A lot will depend on what agreement you had in place with her. Who owns what? If you were planning to split the profits 50/50, then that may imply a 50% ownership. Yes labour could certainly be used to justify a larger cut of ownership than your dollar investment suggests, but again this will depend on what you agreed on.

    But you are right to seek proper legal advice. They will sort you out.

    Good luck and please do let us know how you go. :)

    Dave
    P.S. Here is what I’d do on a purely personal note. Tell her that you’re understanding is that the business is only worth what you can sell it for. Given you don’t have a profitable business yet, the business may very well be worth less $ than you’ve already invested. So this would entitle her to LESS $ than she has invested. But since you want to be generous to her (and still have a chance to open the shop yourself), you’d be willing to give her back her FULL investment. Now with the threat of losing money, that option will start to look a lot more attractive to her.
    Hi Dave, thanks for your advice!

    #1161117
    Oink
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    Hatching_It, post: 186017 wrote:
    When I created my Partnership (with my girlfriend) we wrote out a partnership agreement which stipulated the amount of money being put in by each person and their ‘ownership’ percentage of the partnership.

    I take it you didn’t do something like this? When you registered the ABN together did you have to note a percentage of ownership in there?

    Maclean

    Thanks for the response! No we had no agreement and I’m not sure if there was anything on the ABN registration. We verbally discussed being 50/50. I’ll see if I can find out if it was stipulated on the ABN.

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