Forums: Discussions for entrepreneurs and small business.

Hi there,

 

Long time reader, first time poster. I own a medium sized business, its a large health club. I've recently been approached by a business that will compliment my current business quite well. They want to sublet space within my business that will give them access to my members. I've been toying with different layouts in terms of how to structure the agreement, ie. flat rent/flat rent + a piece of their revenue/flat rent + piece of revenue generated from my members only.

Any insight would be helpful - especially in terms of what kind of numbers I should look at, not in terms of rent but percentages of their revenue.

 

Thanks!

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Flat rent + a piece of their overall revenue seems like a fair shake because they are essentially cannibalizing your members as well as your space.  You can benefit greatly from a lease method of this nature.

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