I was locked & loaded to buy a group of shops.
One of them was the Crown Jewel.
Just a few years ago, it was the highest-volume shop in the state. Amazing location in the best possible neighborhood.
I could already picture the keys in my hand.
Then I read the lease….
Buried in the fine print was a clause that allowed the landlord to knock down the entire shop and rebuild a new one at the back of the property.
The landlord already had this plan in motion. I saw the renderings, and they weren’t pretty….
Not only did he plan to move the shop, but also to build a giant wall to block it even more!
I guess he figured the tenants of his new building wouldn’t want to see it.
That one clause saved me from a potential disaster.
Most business buyers don’t know what they don’t know.
They review P&Ls and tax returns, tour the location, & check the equipment.
But they miss the landmines:
- Lease clauses
- Key employee issues
- Sweetheart deals that don’t transfer
Any one of these can turn a great deal into a trainwreck.
I’ve acquired 35 shops over the last 10 years. Each one taught me something new.
I put together a video walking through my complete due diligence checklist. This is the exact process I use before writing any check.
I’m sharing it tomorrow inside the Cash Flow Club.
Click here to join for just $29/month
I send exclusive insights to help you make (and save) money.
Cheers!
Brian
