How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask lwpat Your Own Question
lwpat, Attorney
Category: Business Law
Satisfied Customers: 25387
Experience:  Attorney with over 35 years of business experience.
Type Your Business Law Question Here...
lwpat is online now
A new question is answered every 9 seconds

Hi we are trying to start a restaurant business in a new proposed

Customer Question

Hi we are trying to start a restaurant business in a new proposed building and the owners are asking for an admission fee. We've never heard of an admission fee before and am wondering if there is such a thing. The owners are charging us a $20,000.00 fee up front and the building hasn't even been built yet. They are not starting construction until December 2009 and completion will be around spring 2010. We will be leasing the space and on a contract for 3 years with option to renew. The building will consist of over 400 vendor space in a mall type setting. Please help. We don't know if we should proceed with this or not
Submitted: 7 years ago.
Category: Business Law
Expert:  lwpat replied 7 years ago.
That is more of a business decision than a legal one. If it is financially a good deal for you then the question is how to protect yourself. I have seen many cases like this where something happens, the building does not get built and the money disappears. Here I would want an attorney to hold the money in an escrow fund until such time as the building was complete and also want some type of penalty if the building is not completed on time.
Customer: replied 7 years ago.
From what they were telling us they need the payment to help them proceed with the actual construction and downpayment. They did not state that the payment will be placed in an escrow account but in a separate bank account. Their explanation was that the business and space leased will be allowed to be sold to another individual in the future if we should want to at any price that we want to. Is this possible? Is there such a thing as an up front admission fee for leasing a space?