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Good evening! I would be happy to take a look at it and see if I can assist you.
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Thanks Tonya! I have reviewed your email. What specific questions do you have regarding this proposal? It appears they will offer you a lump sum up front if you sign the contract, then pay you in the installments as outlined over the next 1.5 years. They are pointing out that you will save on your overhead costs significantly if you choose to partner with them. They are proposing to only charge you $1,941 per month for overhead costs, when apparently you were paying around $3,882 per month -- so that is a substantial savings.
You are required to remain as a full time groomer for 2 years. Any outstanding debts or loans of your business will remain your personal obligation. They will not assume any of your business debts.
One question I would ask them to clarify is when they say increased grooming revenue from current clients will be passed on to K-9 Cuts. I would be curious to know if this included sharing all revenue 50/50 or only the revenue above and beyond what they typically bring in per month due to you being in their location.
Unfortunately, I'm unable to say whether that is a good deal or not. We can't really give that kind of advice. You would need to reflect on your overall net profits for a year to decide if that is a good fit for your business. They're clearly saying they won't be on the hook for your business loan or other debts, and I highly doubt they'd cover the rent due. You could try to renegotiate at least that part with them.
I'd say they're looking to do 50/50 sales based on how this is worded. Again, these are all good questions you need to clarify with them before you sign anything.
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They are clearly excluding that then. If this wasn't posed as an all or nothing deal, I'd certainly attempt to garner some additional favorable terms. Perhaps the $5,000 lump sum was meant to cover your outstanding rent. That could have been their intention.
They clearly believe you would be an asset to have as a groomer. Keeping your shop open cuts into overhead and administrative costs. It appears they're looking to combine efforts while doubling potential customers. I'm not sure how far away your shops are from one another. And I don't know your financial situation to know whether saving that extra per month would make a substantial difference to you as far as your income goes. You really need to sit down and crunch some numbers and see which option leaves you in the best position financially -- personally and for your business.
I would absolutely sit down with my accountant to crunch the numbers. He is in a much better position to advise you on if this is the best choice for your business. He would be my next call.
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Were you able to meet with your accountant? I just wanted to follow up and see if you got the information you needed. If so, please take a moment to rate me so I can close the question. Thank you!