Congrats on this opp! Have you built a quick biz plan/pro forma to see what kind of #'s are required? That'll help dictate whether you'll do a JV or management agreement. In general, I think you should build in payment for your tech and you, but you might consider a base payment/management fee plus a % of the upside, whether that's thru equity or just gross revenue (a la franchises)
*JEROME CHANG* *www.BLANKSPACES.com <http://www.BLANKSPACES.com>* On Wed, Apr 6, 2016 at 10:39 AM, Tom Lewis <[email protected]> wrote: > Saw someone bumped an old thread about JVs and it's prompted me to reach > out for some help/advice/thoughts about a major opportunity I have right > now. All opinions welcome! > > So, as many of you know, I run The Guild in Bath, UK- 3500 sq ft- > established 2013- 150 members. Full with a waiting list and negotiating on > a new 12k space to grow into. My obsession is automating all the boring > stuff so my team can concentrate on making our members day from the moment > they walk in. I have never written a line of code in my life, and I use > the miracle of Zapier together with a billion cloud based tools (most > notably Nexudus and Podio). > > I've now got to the point where this place runs so well without me I don't > actually need to come here. I'm spending most of my time trying to open > Guilds elsewhere, but it's a tough call right now here in the UK, which is > having a major commercial property boom alongside a crazy law which allows > anyone with a commercial property to convert it to residential without > needing permission- so transferring rare commercial property into red hot > residential property at a time that the UK is in a major residential > bubble. It's made property deals incredibly difficult for us, and more so > given that there's now an added dimension here in Bath- developers are > going crazy for student developments (we're a two university city), and > even more commercial properties/offices are going away forever. > > Anyway, in the midst of all this I've been approached by someone who wants > to do something with me . This guy is major league. I can't say who, but > you will have heard of him- he's founder and head of a global fashion > brand. He came in when we opened and stayed in touch. He's got a property > fund, and specialises in creating mixed use developments (residential, > hotels, offices, leisure on one site). > > So, this guy has aquired a plot of land and wants me to come up with a > concept for a hub within a development they are proposing. The inference > is that if we can build something together in this first plot, then we'll > be popping up whenever they develop other sites. So whereas now it's a > office, a hotel, a restaurant and a cinema, in future he'd drop in all that > plus a Guild. > > I know the plot and the area is ripe for a coworking space. The demand > isn't an issue, and the model I've built here is sound. It's a 9000 sq ft > space, with 5m height in some areas, and that's all I've been given. > Before we go any further, he's asked me what I'd do with it and on what > basis. I know these guys have worked on shared revenue/JV basis before, > but I don't know on what exact basis, so I'm keen to come up with a > sensible proposal. > > Given all that, does anyone have any similar experience, or advice on what > to suggest. Assume I know all my numbers, so that's not an issue, and > profitability isn't an issue. I don't have any capital, or the covenant to > sign a straight lease, and this guy can help with both of those, either by > providing a capital contribution or guaranteeing lease finance etc. In > return, I'm guessing we should create an SPV and do a profitability/equity > split, right? What I'm not so sure on is how that should work- should I > build in payment for myself and my tech or should I leave that out as > that'll shake out in the profit share, otherwise I'm double dipping? > Should we go for rent free or would the landlord expect a rent from the SPV > even though they are an equity partner? > > As I say, I appreciate this is something I need to get more formal advice > on, but thought I'd just throw it out there, in case anyone can help with > ideas or advice, or if there's anyone out there who could sell me some > time/knowledge. > > Cheers > > Tom > > -- > Visit this forum on the web at http://discuss.coworking.com > --- > You received this message because you are subscribed to the Google Groups > "Coworking" group. > To unsubscribe from this group and stop receiving emails from it, send an > email to [email protected]. > For more options, visit https://groups.google.com/d/optout. > -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/d/optout.
