No announcement yet.

Start up grooming at pet boutique....Help

  • Filter
  • Time
  • Show
Clear All
new posts

  • Start up grooming at pet boutique....Help

    I have been talking to the owner of a high end pet boutique, which is in a great area but a few things pop up to me as being questionable... I went for an interview there we discussed renting the space as this is only what I am interested in. The rent is high but the location is prime so I can look past the higher rental, but the boutique is asking for 10% of my annual profits this could end up in the tens of thousands above the already high rental cost. The 10 percent is for (their words) "goodwill" if I am damaging to their reputation, but dont I also have a reputation to uphold? What if the business folds while I am renting? The second thing is that they asked if I could groom a practical dog for them to see in a different groomers shop, I have no problem with this but they are insistant on it being their dog. I have always provided my own dogs for practicals since I am not being paid.
    I have to get back to them soon so any feedback would be appriciated.
    Ps... Trying to get the steak instead of the burger.

  • #2
    No way would I give them the extra $. Check out Melissa Verplank's article "What makes an Independent contractor" before going this route though just so you have all your ducks in a row. I think it is at If they wanted more $ then the rent though I'd say "see ya, bye"


    • #3
      I'd discuss it with an attorney who specializes in business law. No offense to Melissa Verplank, but she's not an attorney. There are some issues here that sound a little iffy, and I'd want everything vetted by an attorney.

      I wouldn't necessarily look at this as being an independent contractor. I'd look at it as being a business owner who is renting a place to conduct my business. And I'm not all that sure that the landlord should be due anything above my rent.

      If the boutique owner rents the building, rather than owns it, do they pay the landlord a percentage of their gross, over and above their rent?

      As far as doing a practicle groom, why are they insisting it be one of their dogs, rather than your own? You either know how to groom, or you don't. Are they expecting you to groom Cujo? Why should it make a difference, unless they're expecting to control what dogs you groom? Which no matter if you're an IC or renter, they have no right to do.

      It kinda sounds like they want to have their cake, and eat yours.


      • #4
        Let them eat cake!

        I agree with Helly.


        • #5
          What is the potential that is the most important consideration

          Dear poodlegroominggirl,

          What is your earnings potential? This is what really matters. If you stand a chance of "cleaning up" and making a fortune then what does it matter what dog you impress them with? Capture the opportunity. However if you will barely make a living you need to understand that also and rethink whether it is worth the headache of partners that have control of you and your business.

          Give yourself a chance to discover what it is you are really looking at. How many dogs can the area you are going to rent produce a day and at what price? What is the potential gross and net with the 10% and what is the potential gross without the 10%. Take every cost into account including expansion and employees.

          Other contingencies must be addressed also. You should be your own business with your own insurance, phone, etc. and they should not be allowed to use your area and your equipment when you are not there unless agreed upon by you. There also needs to be an "Exit Strategy" in place as some have mentioned what happens if they decide to move or go out of business?

          Is there a unit for rent next to them or close to them? I always said if I was going to open (other then the The Pet Salon) a high end Boutique with Professional Grooming I would do it next to a PetSomething as they spend millions bringing clients to them and you could share it that. JMO



          • #6
            Okay, I think the deal is bad and I personally would never give anyone 10% of my hard earned profits. That said, I did sell real estate for a year and my office worked in leased property and it is quite common practice to require a % of profits. It is almost a given in the large malls. There's nothing illegal about it at least not in the state of Tennessee. It is written into the lease. However, these people are sub-leasing to you and don't own the building so I don't know if that's a factor that would change the legality of it.

            Stephen: Yes indeed, and sometimes it can be a favorable thing where percentage rent is paid. Of course the percentage amount is key, but for groomers starting out with no clientele the landlord can make little and takes risks. We have seen these deals acceptably done, with a cap on the rent and it sure helped groomers get started in their own business in a nice building with very very little cash.