“I lost the deal that I have been working on for months…” said a frustrated café buyer over the phone the other day.
He then went on and told me how this cafe was a perfect opportunity.
It was close to his home, had been on the market for a while, the lady was sick and she wanted to get out desperately.
He had been negotiating for months and finally came to an agreement.
Guess what happened next?
Someone else came along, pinched the deal and he got gazumped!
Don’t lose the lease on your perfect cafe location
You could imagine how angry and disappointed he felt…
How did this happen?
What could he have done to win the cafe lease and avoid this situation? I hear you ask…
Tie up your Cafe Lease with a “Letter of Offer”
The answer is quite simple.
He didn’t put the verbal agreement in writing therefore left it open for anyone else to steal the deal from him, which should have been his.
I know you think the legal papers will take days sometime weeks to come through, therefore there is a waiting time.
The waiting period is the most dangerous time when anyone can come along and offer a better price. Human nature guarantees the buyer to take a higher offer and dump you, quickly and legally!
I’ve seen this happen quite often. Don’t lose the cafe lease you want…don’t let it happen to you!
The simple solution is to write up a “Letter of Offer” as soon as you’ve reached a verbal agreement with the seller. It will lock in your deal while waiting for other paperwork.
That way, if anyone else comes along offering a higher price, you are protected and the seller can’t accept a higher offer.
Conditions of the Offer
Be careful with the conditions on the offer though.
You need to make sure you give yourself enough time to check the documents, the lease, verify the sales and profit figures and do any other checks.
If you are not happy, you want clauses to back out of the deal without losing your deposit.
The idea is simple, however there are many things to consider in execution so make sure you understand all the legalities.
So, if you’re on the cafe hunt, make sure you are fully equipped to create a Letter of Offer.
Need Help With a Cafe Lease?
If you would like to learn how to write up a “Letter of Offer”, with the conditions and terms you need to seal your deal, you need to get this information from the “Café Entrepreneur’s Boot Camp” pack.
We give you the template letter, teach you how to write the offer and give you case studies so you learn how to secure a deal to your advantage.
If you are still unsure you can read another short story about a happy cafe owner that the Cafe Coach was able to help.