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Hi there, studio owners. I want to take a moment to talk a little bit more about your lease obligations and exit strategies. I have heard a lot of talk during the recent events about people saying like, what if I just want to close up shop and go away? Or what if I want to convert to a mobile studio type of location? There are a few things you need to know. If you have a lease on the books, it’s not going to be as easy as just turning off the lights and going away. In most cases for your lease, you will need to continue to pay the rent on your space until another tenant is found, who is paying the rent or you know, you may be able to work something out with your landlord, but traditionally on bigger situations, you are on the hook.
Also, if another tenant does come in to take your space, you may still be on the hook meaning that the landlord may not take you off the lease for the guarantor during that period of your original lease, they retained the right to agree to do that in most agreements. So double-check your lease, pull it out and reread it before you make any rash decisions. There are cases where it is cheaper to close up shop and still pay the rent, even if you’re personally guaranteed to pay that. But there are many cases where you still may be in better shape to stay in operations. Even if it’s scaled back until you can find a buyer or until you can renegotiate that lease to have it, have some better terms to the ending as always. I am not a leasing person, but I recommend that you talk to your landlord or talk to your agent, talk to the heirs Rich and Garrett, and get their opinion before you make any decisions here. So I hope to be able to help you out. I hope this is not a situation. I hope that you’re interested in expanding your place. But if you do have those concerns, please feel free to reach out and I’ll be happy to set you in the best path that I can. I’m Donna Bordeaux with PYOPaccounting.com . Thank you very much.
Donna Bordeaux, CPA with PYOPAccounting.com.
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna Bordeaux and PYOP Accounting.com. Donna and her husband, Chad, who is also a CPA, have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help PYOP studios earn 4 times more profit than the average PYOP and are passionate about helping industries that help families build great memories.