The Percentage Lease
The last of five leases defined this week
This lease lets the landlord benefit from your success. The rentis based on either a minimum or base amount, or a percentage ofyour business's gross revenue, whichever is higher. Percentagestypically range from 3 to 12 percent. With this type of lease,you'll be required to periodically furnish proof of grosssales; to do this, you may allow the landlord to examine your booksor sales tax records, or provide a copy of the appropriate sectionof your tax return. Percentage leases are common for retailspace.
Excerpted from Start Your Own Business: The Only Start-Up GuideYou'll Ever Need