If You Get What You Want, What Do You Do?

Business By Shirlcantuck Updated 25 Aug 2009 , 2:26am by Kandy4283

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Shirlcantuck Posted 28 Jul 2009 , 12:29am
post #1 of 8

Help! I have been looking for a place that would sublet the kitchen. I now have a shot a doing just that.

Today I took a shot and called a local bakery that is open during the day for mainly danish, sticky bun, pies, cookies and things of that nature. The bakery sells no cakes at all. I spoke with the owner about potentially allowing me to rent the kitchen 2-3 nights per week. We spoke for about 30 min. and she seemed extemely interested. She also said that she always gets request for cakes, but she has never really gotten into baking cakes. She thought that we possibly could work some type of deal selling cakes to her for customer request. Not to make this too long, my problem is, where do I go from here? I have never done this type of thing ever? She asked if I had my own pan, of which I do, but what type of things should I be concerned about? Storage, insurance, what licenses do I need, etc... Help please....

7 replies
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Shirlcantuck Posted 28 Jul 2009 , 1:51am
post #2 of 8

any one???? any advise????

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korkyo Posted 28 Jul 2009 , 2:22am
post #3 of 8

I have not been in this situation but I'm sure there are a lot that have that can add to these thoughts.

I would say make a contract. You need some sort of legal documents for who is responsible for what. Spelling out what the "business" arrangements are for rental, does she get a percentage or just rent etc etc.

Yes on the insurance. Not sure where or how much but definatly and make sure it covers everything. You may have to hunt to get a good policy but they are available.

I'd say have lunch and go from there. Get a better idea of what she is looking for and see if it fits your plans, time and if it's worth your effort.
Make sure you are still making money in the end. thumbs_up.gif

Sounds like a good opportunity. Good luck.

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indydebi Posted 28 Jul 2009 , 2:25am
post #4 of 8

Storage, dry and refrigerated. Access. Will you have your own key? Does rent include utilities? If not, how is the cost determined? Does rent include use of their equipment and use of their soaps for cleaning (i.e. using their dishwasher and soaps, sanitizers for counters, etc.)

As a kitchen owner, I would want you to have the Food Safety Certification, liability insurance that names me as an add'l insured, and a copy of your HD license, when you get it (for my file).

I would want to keep everything separate. You pay her X-amount of rent per month and she buys your cakes from you as she needs them. Clean and separate. This helps avoid the feeling that either one of you are being taken for granted if the volume isn't up to whatever par one or both of you thought it would be.

With that, you need to work out deliveries and pickups. Delivery of your supplies (will they accept the delivery for you or will you need to arrange to be there?). Can you order things thru her (higher volume, potential discount, win-win for both of you) and will she just invoice you for those items .... or will you have to buy your own supplies separately?

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Shirlcantuck Posted 28 Jul 2009 , 3:01am
post #5 of 8

Thanks to both of you ladies! Excellent input. I will consider every word and spell it all out for when we do meet and talk later this week. I am doing research as we speak, not only to insure that I am covered, but to put her at ease with her property/business concerns too.


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CakeForte Posted 28 Jul 2009 , 4:07am
post #6 of 8

I have to have my own food permit, the food manager certificate, and the insurance w/ them as the additional insured. I rent hourly, and storage is available if I rent a certain amount of hours.

Most like the HD will require that at the minimum. So you'll have to pay the permit application fees, etc.

Also, get the agreement in writing, you'll still be your own business, just leasing office space. I think it's better to plan as if you are using all of your own stuff except for large equipment.

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cakesweetiecake Posted 25 Aug 2009 , 2:18am
post #7 of 8

Great thread! Very informative!

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Kandy4283 Posted 25 Aug 2009 , 2:26am
post #8 of 8

this is something that I thaught about doing to, so all this really helps me as well! Thanks! There is a local business here and they serve everything but cakes and I was thinking of asking them as well, but I am not sure how or what response I will get, but I just may have to give this a try! Whats the worst they can tell me....no!!!!???

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