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Jennifer Raney Herriage

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Retail Property Sub-leasing Business Plan

March 3, 2023 By JamesCall Leave a Comment


Retail Property Sub-leasing Business Plan


Galerie de Beaute can be described as a shopping center for beauty professionals. Galerie de Beaute leases fully-equipped units to state-licensed beauticians.

When starting a business, owners of salons have many obstacles. Purchasing equipment and finding a location in a high traffic area with reasonable rent is often difficult. Although 40% of beauty professionals own their own business, 60% are employed in a privately-owned shop.

Traditional salon employees receive 50% commission. This means that employees often have to pay for the supplies and products they use. These issues sometimes lead to high turnover in the industry. Because of these challenges, salon owners have resorted to booth rental in those states in which it is legal. Booth rentals are appealing to many but they have some disadvantages. Signed leases are required in order to be considered booth renter, and not employee by the IRS and state. If an audit is performed and there is no signed lease, this could involve significant liability, including back taxes, interest and penalty.

As an owner investor, we will seek a long-term investment or a loan. This will help Galerie de Beaute make the required leasehold improvements to the selected site. Leasehold improvements are the installation of equipment, electrical, plumbing, and carpentry necessary to build 24 suites.

First year profit is estimated at $17,000 growing to $37,500 in year three.

1.1 Mission

  • Establish Ourstate’s first salon mall
  • High quality suites
  • Maintain long-term financial stability
  • You have access to a variety of personal-care and beauty professionals
  • Maintain professional ethics at their highest levels
  • A progressive environment attracts talented entrepreneurs
  • Keep your community commitments true

1.2 Objectives

  • Galerie de Beaute provides an alternative for salon pros who desire to own their salon.

  • Galerie de Beaute allows hairstylists, nail technicians, and massage therapy professionals to set up a mini-salon without any capital outlay.

1.3 Keys To Success

  • Galerie de Beaute is situated on the heavily traveled corridor of routes 13 & 40. An average of 20,000 vehicles are used daily.

  • Galerie de Beaute is attractive to salon professionals because the professional pays a set monthly expense. Salon professionals no longer have to be commissioned employees.

  • Galerie de Beaute allows salon professionals to rent fully-equipped units. Rent includes utilities, insurance, and the locked unit. Each salon professional will establish his/her business hours, determine pricing, schedule appointments, and buy supplies.

  • Traditional salon owners face many difficulties when opening a new business. Purchasing equipment and finding a location in a high traffic area with reasonable rent is often difficult. 40% of beauty professionals have their own businesses, but 60% work in a privately owned shop.

  • Workers in traditional salons are paid 50% commission. Employees are also often charged for supplies and the products they use. This results in high turnover. Because of these challenges, salon owners have resorted to booth rental in those states in which it is legal.

  • Booth rentals can be attractive for many, but there are also some disadvantages. To be considered a booth tenant and not an employee by both the IRS and the State, you will need to sign a lease. An audit that finds no signed lease could lead to significant liability, including penalties, interest, and back taxes.

  • Salon malls have been established in several other states (i.e. Maryland, Virginia and Ohio have salon malls. There are no salon malls in our state or the immediate vicinity.


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Filed Under: Businnes Plan Tagged With: property, retail, sub-leasing

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“I have both bought and sold properties from Jennifer and I can highly recommend her without any reservation.  She is uniquely qualified due to her vast experience in not only the marketing of homes but also all aspects of ownership.  The result is a professional that adds value to the client beyond the associated cost of representation.” 
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About Jennifer

Unlike many who get into the field, real estate has been the only career for Jennifer Raney Herriage, who has excelled in serving clients for over 20 years.  Having grown up in a real estate family, Jennifer was first inspired by her mother, a broker … Read more...

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