Doing Business the Honest Way
- Creation of a real estate trust, for the purpose of developing NEW and EXCITING ways to structure different businesses that the trust can hold as true equity investments in start up companies with somewhat of a limited risk on the part of the trust, if directed and planned in the proper manner.
- Distribution of shares. The trust would have NO LIMIT on the number of public shares the trust can distribute, but there would be a limit on how many shares a single entity can own. For example, minimum number of shares that could be purchased would be 50, and the maximum number of shares that one entity could purchase would be set at (200,000) shares.
- Retail food grocery chain. The initial creation of the real estate trust would start with the operation of a retail food grocery chain that would be franchised under certain relatively strict guidelines for the franchise operator. But if understood by the franchise, the franchise business plan would be quite beneficial to the franchise. It would work in the following manner.
- A typical store would be in the 60,000 to 70,000 square foot range. The real estate trust would purchase the land for the franchise operator and build not only the grocery store, but a complete shopping center anchored by the grocery store. The rental rate for the grocery store would be well below the standard market rates for grocery stores for the region where the store would be located, so as to allow the franchise operator the capability to compete with other grocery stores in the immediate area. Additionally, the franchise operator would also be granted the opportunity to be an equity owner in the entire development of the property in question up to a maximum of 20% with an equity infusion of the necessary development costs associated with each project that he/they/them may be invited to participate in....
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Author: George Ruby