Joint venture partnerships

Re: Joint venture partnerships

Malcolm Ness — Fri, 14 Mar 2014 16:35:12 GMT

Beware the "Inside a pet shop" arrangements.

Many of these pet shops are in purpose-built shopping centres/malls. Bear in mind that these are property developments which have a planned lifespan of 20, or sometimes 25 years. In many/most cases, the leases will be written to finish at the same day 25 years after construction. At that stage, the expectation is that the site will be bulldozed and re-developed - possibly as a shiny new modern shopping centre but certainly with a brand new lease arrangement. Where does that leave the veterinary practice? Who knows, but I have spoken with a couple of vets who wish they had asked such questions earlier.

On a similar theme, now that the major operator of JVP and franchise-type arrangements has floated, its first interest (as defined in law) is to its shareholders. What of the situation that might arise where two of the companies outlets are competing against one another quite happily but in a way that could work better, from the company's perspective, if the same clients were serviced by a single outlet?

Re: Joint venture partnerships

Bob Russell — Fri, 14 Mar 2014 15:47:46 GMT

If it costs £300K no wonder they provide the best in washing machines! You don't even get to own property!

Ouch!

Re: Joint venture partnerships

David Mills — Fri, 14 Mar 2014 14:23:32 GMT

This is second hand info, but essentially: They will lend you the money for buy in (usu about 300k); they will take 20% of turnover per year; it's very difficult to get out of; there's a gagging clause in that 200 page booklet. It may work for some, but you need to turn quite a profit to make it work.

Re: Joint venture partnerships

Martin Atkinson — Fri, 14 Mar 2014 14:17:46 GMT

[quote user="Bob Russell"]

One issue you may face is that it is very likely that there are legal clauses in the 200 page contract to prevent discussion! Only one side ever seems to come over on this site so something is keeping JVP's from discussing the ins and outs!

I would be delighted to be proved wrong!

[/quote] This is exactly what I was going to say. Reading between the lines all is not the sweetness and light that we are led to believe by the partnership's promotions. I had considered a joint venture partnership as a pre-retirement exit strategy but having spoken to a couple quite honestly I value my clinical freedom too highly and would rather just let my practice run down into a hobby practice and then split it into flats and let them, I'll keep some income in the long term that way and in the long term get more than if I was to sell it.

Re: Joint venture partnerships

Bob Russell — Fri, 14 Mar 2014 11:22:26 GMT

I would be delighted to be proved wrong!

Re: Joint venture partnerships

Yantha Smyth — Thu, 13 Mar 2014 18:02:50 GMT

I am personally unable to comment on JVPs but there is likely to have been several other threads on the topic that you may be interested in looking at via the search function if you haven't done already