No matter the climate your business is located, checking those HVAC of A/C units is critical. This past summer was a test of some areas where temperatures tend to be moderate, but when the high heat struck, I walked into a number of restaurants where it was clear the HVAC units were not operating to standard.
One of the largest maintenance expenses in the retail business is keeping the coolers operating. Clearly people in cooler climates tend to forget getting a professional opinion on the condition of the HVAC units. Replacing a unit is expensive and frankly too many business have old systems that ought to be replaced. A single unit can cost more than $5,000 to replace. And for each 700-1,000 Sq. Ft. of space that will be roughly 1 unit. So if the space has 5,000 there will be as many as 5 units to get inspected. And one can bet that all 5 units are the same age and similar condition.
Many think the landlord will pay for the units. They rarely do, so don't count on that. Read the lease closely. And if you notice the units are old and will need replacement soon, then you need to protect yourself because the expense is HUGE to replace units.
Mel Jones is one of the premier restaurant brokers in the nation having published hundreds of articles on buying and selling a restaurant and bar business, selling thousands of restaurants in CA., WA and AZ and building one of the most copied business models in the brokerage industry. Mel started SellingRestaurants in 2004 with the one simple concept, give the buyers the information they need to make intelligent buying decisions without being pestered by a broker or hiding information, prepare the business for market by researching key details that make or break deals and educate the buyer on the buying process to create an intelligent buyer. Prior to SellingRestaurants, Mel was a Chief Financial Officer for Universal Music Group, the largest music company in the world. There he participated in more than $11.5 billion of merger and acquisition transactions. He also work for top companies such as Nestle Foods, USA. He hold a Bachelors in Business Administration Finance as well as attended Law School at Gonzaga University. Give Mel a call at 480.274.7000 or click here to email him if you have any questions.