WEBVTT - A Huge Update On Fayt Adelaide 0:00:04.160 --> 0:00:07.080 Hi, I'm Britney Saunders and welcome to Big Business, the 0:00:07.160 --> 0:00:10.120 place where business is far from boring. And today I'm 0:00:10.119 --> 0:00:13.600 recording on gaddigul Land. Now I somehow manage to build 0:00:13.600 --> 0:00:16.000 an empire from the garage underneath my house and I'm 0:00:16.040 --> 0:00:18.119 here to share it all with you, from the winds, 0:00:18.440 --> 0:00:21.840 the huge mistakes, the challenging times and the funny moments 0:00:21.880 --> 0:00:25.320 in between. So, whether you're in business already, perhaps you're 0:00:25.360 --> 0:00:27.479 not in the game at all, Maybe you're looking for 0:00:27.520 --> 0:00:30.639 some inspiration, or you simply want to hear the tea, 0:00:31.000 --> 0:00:33.479 this is the podcast for you now. Coming up on 0:00:33.560 --> 0:00:36.800 today's episode, I'm spilling the tea. It's the tea that 0:00:36.880 --> 0:00:39.120 everyone has been waiting for. So, as a lot of 0:00:39.200 --> 0:00:41.560 you would know, for the last four or so months, 0:00:41.560 --> 0:00:42.839 I have been working. 0:00:42.520 --> 0:00:45.840 On Fate Adelaide and boy oh boy. 0:00:45.800 --> 0:00:49.680 Do I have some updates and to just get straight 0:00:49.720 --> 0:00:53.239 to the chase, to just cut straight through. This Adelaide 0:00:53.240 --> 0:00:55.200 store that we've been working on for four to five 0:00:55.240 --> 0:00:58.080 months now is not going ahead. 0:00:58.960 --> 0:01:03.480 The pin has been pulled. What are you going to say, Xander? 0:01:04.560 --> 0:01:08.200 He's swung his microphone over to him. 0:01:08.240 --> 0:01:09.600 Hello, I have not been on the pod for a 0:01:09.640 --> 0:01:12.480 few weeks. I've had some off time, so off. 0:01:12.520 --> 0:01:12.959 Now you're back. 0:01:13.040 --> 0:01:16.000 Yet now I'm back. Why what's going on? 0:01:16.040 --> 0:01:17.840 I'm going to tell you exactly why. 0:01:17.720 --> 0:01:20.480 You have a lot of Adelaide loyals. I know you 0:01:20.640 --> 0:01:22.679 are going to be screaming up a. 0:01:22.600 --> 0:01:23.480 Store over there. 0:01:23.600 --> 0:01:25.560 I will say, though, Okay, I'm going to tell you 0:01:25.600 --> 0:01:28.080 exactly what has happened. But I don't want everyone to 0:01:28.160 --> 0:01:31.160 think that this is me just giving up on Adelaide altogether. 0:01:31.920 --> 0:01:33.759 Like it doesn't mean I'm giving up on Adelaide. 0:01:33.800 --> 0:01:35.959 It just means this one store that we thought was 0:01:35.959 --> 0:01:38.160 going to be our store isn't going to be. 0:01:38.360 --> 0:01:40.120 And there's so many good lessons in this. 0:01:40.680 --> 0:01:43.640 And I love talking about this stuff because it's a 0:01:43.640 --> 0:01:46.840 good reminder not only to me and not only to 0:01:46.920 --> 0:01:49.960 my fellow business owners or aspiring business owners, but it's 0:01:49.960 --> 0:01:54.600 a good reminder, especially to our community, that it's not 0:01:54.800 --> 0:01:56.960 easy to just open a store when you want to 0:01:56.960 --> 0:01:58.960 open one. And I know I've said that a million 0:01:59.000 --> 0:02:02.600 times before. If someone's like, open a store and camera, 0:02:02.680 --> 0:02:04.640 I'm like, all right, give me twelve months and I 0:02:04.680 --> 0:02:06.360 will see if I can make it happen. 0:02:06.400 --> 0:02:07.760 I will see what I can do. 0:02:08.120 --> 0:02:10.040 Is this the first time that you've worked on a 0:02:10.120 --> 0:02:12.040 store this long to try and get it happen that 0:02:12.040 --> 0:02:12.880 it hasn't worked out. 0:02:13.000 --> 0:02:16.640 Yeah, so this is the first time experiencing this. Every 0:02:16.639 --> 0:02:19.760 other store that we have pursued, it's happened, it's happened. 0:02:20.240 --> 0:02:23.359 But I'm a firm believer in everything happening for a reason. 0:02:23.600 --> 0:02:26.239 That's why my business is called Fate, And I think 0:02:26.280 --> 0:02:27.880 all of this has happened definitely for a reason. 0:02:27.919 --> 0:02:29.080 So let's just get into. 0:02:28.919 --> 0:02:30.840 It and tell you why the store that we had 0:02:30.880 --> 0:02:33.359 in mind and they've been working on for so many 0:02:33.400 --> 0:02:36.480 months now is not going ahead. My whole idea for 0:02:36.720 --> 0:02:41.080 our Adelaide boutique was that we wanted to do something 0:02:41.080 --> 0:02:44.000 a little bit different, And I've always had this vision 0:02:44.080 --> 0:02:46.440 of a Fate store being in a house. You know 0:02:46.520 --> 0:02:49.720 how you see those little cottage boutique cute houses, but 0:02:49.720 --> 0:02:52.000 it's like a business. Sometimes it's more like a beauty 0:02:52.040 --> 0:02:53.959 salon or whatever. But I've seen clothing stores that's in 0:02:54.000 --> 0:02:55.840 a cute to little house. That was kind of the 0:02:55.919 --> 0:02:58.800 vision for Adelaide. Because Adelaide has a lot of like 0:02:59.360 --> 0:03:01.840 shopping area that do have like a mix of like 0:03:01.960 --> 0:03:02.840 actual shopfronts. 0:03:02.880 --> 0:03:04.679 But then there's like the house on the corner kind 0:03:04.680 --> 0:03:04.959 of thing. 0:03:05.520 --> 0:03:09.480 So that was kind of the inspiration for Adelaide, this 0:03:09.560 --> 0:03:11.440 cute little house, and we were going to call it 0:03:11.520 --> 0:03:15.119 like the Fate House or something. So I stumbled across 0:03:16.040 --> 0:03:19.760 this one cute spot and I saw it online. And 0:03:19.800 --> 0:03:21.799 I'll tell you what, Like every time we've opened a 0:03:21.840 --> 0:03:23.960 boutique store, every time I've seen it. 0:03:23.919 --> 0:03:26.160 I know straight away, like when I'm just looking at 0:03:26.200 --> 0:03:26.640 it online. 0:03:26.639 --> 0:03:30.000 And when you're looking at commercial real estate online, it's 0:03:30.000 --> 0:03:32.120 the same as when you're looking at residential. You know, 0:03:32.160 --> 0:03:34.320 you go to commercial real estate dot com the same 0:03:34.320 --> 0:03:37.320 way you go to like domain and real estate dot com, 0:03:37.320 --> 0:03:37.720 but you can. 0:03:37.600 --> 0:03:38.760 Go and look at businesses. 0:03:39.320 --> 0:03:42.600 So I was just searching Adelaide and I found this 0:03:42.800 --> 0:03:45.800 cute house and I thought, yep, I fucking love the 0:03:45.800 --> 0:03:48.360 look of that, Like it looks great. The other thing 0:03:48.440 --> 0:03:51.520 is like, there's so much criteria that I require for 0:03:51.640 --> 0:03:54.120 a Fate store. It's got to be a certain size, 0:03:54.240 --> 0:03:56.920 So we need like minimum I don't even want to 0:03:56.920 --> 0:03:58.880 say one hundred and fifty square meters is big enough, 0:03:58.920 --> 0:04:01.560 Like we need more like two hundred square meters of space, 0:04:01.960 --> 0:04:04.720 and people always when I'm talking about opening a store, 0:04:04.720 --> 0:04:06.440 they're like, oh, you should rent this, and they sent 0:04:06.520 --> 0:04:08.360 me a link. It's like eighty square meters. It's like, 0:04:08.400 --> 0:04:10.320 I need so much more space than that. It's got 0:04:10.360 --> 0:04:13.160 to be the exact size for us. We can't just 0:04:13.200 --> 0:04:16.240 move into any shop that's any size. So I found 0:04:16.240 --> 0:04:20.120 this shop, well, this house thing, and I loved it, 0:04:20.960 --> 0:04:23.240 so I back. I don't know what it was June 0:04:23.279 --> 0:04:26.520 Jelira August. I booked flights for April and I to 0:04:26.560 --> 0:04:28.560 go down and visit the site, because that's what you do, 0:04:28.600 --> 0:04:30.160 you go and inspect it, like you go and inspect 0:04:30.160 --> 0:04:34.240 a house. So we walked through instantly, fell in love 0:04:34.279 --> 0:04:36.680 with it, loved the street that it was on, in 0:04:36.720 --> 0:04:39.560 like a little shopping street kind of thing on a corner, 0:04:39.960 --> 0:04:44.760 lots of other businesses around, lots of other clothing stores around, cafes, coffee. 0:04:44.400 --> 0:04:47.920 Shops, jewelry shop across the road. I thought this was perfect. 0:04:49.240 --> 0:04:53.360 So once you view us a space, then I had 0:04:53.440 --> 0:04:55.919 our builder. So we work with the same building company 0:04:55.920 --> 0:04:58.120 for all of our Fate stores, and they're not based 0:04:58.160 --> 0:05:00.720 in Adelaide, but they are all around Astrata. So then 0:05:00.800 --> 0:05:04.200 our builder went down to Adelaide after I had been 0:05:04.360 --> 0:05:06.680 to do their own site visit kind of thing, and 0:05:06.680 --> 0:05:09.040 they look at things like differently to the way I would. 0:05:09.040 --> 0:05:11.440 I guess like they look at it from a builder's perspective. 0:05:12.040 --> 0:05:15.919 Then I went into some negotiation with the real estate 0:05:15.960 --> 0:05:19.000 agent because when I've said this before, and I'll always 0:05:19.000 --> 0:05:21.839 say it, like everything's negotiable, Like you can negotiate the rent. 0:05:22.120 --> 0:05:25.200 You can say I want this much rent free period, 0:05:25.320 --> 0:05:26.680 like I want to move in and not pay rent 0:05:26.680 --> 0:05:29.160 for three months or however long. I want the landlord 0:05:29.200 --> 0:05:31.560 to contribute to the fit out, and you can get 0:05:31.600 --> 0:05:33.680 all this kind of stuff when you do a commercial lease, 0:05:33.720 --> 0:05:36.120 like you can you can negotiate, and it's just up 0:05:36.160 --> 0:05:37.960 to the landlord what they're willing to give you. Because 0:05:38.400 --> 0:05:40.480 commercial lease is a five years long, so they're going 0:05:40.520 --> 0:05:41.920 to want to invest in you a little bit because 0:05:41.960 --> 0:05:43.400 you're going to be with them for so long kind 0:05:43.440 --> 0:05:48.360 of thing. So I did a couple of months of negotiation, 0:05:48.839 --> 0:05:50.680 and I got to the point where I was absolutely 0:05:50.680 --> 0:05:51.440 happy with everything. 0:05:51.520 --> 0:05:53.200 I was happy with the rent price. 0:05:53.720 --> 0:05:57.320 We were going to not knock out walls on the inside, 0:05:57.320 --> 0:05:59.240 but we're just going to do some like cutouts to 0:05:59.320 --> 0:06:01.880 make some more or walkways, because it's like a house 0:06:01.920 --> 0:06:03.800 like you walk through and it's like a hallway and 0:06:03.800 --> 0:06:05.960 then there's like all bedrooms off to the side. So 0:06:06.040 --> 0:06:09.600 we got permission off the landlord to create some cutouts 0:06:09.600 --> 0:06:11.280 just to open up those rooms a little bit, so 0:06:11.320 --> 0:06:13.479 the doorways weren't like a single doorway. 0:06:13.880 --> 0:06:15.279 So we got permission to do all of that. 0:06:15.839 --> 0:06:18.720 Our builders like mocked it all up to kind of show, 0:06:18.760 --> 0:06:21.839 and we got approval off the landlord that he was 0:06:21.839 --> 0:06:24.880 happy for us to do that. We went through and 0:06:24.960 --> 0:06:28.640 checked that the property wasn't heritage listed because it's like. 0:06:28.600 --> 0:06:29.720 An old cottage kind of home. 0:06:29.720 --> 0:06:31.800 You got to check that kind of stuff because some 0:06:31.839 --> 0:06:34.240 people have gotten into scenarios where they are opening a 0:06:34.240 --> 0:06:36.440 store in like a heritage building and they go to 0:06:36.440 --> 0:06:39.120 start cutting out walls and then oh, hang on, it's 0:06:39.160 --> 0:06:43.719 heritage listed. You can't and that would be fucked. So 0:06:44.360 --> 0:06:48.560 that was all good. And then another thing which I 0:06:48.640 --> 0:06:52.400 had to do was I had to submit a da 0:06:52.520 --> 0:06:54.640 das you have to do even if you're like renovating 0:06:54.640 --> 0:06:56.120 your house, you have to put it through the council 0:06:56.920 --> 0:06:58.560 so that they know what you're doing kind of thing. 0:06:59.200 --> 0:07:02.400 So I had to submit DA through the city of 0:07:02.760 --> 0:07:05.600 only because that's a suburb that it was in. Because 0:07:06.600 --> 0:07:10.880 with commercial buildings they are listed under a certain type 0:07:10.920 --> 0:07:13.720 of usage. So let's say, for example, this one that 0:07:13.800 --> 0:07:16.200 we were going for and was going to be our store, 0:07:16.600 --> 0:07:21.000 it was currently listed as like medical and reception and consulting. 0:07:21.560 --> 0:07:24.640 So if you're a medical, reception or consulting business, you 0:07:24.640 --> 0:07:26.520 could move straight in there, and it's fine because the 0:07:26.520 --> 0:07:30.040 council knows that that's what it's like, it's operating as 0:07:30.080 --> 0:07:33.400 a medical or a reception or whatever. But for us, 0:07:33.560 --> 0:07:38.480 we need the council usage to be retail. So if 0:07:38.520 --> 0:07:41.040 any of you have ever dealt with councils and das, 0:07:41.600 --> 0:07:43.600 like it's a fuck around, as you can imagine, you've 0:07:43.600 --> 0:07:47.000 got to give them like your left arm basically. Like anyway, 0:07:47.040 --> 0:07:50.160 so I started the DA process ages ago to get 0:07:50.160 --> 0:07:54.080 it switched from the medical into a retail, which like 0:07:54.560 --> 0:07:56.200 you can always do. It's just like you've got to 0:07:56.280 --> 0:07:58.440 jump through hoops and give them this proof and that 0:07:58.600 --> 0:08:01.280 and architect drawing and blah blah blah blah blah, like 0:08:01.320 --> 0:08:04.760 all that boring shit. So anyway, I started the process 0:08:04.760 --> 0:08:07.280 of that, and I kept the real estate agent in 0:08:07.320 --> 0:08:09.880 the loop that I was going through my DA process 0:08:09.920 --> 0:08:15.080 and speaking with the council City of Only Plans, South Australia. Anyway, 0:08:16.000 --> 0:08:19.360 I got the lease. So this is months months in, 0:08:19.440 --> 0:08:22.040 like three months in I got the lease. Now this 0:08:22.080 --> 0:08:25.280 is my big lesson for anyone out there. I don't 0:08:25.320 --> 0:08:27.880 care if it's your first commercial lease or this was 0:08:27.920 --> 0:08:30.200 going to be out eighth, because we've got seven commercial 0:08:30.280 --> 0:08:32.440 leases at the moment right, so this is my first 0:08:32.440 --> 0:08:33.079 fucking rodeo. 0:08:34.200 --> 0:08:35.400 It doesn't matter what it is. 0:08:35.760 --> 0:08:39.120 If you're going into signing something, get a professional to 0:08:39.160 --> 0:08:42.800 read it. So I have a solicitor who reads all 0:08:42.800 --> 0:08:45.760 of our commercial leases. Every single time I have gotten 0:08:45.760 --> 0:08:48.200 the commercial lease and I'm like interested in a property, 0:08:48.559 --> 0:08:50.760 I send it to my solicitor and I say, hey, 0:08:50.840 --> 0:08:52.280 we're looking to open another store. 0:08:52.640 --> 0:08:53.760 Here is our commercial lease. 0:08:53.800 --> 0:08:56.040 Can you please go through it, and like that's his job, 0:08:56.200 --> 0:08:59.280 Like here's a solicitor that's like specializes. 0:08:58.679 --> 0:08:59.559 In commercial leasing. 0:09:00.520 --> 0:09:03.160 So they go through it, and it's worth every penny 0:09:03.240 --> 0:09:05.520 to pay someone to look at it because they read 0:09:05.640 --> 0:09:08.320 the fine print and can find like if there's anything 0:09:08.360 --> 0:09:09.360 sneaky being put. 0:09:09.160 --> 0:09:09.960 In there or whatever. 0:09:10.520 --> 0:09:12.240 So we do that every time, and every time he 0:09:12.320 --> 0:09:14.400 usually will come back like he did the Paramatta one, 0:09:14.440 --> 0:09:16.640 and he'll be like, just as long as you're happy 0:09:16.640 --> 0:09:18.520 to do this, which is in section three two A, 0:09:18.720 --> 0:09:20.480 and you're happy to do that, then this looks. 0:09:20.240 --> 0:09:21.240 All good to me kind of thing. 0:09:21.320 --> 0:09:23.520 So I send it over to our solicitor as usual, 0:09:23.960 --> 0:09:26.960 expecting him to come back as he usually does and 0:09:27.000 --> 0:09:29.560 just says like, this all looks good to me. But 0:09:29.640 --> 0:09:31.880 I just thought I would flag this, this and that, 0:09:32.040 --> 0:09:35.120 and usually they're things that I'm happy with anyway. But 0:09:35.200 --> 0:09:41.600 there was one clause in the lease that he flagged, 0:09:42.240 --> 0:09:44.560 and it also didn't sit right with AJ and I. 0:09:49.160 --> 0:09:52.040 So we have seven commercial leasas already, so we know 0:09:52.080 --> 0:09:54.600 what they're like. But this clause that we saw in 0:09:54.800 --> 0:09:59.240 this lease in particular, we'd never seen before. So when 0:09:59.280 --> 0:10:02.199 you're signing commer lease, most of the time they're five years. 0:10:02.600 --> 0:10:04.560 My first bit of advice for anyone out there, if 0:10:04.600 --> 0:10:06.520 you're going into your first ever commercial lease, try and 0:10:06.559 --> 0:10:10.160 negotiate that down because five years is a really long 0:10:10.200 --> 0:10:12.760 time in business. Most businesses don't make it to five years, 0:10:13.160 --> 0:10:15.480 so don't sign something that long if you're not one 0:10:15.559 --> 0:10:18.600 hundred percent confident in your business. Obviously, I'm confident in 0:10:18.640 --> 0:10:20.720 my business, so I have no worries at all signing 0:10:20.720 --> 0:10:23.160 a five year lease. That's a scary thing about opening stores, 0:10:23.160 --> 0:10:26.400 And that's a scary thing that I think about as well. 0:10:26.400 --> 0:10:29.360 When people say to me opening Canberra, I'm like, are 0:10:29.360 --> 0:10:30.640 you still going on a shop there in four and 0:10:30.640 --> 0:10:33.000 a half years, because I'm going to be there five. 0:10:33.280 --> 0:10:33.480 You know. 0:10:34.000 --> 0:10:37.880 But anyway, in any standard commercial lease, much like a 0:10:37.960 --> 0:10:41.560 home lease as well, if in the five year term 0:10:41.640 --> 0:10:43.440 we decide that we want to move out of there 0:10:43.520 --> 0:10:45.720 for whatever reason, like we need to move into a 0:10:45.720 --> 0:10:48.040 bigger shop, or we want to expand, or maybe the 0:10:48.040 --> 0:10:52.120 business has failed. If you break any commercial lease and 0:10:52.240 --> 0:10:54.760 let's say we break it three years in with two 0:10:54.800 --> 0:10:57.640 years remaining, just like if you moved out of a house, 0:10:57.679 --> 0:10:59.840 you have to find another tenant to take over that 0:11:00.080 --> 0:11:02.200 last bit of the lease. I'm fine with that. That 0:11:02.360 --> 0:11:05.840 is in all of our commercial leases. So the landlord 0:11:05.920 --> 0:11:08.360 had that clause in there, which I was fine with. Sure, 0:11:08.520 --> 0:11:10.760 for whatever reason we have to leave, I will find 0:11:10.800 --> 0:11:13.000 another tenant. I've already done that once before with our 0:11:13.080 --> 0:11:15.280 last warehouse. When we moved out, there was still like 0:11:15.320 --> 0:11:17.400 a year or two left, we work with the real 0:11:17.480 --> 0:11:19.440 estate agent to find another business to take over. 0:11:20.320 --> 0:11:21.160 But here's the kicker. 0:11:22.360 --> 0:11:26.440 The landlord had in there, and it's fucked up the 0:11:26.520 --> 0:11:30.600 landlord had in there. If that happened and we had 0:11:30.600 --> 0:11:34.199 to move out for any reason in that five year term, 0:11:34.640 --> 0:11:38.480 and we then found another tenant to take over the 0:11:38.520 --> 0:11:42.280 remaining two years, three years, however many years, and then 0:11:42.600 --> 0:11:46.160 once we walked away, if that other business that took 0:11:46.200 --> 0:11:49.560 over the lease failed to pay their rent, I would 0:11:49.600 --> 0:11:51.079 be financially responsible. 0:11:52.200 --> 0:11:56.880 What Yeah, that is wild? 0:11:57.280 --> 0:11:58.720 Yeah? 0:11:59.080 --> 0:12:01.280 Is that like? Is that legal? 0:12:01.679 --> 0:12:05.280 So my solicitor was like gobsmacked at this because he 0:12:05.320 --> 0:12:08.600 specializes in commercial leases, and he said, I have never 0:12:08.640 --> 0:12:12.480 seen this clause because it's like you can't turn your 0:12:12.480 --> 0:12:13.559 back and walk away. 0:12:13.520 --> 0:12:15.679 Like yeah, it's like you're still locked in. 0:12:15.679 --> 0:12:16.520 You're locked in. 0:12:16.640 --> 0:12:21.840 Yeah, you're actually responsible for another business's financial. 0:12:21.520 --> 0:12:27.200 Yes, and so like he presented that to me and 0:12:27.280 --> 0:12:30.400 I was like, Okay, what the fuck? And then I 0:12:30.480 --> 0:12:35.520 was thinking, like more from my positive like my mindset 0:12:35.520 --> 0:12:37.240 that I always try and have. I was like, well, 0:12:37.800 --> 0:12:40.360 like age and I were trying to like figure out 0:12:40.400 --> 0:12:42.160 if it was worth worrying about or not, like because 0:12:42.160 --> 0:12:45.360 I said, this is a worst case scenario topped on 0:12:45.559 --> 0:12:49.600 top of another worst case scenario. Worst case scenario number 0:12:49.600 --> 0:12:51.440 one is being that we would sign a lease and 0:12:51.480 --> 0:12:53.840 ever have to leave in the five years. Like that 0:12:53.960 --> 0:12:56.440 happening would be a worst case scenario for me, Like 0:12:56.600 --> 0:12:58.960 I hope that every shop that I have at the moment, 0:12:59.000 --> 0:13:00.800 I'm going to do the whole five years. It would 0:13:00.800 --> 0:13:04.080 be terrible if like we failed and had to you know, 0:13:04.120 --> 0:13:06.040 break the least kind of thing. So that's a number 0:13:06.080 --> 0:13:09.199 one worst case scenario. But then the second worst case 0:13:09.240 --> 0:13:12.600 scenario piled on top of that first one happening is 0:13:12.640 --> 0:13:15.880 that I find another business and like they're not a 0:13:15.920 --> 0:13:19.000 genuine business or like they fall short on their rent. 0:13:18.840 --> 0:13:19.240 Kind of thing. 0:13:19.240 --> 0:13:21.720 Because you know, like we've already had someone take over 0:13:21.800 --> 0:13:23.760 our warehouse lease and they're. 0:13:23.559 --> 0:13:26.880 Fine, Like they business is fine and they're paying their rent. 0:13:26.920 --> 0:13:29.640 But like a business could come in there, know that 0:13:29.679 --> 0:13:32.000 clause exists and be like, well we can't pay so 0:13:32.160 --> 0:13:34.160 like stuff exactly have to pay for it. 0:13:34.559 --> 0:13:35.079 Very weird. 0:13:35.320 --> 0:13:38.400 And so my solicitor said, like, I've never seen this, 0:13:39.440 --> 0:13:41.199 and he tried to do a bit of research, and 0:13:41.520 --> 0:13:44.480 I think that clause and I don't take my word 0:13:44.480 --> 0:13:44.920 for this, Like. 0:13:44.880 --> 0:13:48.640 Allegedly, I think it's illegal in like New. 0:13:48.520 --> 0:13:51.560 South Wales and Victoria to have that clause in there, 0:13:51.640 --> 0:13:54.280 but I think, like, because each state is different, so 0:13:54.360 --> 0:13:57.600 I think in Adelaide or South Australia, this kind of 0:13:57.600 --> 0:13:59.959 clause is okay to have. 0:14:01.360 --> 0:14:02.960 So anyway, like all. 0:14:02.840 --> 0:14:05.160 Things are negotiable, And this is what you do when 0:14:05.160 --> 0:14:08.840 you're working out a commercial lease is you go back 0:14:08.880 --> 0:14:10.880 and say, like, I want this changed, I want that 0:14:10.960 --> 0:14:13.880 taken out, Like you can negotiate in that way, mind you, 0:14:14.000 --> 0:14:15.760 Like this is like at the three month mark that 0:14:15.800 --> 0:14:18.920 we've been like working with this agent and the landlord. 0:14:19.680 --> 0:14:21.800 So I went back and said, look, I'm happy with 0:14:21.840 --> 0:14:25.000 fucking everything. And as you know, i'm working with the 0:14:25.120 --> 0:14:27.680 council and we're going through the DA like my builder 0:14:27.760 --> 0:14:30.600 is engaged, like we're ready to sign the dotted line, 0:14:31.000 --> 0:14:33.720 but that one clause seventeen point one, whatever the fuck 0:14:33.760 --> 0:14:37.160 it was, I'm not comfortable with that. And so he said, 0:14:37.200 --> 0:14:39.600 all right, let me cause the agents are just the middleman. 0:14:39.760 --> 0:14:41.240 Like they're just the middleman. So he's like, let me 0:14:41.280 --> 0:14:43.240 take it to the landlord and come back to you. 0:14:43.520 --> 0:14:47.160 So like another week goes by, Hey, Brittany, the landlord 0:14:47.520 --> 0:14:50.680 doesn't want to move on that clause, and then again. 0:14:50.480 --> 0:14:51.520 Like I go back to AJ. 0:14:51.760 --> 0:14:54.400 We have more conversations, and then so we sat on 0:14:54.440 --> 0:14:56.800 it again. I was like, maybe we can just hope 0:14:56.800 --> 0:14:58.520 that that would never happen, Like that's the worst case 0:14:58.520 --> 0:15:00.400 scenario that we would fail and have to move out, 0:15:00.400 --> 0:15:02.240 and then the worst case scenario that a bad business 0:15:02.280 --> 0:15:05.080 would go in and fail on there. But something in 0:15:05.120 --> 0:15:07.240 the back of my mind was like this morally doesn't 0:15:07.240 --> 0:15:09.960 feel right. I went back again for a second time 0:15:10.000 --> 0:15:12.960 and said, look, can you ask him again, like can 0:15:12.960 --> 0:15:15.720 he take it out? And so I waited again and 0:15:15.800 --> 0:15:17.760 again came back, No, he doesn't want to take it out. 0:15:18.400 --> 0:15:21.000 The day before our Paramatta store opening, so it was 0:15:21.000 --> 0:15:23.360 a Tuesday, I was in our Paramatter store getting it ready. 0:15:24.200 --> 0:15:26.200 AJ and I'd been having so much back and forth, 0:15:26.280 --> 0:15:28.120 like I'm working with the counsel, I'm doing all this shit. 0:15:28.280 --> 0:15:32.600 Mind you, I've ordered all the stock. I've ordered all 0:15:32.640 --> 0:15:36.760 the stock for Adelaide because you have to because stock. 0:15:36.520 --> 0:15:38.360 Takes like fucking six months. 0:15:39.560 --> 0:15:42.680 So and like the good thing about that is like 0:15:42.760 --> 0:15:45.320 we're in such a fortunate position where all that stock 0:15:45.360 --> 0:15:47.800 I've ordered for Adelaide if I don't find another store 0:15:47.880 --> 0:15:50.640 in that time, I've just ordered all of our best sellers, 0:15:50.640 --> 0:15:52.720 which I can just spread out amongst all of our stores, 0:15:52.760 --> 0:15:54.680 like it's only one store's worth. I can spread it 0:15:54.720 --> 0:15:56.360 across our five other stores and they would just have 0:15:56.400 --> 0:15:58.880 a little mini restock. But I'm in a fortunate position 0:15:58.920 --> 0:16:00.640 to be able to do that. Imagine if I wasn't 0:16:00.920 --> 0:16:03.720 and I'd committed to spending this few hundred thousand dollars 0:16:03.760 --> 0:16:05.400 on stock and I had nowhere else to sell it. 0:16:05.600 --> 0:16:07.320 So thank God for that. 0:16:08.240 --> 0:16:10.720 So anyway, the day before our paramount opening, I just 0:16:10.760 --> 0:16:13.760 sent like a very strong and powerful email to the 0:16:13.800 --> 0:16:16.280 agent mind you, like he would want us in there 0:16:16.320 --> 0:16:18.120 because he's been dealing with us for months, like they're 0:16:18.120 --> 0:16:20.880 not looking at any other tenants. Actually, let me read 0:16:20.880 --> 0:16:23.440 it out for the sake of the drama. So here 0:16:23.560 --> 0:16:26.240 is the email that I sent. And I really want 0:16:26.240 --> 0:16:30.480 to breafasce this by saying, I one hundred percent respect 0:16:30.880 --> 0:16:33.720 the reason that the landlord may have this in his contract, 0:16:33.800 --> 0:16:35.800 like landlords can put whatever they want in their contracts. 0:16:35.800 --> 0:16:37.640 And I talk about this a little bit in this email, 0:16:37.760 --> 0:16:39.520 but I don't want anyone to think this is me 0:16:39.600 --> 0:16:41.800 like shaming the fucking landlord or the real estate agent. 0:16:41.840 --> 0:16:44.080 This is literally business, and this is a shit that happens. 0:16:44.480 --> 0:16:47.200 So my email on the twelfth of November was hey, 0:16:47.720 --> 0:16:50.280 real estate's name, thanks for getting back to me. I 0:16:50.320 --> 0:16:54.880 completely understand the landlord's concerns surrounding this entire possible scenario, 0:16:55.080 --> 0:16:57.600 and perhaps he has been burnt in the past, and 0:16:57.640 --> 0:17:00.080 maybe that's the reason why he has this clause in 0:17:00.120 --> 0:17:02.400 his contracts, Because I'm just thinking, like, maybe this guy's 0:17:02.440 --> 0:17:05.040 been really fucked over and in that scenario before, and 0:17:05.080 --> 0:17:07.800 maybe that's why it's now in all of his commercial leases, 0:17:08.240 --> 0:17:11.879 which if so fair enough, I thought i'd mention he 0:17:11.920 --> 0:17:14.399 would have to oh, because he was saying something about 0:17:14.440 --> 0:17:16.439 like how he was worried about like the new tenant 0:17:16.480 --> 0:17:18.520 coming in, so I said I thought i'd mentioned he 0:17:18.520 --> 0:17:20.359 would have to approve the tenant if we were to 0:17:20.359 --> 0:17:22.040 ever need to break the lease. It wouldn't be like 0:17:22.560 --> 0:17:25.119 I'd be having a complete random taking over the lease. 0:17:25.560 --> 0:17:28.960 In saying this, I still completely understand his concerns. After 0:17:29.000 --> 0:17:31.720 a lot of thought, I regretfully will not be moving 0:17:31.760 --> 0:17:34.679 forward with commencing our lease at this location. Then I 0:17:34.720 --> 0:17:37.680 did a little pitch about us. We have seven commercial 0:17:37.800 --> 0:17:40.439 leases within our business, all of them being five years, 0:17:40.480 --> 0:17:44.000 and some I've even renewed already. Within those seven leases, 0:17:44.280 --> 0:17:46.480 none of them have this clause in place. 0:17:46.880 --> 0:17:47.520 I want to. 0:17:47.440 --> 0:17:50.680 Express that I have full confidence in our business. Our 0:17:50.720 --> 0:17:54.040 business and retail stores are absolutely thriving, and I can 0:17:54.080 --> 0:17:56.080 only be sure that if we were to take out 0:17:56.119 --> 0:17:59.120 the lease at this location, we'd be signing the five 0:17:59.200 --> 0:18:03.320 year option through a very successful first five years. Because 0:18:03.400 --> 0:18:05.479 just like side note, when you sign a lease, you 0:18:05.520 --> 0:18:07.879 get like a five year within a five year option, 0:18:08.080 --> 0:18:09.680 so then it's up to you if you want to 0:18:09.720 --> 0:18:11.640 take the next five years. It's not like you get 0:18:11.640 --> 0:18:13.240