Not sure what I would be getting into exactly but I have these variables in my favor:
Friend owns a body shop on a BUSY business corridor near downtown Denver, he has a HUGE building with extra garage space and a vacant office. The additional office is about 1000 sq ft if i remember correctly. I could probably rent this space out at a very low price, possibly free until I get things rolling.
First step would be to make sure the zoning allows for vehicle sales. Denver has "Use Limitations" that specifically apply to Auto/Motorcycle Sales (Section 11.4.19 AUTOMOBILE / MOTORCYCLE , LI HT TRUCK, SALES, RENTAL AND/OR LEASING; PAWN LOT OR VEHICLE AUCTIONEER)
These can be different than the zoning rules that apply for an auto-body shop (Section 11.4.18 AUTOMOBILE SERVICES, HEAVY and Section 11.4.16 AUTOMOBILE SERVICES, LIGHT OR HEAVY).
You might also make sure your buddy is up to current zoning code before starting, just in case you draw attention to his business that might uncover a current violation that could bring the whole thing to a grinding halt. His zoning limitations also will apply to you since you would be on the same property. This one might be a problem, depending upon how he is already zoned:
"B. Rental or sale of motor vehicles is prohibited, unless otherwise allowed as a primary use in the
subject Zone District."
Here is a good starting point for the "Use Limitations" I was talking about:
http://www.denvergov.org/Portals/646/documents/DZC/62411/11_UseLimitations_DZC_062411.pdfHere is a map to help try and figure out what the land is zoned for currently:
http://www.denvergov.org/cpd/CommunityPlanningandDevelopment/Zoning/FindYourZoning/tabid/441455/Default.aspx There are also state licensing requirements for the location in order to get your dealer's license. Specifically these requirements that might not apply to his current business:
"Adequate sanitary facilities (restrooms)"
"Used exclusively for dealer business (the office, entrance and display area cannot be shared with another business)"
And if you are thinking of just doing this on Saturdays and keeping your day job, watch out for this requirement (remember Sunday's don't count, because dealers cannot be open for business on the holy day of Sunday):
"Hours of operation posted and opened at least 3 days per week for a continuous four hours per day between 8 AM and 9 PM." (This is all year round, summer and winter)
http://www.colorado.gov/cs/Satellite?c=Page&cid=1214386532929&pagename=Rev-Enforcement%2FRELayoutNext, find out what Brammo's dealer franchise requirements are. It is nice that you are a big fan, but going into business with a multi-national corporation is serious business, and Brammo will (rightfully) have demands of their own for anyone to become a dealer. You are putting THEIR name in front of your business and putting their branding and reputation at risk. Any dealership deal they make with you devalues Brammo's market position when trying to make a deal with any other dealerships in the area. Exclusive dealership rights for a city or state or region can be a strong negotiating point with other dealerships, and your small dealership would get in the way of any future deals like that. It also would not be unusual to see minimum inventory startup buys, minimum monthly and/or yearly unit buys (regardless of how many you actually sell to customers) and minimum monthly/yearly spends on co-advertising of Brammo and your business.
Finally, Even if your buddy is willing to lease to you for free while you get your business of the ground, it should actually be a $1 dollar lease with a written lease agreement. That would give you legal rights to immediately enter and retrieve all of your inventory in the unlikely case that your friendship goes south and he locks you out. Unless you have a written lease to show the police and the locksmith, you have no legal rights to enter the building to retrieve your goods. You would have to sue to get your goods back, and wait for the slow churning wheels of justice to turn, while your inventory goes out of date and your customers win all their much quicker small claims suits against you.
