Merchant FAQs
Frequently Asked Questions for Prospective Merchants
Below you will find our most frequently asked questions from potential Merchants for the Madison Public Market. You can also download the FAQs here. Please check back periodically as new FAQs are added. If you have additional questions, please reach out to [email protected].
JUMP TO:
- General Questions
- Leases and Rental Costs
- Market Performance and Projections
- Space Details and Buildout
- Policies and Restrictions
- Other Considerations
GENERAL
1. When would I need to be open for the public?
Wednesday, 10 am – 6 pm Thursday, 10 am – 6 pm Friday, 10 am – 8 pm Saturday, 8 am – 6 pm Sunday, 9 am – 4 pm Closed Monday & Tuesday
2. Are those hours temporary or permanent? Are those hours open to extension for certain businesses?
Opening hours are currently set for market start-up. As merchants gain capacity, the hope is to extend them. Depending upon which space the business is located in, it may be possible to have additional hours prior to any expansion we undertake. That is considered on a case by case basis.
3. If I lease a space, do I have to be open during all of those core hours?
Yes.
4. Will I have access to my space to prep or clean before or after public open hours?
Yes. Standard access hours will be two hours prior to opening and two hours post closing. However, if a merchant needs additional time, that can be arranged with Market administration.
5. Will the market be closed on specific holidays/other days?
Yes. The market will be closed on Memorial Day, Easter Sunday, Labor Day, Thanksgiving Day, and Christmas Day. These days are subject to change as business develops. Moreover, we are respectful of other cultures, so if there are other days of cultural or religious importance that merchants observe, these will be decided on a case by case basis.
6. Are there mandatory meetings or events merchants must attend outside public operating hours?
Yes. There will be periodic meetings that require Merchant attendance. A regular meeting schedule will be established and any other meetings will be noticed with ample time.
LEASES AND RENTAL COSTS
7. How much is rent? Does it include utilities and storage?
There are three components to rent:
- Base Rent: $10 per square foot
- Common Area Maintenance (CAM): $12 per square foot
- Percentage Sales: 5% of gross sales
Example for a 100 sf space:
Base rent: $10 x 100 = $1,000
CAM: $12 X 100 = $1,200
Total annual rent is $2,200
Monthly rent $2,200 / 12 = $183.33
Month #1 sales $5,000 x .05 = $250
Total due Month #1 = $433.33
Dry storage, cold storage, and freezer storage are also $10 psf with no CAM charged.
Utilities (electric, water, gas, phone, internet) are additional, billed separately to the merchant as part of the monthly rent invoice.
8. What is Common Area Maintenance (CAM)? Do I have to pay it?
Yes, all merchants have to pay this fee. As a communal business atmosphere, this fee covers maintenance and services of the common spaces shared by all merchants of the market, such as corridors, restrooms, and security among other services. Merchants remain responsible for maintaining the cleanliness of their leased spaces.
9. How long are leases?
Lease length is determined by the type of business and where it is located. Anchor spaces may receive a different type of lease term apart from Market house merchants, as they can be independently operated. In general, a leased space in the Market house will be 18 – 36 months.
10. Are leases automatically renewed? Can I operate month-to-month?
No. There are no lease renewals or month-to-month opportunities. Prior to a lease term expiring, a new lease can be negotiated for the merchant to continuously remain in the Market for another lease term. Merchants must be in good standing in order to enter into negotiations for a new lease. If a merchant is not in good standing, they will be asked to leave by the current lease’s expiration date.
11. Are there any initial deposits or fees required when signing a lease?
Yes. Upon lease signing, one month’s base rent and CAM will be due. Other fees may include background checks, among others.
12. How is the Percentage Sales rent component calculated and reported? What is gross sales based on? How do you prove gross sales?
Merchants will be required to submit monthly gross sales information. Gross sales for the Market are calculated based on activities originating in the Market and run through the merchant’s POS at the market. Market administration reserves the right to audit sales information to ensure proper reporting.
13. Is there a cap on the percentage rent?
No. The Market has established an amount for rent that is affordable for tenants and sustainable for the Market.
14. Are there penalties for late rent payments?
Yes.
15. Are there any annual rent adjustments, such as for inflation or rising operational costs?
Yes. These items are discussed should a new lease be offered.
Market Performance and Projections
16. What is the projected foot traffic?
A market feasibility study was conducted in 2019. You can review the data here. Please also consult the Madison Chamber of Commerce and the City of Madison for more recent statistics.
17. Does the Market have a marketing plan, complete with channels used and how much per channel?
Not yet.
18. How much in sales does the Market project for merchants?
We anticipate, but do not guarantee, that merchants, on average, will earn $600 psf of leased space annually.
Space Details and Buildout
19. How many spaces are available for lease? What are the sizes? What do they include?
Please refer to the Space Descriptions and Map. There are 31 spaces for lease. Two spaces are anchor spaces delivered in “gray box” status.
Seven spaces have hood ventilation systems and sinks installed. Two additional spaces are capable of having a hood ventilation system installed.
20. Who pays to build out the space?
As is typical in commercially leased rentals, the lessee (merchant) is solely financially responsible for building out the leased space, within the guidelines set by the landlord/operator (Market administration). There are several types of funding available, including possible funding from the Market as well as the merchant’s own funds, and possibly other grants and loans from a variety of sources. Should the merchant be eligible for funding originating from the Market, it will be discussed during lease negotiations. However, it is the merchant’s responsibility to seek out all other funding.
21. How and who decides merchant location within the market space?
Assigned spaces are the sole decision and discretion of Market administration. Spaces are offered according to the type of business and features required to run the business. When possible, there may be a choice offered, however this is not guaranteed.
22. If I am offered a space and do not accept it, what happens to my offer?
The offer is only valid for the space designated in the offer within the time period to accept it. Due to the overwhelming response of potential merchants, once you decline or fail to accept by the deadline, we will move on and offer the space to another business. Declining a space does not make you ineligible to be in the Market at a later date, however you may have to restart the application process to be considered again.
23. What kind of signage is permitted for my space?
Buildout guidelines are being developed to ensure a consistent experience throughout the market.
24. Are there restrictions on how I can decorate or personalize my space?
Yes. Buildout guidelines are being developed to ensure a consistent experience throughout the market.
25. Are there any sustainability or eco-friendly build-out requirements?
Maybe. Buildout guidelines are being developed to ensure a consistent experience throughout the market.
26. Can I request additional features or upgrades during the build-out process?
Maybe. Merchants are expected to work with construction professionals to determine features and upgrades that fit within their budget. Additionally, buildout guidelines are being developed to ensure a consistent experience throughout the market.
Policies and Restrictions
27. The Market has insurance; do I need to buy my own insurance?
Yes. As the landlord, the Market carries liability insurance for the property. It does not include the contents of leased spaces. Merchants will be given specifics on the type of insurance required, as well as the minimum coverage needed to operate inside of the Market.
28. If I am a merchant with a signed lease, may I sub-lease to anyone else without the Market’s express written permission?
No.
29. Can I lease more than one space for more than one type of business? Can I co-lease more than one space?
Not initially. Far into the future this may be a possibility but it is not a possibility now.
30. Can I use a leased space only or primarily for fulfilling catering or product orders?
No. The purpose of the market is to create a vibrant atmosphere, where all merchants are serving the customers who come into the market.
31. What happens if my business temporarily closes due to unforeseen circumstances (e.g., illness, natural disaster)?
Merchants are highly encouraged to purchase business interruption insurance from their insurance broker.
32. Can I make structural changes to my space after the lease starts?
Maybe. Buildout guidelines are being developed to ensure a consistent experience throughout the market. Please discuss with Market administration prior to any construction.
33. Are there restrictions on the types of goods or services I can offer?
Yes. Upon lease signing, you are permitted to sell the items on your product listing attached to the lease. Should you wish to sell anything else, you must have express written permission from Market administration, as selling something else without it may negatively affect our tenant mix and offerings.
34. Are there policies regarding sound, smell, or other factors that might impact neighboring merchants?
Yes. This is a communal business atmosphere and everyone must be respectful of other merchants and tenants.
Other Considerations
35. Can I have a liquor license?
To be determined. Check back for updates.
36. What happens if a merchant is not in good standing?
Merchants who are not in good standing may be given an opportunity to correct any deficiencies within a specified time period. Should these deficiencies not be corrected during that time, the merchant may be asked to vacate. If the status is unsatisfactory approaching a new lease negotiation, the merchant may be asked to vacate by the end of the current lease and will not be offered a new lease.
37. Are there any merchant support programs or mentorship opportunities available?
Yes. A feature of the market is to pair more experienced business owners with newer entrepreneurs. Market administration will also monitor the landscape for opportunities.
38. What kind of marketing or advertising does the Market provide for merchants?
The Market’s goal in marketing and advertising is to get people interested in coming to the market itself. The exact type and spend of advertising by the Market is yet to be determined, though we anticipate using multiple channels including social media and traditional media outlets. However, it is the Merchant’s responsibility to market and advertise their business.
39. Are there shared resources, like Wi-Fi or office equipment, available for merchants?
Yes. A cornerstone of the Market is to pool and share as many resources as possible and feasible. The exact resources are to be determined.
