PARTNERING WITH RMA

Partnering is specifically targeted at Missions and non-profit organizations that are unable to raise the necessary capital to develop business enterprise that will create more self reliance.

• RMA provides the start up capital required to get the store up and running which typically will run between $80,000 and $100,000.

• RMA and the organization will co-own and operate the store with all final decisions in the hands of RMA until the organization buys RMA out of its interest.  To facilitate the buyout, net profit allocation will take place as follows, following the payoff of all start up debt.

• Years 1 thru 5 – 60% of net profits to RMA and 40% to the Organization

• Years 6 thru 7 – 50% of net profits to RMA and 50% to the Organization

• Year 8 – 10% of net profits to RMA and 90% to the Organization

• Following the 8 year there will be an ongoing 5% of net profits payable to RMA with RMA providing each year a full day visit to review operations and financials as well as provide any counsel that may be needed to keep the store realizing its full potential. If the organization does not desire this support there will be no ongoing fee.

Note: For clarification, the organization will pay interest on the debt and the start up investment/debt will be amortized over the first five years of operation. Allocations would be net of that amortization.
 

This segment of services are available primarily within the state of Michigan, although, a modified version of the partnership arrangement can be considered for anywhere in the U.S