Any landowners have experience leasing land to fireworks stand operators? I have a general agreement drafted, but have no clue what to charge for rent. Location is Harris County near lots of neighborhoods. Any recommendations would be appreciated.

I don't see anyone chiming in so I'll give my .02. I worked a stand many years ago as a summer job. I remember the small 30 ft long stand grossed about $7-12k for the owner. The little high school operator got about 15% of that. So, I think your rent estimate could be a factor of how many stands the owner is looking to place. Busier locations have 2-3 stands joined together. I would assume a $20-30k gross if that were the case. Might help you to know how much the owner stands to make when determining rent.

https://statutes.capitol.texas.gov/Docs/OC/htm/OC.2154.htm#2154.202

Family owned and operated a handful of stands when I was younger. The season is only 11 days long.

Christmas/NYE longer.

We would pay a couple hundred $$$ and then give a nice assortment of product so the owners could have a more than adequate party on the 4th. Markup on fireworks is probably 50-70%. We'd give $300-400 of retail product and it would be enough to have quite the show.

One of my co-worker's runs a fireworks stand in July. I'll reach out to him. He's been doing it for years.

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Markup on fireworks is probably 50-70%.

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That same co-worker once told me their markup is 200 to 300%. Then again, we're in East Tennessee so who knows what the markup would be in Texas.

To the op. I think my buddy got 1500-2000 and 1000 worth of fireworks

Hwy 30 and harvey

I have some i will let go of because I buy every year for July 4 th and December 31 and it was to dry this year July 4 th

I get alittle better deal that I can pass on if anybody is interested

But yes there is a200-300 plus markup

I used to help run the Fireworks Warehouse (now Top Dog Fireworks) on HW 6 south of CS, and would bounce around those around the Houston area helping out. This was around 07-08. I feel like I remember the markup being like 300-400%, at least, if not as much as double that on many items.

But the owners of that place were buying much higher quantities.

Those stands are a target for robberies and you need to be sure you're protected in case the kid working the stand gets hurt or killed.

rather be fishing said:

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Those stands are a target for robberies and you need to be sure you're protected in case the kid working the stand gets hurt or killed.

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Is this true I always wondered but have never heard of a firework stand being robbed

Seems very dangerous but honestly have never heard of one being robbed

ToddyHill said:

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One of my co-worker's runs a fireworks stand in July. I'll reach out to him. He's been doing it for years.

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Markup on fireworks is probably 50-70%.

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That same co-worker once told me their markup is 200 to 300%. Then again, we're in East Tennessee so who knows what the markup would be in Texas.

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blackcats firecackers are 1200%.

Box of mortars/artillery shells? probably 60%.

I likely underestimated, but they're marked up high.

maddiedou said:

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rather be fishing said:

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Those stands are a target for robberies and you need to be sure you're protected in case the kid working the stand gets hurt or killed.

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Is this true I always wondered but have never heard of a firework stand being robbed

Seems very dangerous but honestly have never heard of one being robbed

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lots of cash on-site.

We parked an RV and stayed there 24 hours a day, with loaded weapons.

Cash tills were often swept and taken from the stand.

On a busy 4th, we may have done $25k at each stand.

Yes I know Lots of cash on site but have you ever been robbed or even know of anybody that has been robbed

Or does that mean cash tills swept from the stand means robbed or yall swept them thruout the day

I would have something built in for land use damages. There is one stand back home that was basically the corner of a hay field/pasture. If it rained, the parking area would be rutted up bad and smaller vehicles would get stuck. This happened a couple couple of years until someone (unclear whether landowner or operator) had a couple loads of gravel brought in.
So basically....get some money in your pocket plus enough to clean up the place if needed.

This is true also. My friend had to so some work landscape after they packed up and left and coild not come to an agreement on terms

maddiedou said:

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Or does that mean cash tills swept from the stand means robbed or yall swept them thruout the day

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we swept the tills to keep as little cash as possible.

People knew we were out there and knew we were armed....

My first dip was working in a Fireworks stand. The first time I was on the radio (owner was doing a promotion) was also in a fireworks stand (warehouse relaly). Good times. Just wanted to contribute to this thread.

I'm interested, what are you willing to let go of and for how much? Text me at 9 seven nine 76six one0four0

I will tomorrow after lunch but I am trying to get rid of half

I have about 13 different types of the monster mortar fireworks

My dad was with the sheriff's dept. for nearly 30 years. I remember him having calls to them all the time and would often see them targeted around 12:30 when they were trying to get finished up for the night.

Thieves and robbers should lose body pars at a minimum, and perhaps their lives for stuff like that. Or tie a 3" mortar to the inside of their leg, their hands behind their back, and light it off.

my uncle has a few he has people run on his place. his deal is 10% of gross.

NineIron said:

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Any recommendations would be appreciated.

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I imagine you're looking for a dollar figure, and I really can't offer much advice on that.

I can, however, make a suggestion, having been a general commercial lessor for many years.

Make sure the operator (or his backer/owner) has a G/L insurance policy (usually $2MM/$1MM limits) and make their insurance company issue you a certificate of insurance listing you as a named insured on the policy.

Also, in the lease, make sure they agree to indemnify, defend and hold you harmless for any loss that occurs on the property due to the fireworks stand being in operation and make sure you state that a claim of your own contributory negligence will not invalidate the indemnity.

You don't need some half-drunk guy buying fireworks twisting his ankle in the 'parking lot' in a pothole and then hauling you to court since you own the land and you should have concreted the whole thing. You get the idea I'm sure.

As one of the other posters said, even if you have your own liability policy on your place, I'd imagine your insurer will claim that they didn't anticipate the use of your land as a retail fireworks location.

Good luck.

Not on your question, but just as a comment in general -- Some of my favorite childhood memories involve buying fireworks from a stand and shooting them with my friends, even if all we were able to afford was the cheap stuff. I never really got into watching public displays even though those fireworks were a million times better than what I and my friends had.

All great feedback. I appreciate all of the responses.

The % of gross sales seems fair. Still trying to gauge where I'm at in my local market.

I utilize a License Agreement permitting access to a defined area on the property. A term and compensation are specified. G/L insurance is required ($2mm aggregate, $1mm p/occurrence). Operator obligations are extensive: operator is responsible for any and all permits, must clean up all trash and debris, must restore the property to original condition after use, cannot store any fuel on property, shall administer all parking along with the conditions/safety for all patrons and employees, etc. I also have a strong indemnity clause protecting ownership from loss or damages resulting from theft, vandalism, accidents, fire, conduct of persons, casualty, etc.

Once again, all good thoughts and comments.

I don't really have anything of value to add but I helped Burroak back in 08 at that warehouse. I worked one night sweeping and getting things ready for the new years. They paid me some small amount of cash but I got to pick whatever product I wanted from the store. They told me I could take whatever I wanted so I loaded the sh*t out of my car with everything I could carry and stuff in my car. It took me years to finally pop all of that stuff. I was pretty stoked but always figured they had to have a massive markup to let me take that much home for free. The other guys like Burroak who worked there more frequently always had tons of awesome stuff at our parties. Those were the days!