How do I find out if a massage clinic’s gift certificates are still outstanding?
Ask for a register of every certificate sold, with date, amount and whether it was redeemed. Without one, ask how the clinic tracks them, and settle in the sale terms who honours the ones still outstanding after the clinic changes hands.
Start with the records. A well-run clinic keeps a log, often in its booking system or a ledger, showing each certificate number, date sold, amount and use. Ask to see it, and ask for a recent snapshot of what remains unused.
Check it against the books. Your accountant can tell you how sales of certificates were recorded and whether money received for unused ones is counted as income or set aside. If the numbers do not line up, ask why.
If the records are thin, ask the front desk. They usually remember how certificates are redeemed, which ones come back, and whether any are very old. Look at the wording on the certificate itself for expiry or restrictions, and ask your lawyer what that wording means for the clinic. Finally, settle who carries the obligation. The buyer will likely be asked to honour certificates after the sale. Agree on an adjustment or a holdback in writing, so a customer arriving with an old certificate becomes a minor matter and not a dispute. Keep in mind that customers often keep certificates for a long time, and some may turn up after the sale. Ask how the clinic has dealt with old ones in the past, since that history shows whether the clinic is generous, strict, or has never really thought about it.
Key takeaways
- Ask for a register of certificates sold and redeemed.
- Have your accountant check it against the books.
- Settle in writing who honours outstanding certificates after closing.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentWhat are accounts payable?
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