An old chestnut...the gift certificate from out of the very distant past

[JBloggs]

Also, everyone ...please SIGN your GC's for authentication.
I always print mine on a colored paper so they can't just photocopy them (they are numbered and signed as well and state NO CASH VALUE). Yes anyone can scan them etc, but not on my watch. At closing please make sure you have handed over copies of all outstanding GC's to the new owners. We had some floating around when we bought, NO name on them, No who they were for no numbers, no signatures, nothing.

 

[JBloggs]

So WHAT if it is a state law, holy cow...put a dang expiration on it. If someone were to fight it then say okay, I will extend the expiration for you. It is also the law not to drive 56 in a 55 MPH zone.
The things I hear make my grey hairs sprout I tell ya. Put an expiration date on the things or don't sell them at all.

 

[egoodell]

OO got and kept the GC money, not you. Tell your caller to go spend the night at THEIR house!
I'd never consider selling a gift certificate without an expiration date..

OO got and kept the GC money, not you. Tell your caller to go spend the night at THEIR house!
I'd never consider selling a gift certificate without an expiration date.

That's what I said...spend the night at their house!
BTW, where I live GC's do not expire, cannot put an expiry date on something that is purchased. Donations are something else.
.

OO got and kept the GC money, not you. Tell your caller to go spend the night at THEIR house!
I'd never consider selling a gift certificate without an expiration date.

That's what I said...spend the night at their house!
BTW, where I live GC's do not expire, cannot put an expiry date on something that is purchased. Donations are something else.

Is that a state law? What about all those dang plastic giftcards you can buy at Walmart and Home Depot etc. They all have an expiration date (don't they?). In fact, gift cards are big business because people often do not redeem them.
.

OO got and kept the GC money, not you. Tell your caller to go spend the night at THEIR house!
I'd never consider selling a gift certificate without an expiration date.

That's what I said...spend the night at their house!
BTW, where I live GC's do not expire, cannot put an expiry date on something that is purchased. Donations are something else.

Is that a state law? What about all those dang plastic giftcards you can buy at Walmart and Home Depot etc. They all have an expiration date (don't they?). In fact, gift cards are big business because people often do not redeem them.

Yes, it's a state law. I have no idea how that is regulated for the big boxes.
.

OO got and kept the GC money, not you. Tell your caller to go spend the night at THEIR house!
I'd never consider selling a gift certificate without an expiration date.

That's what I said...spend the night at their house!
BTW, where I live GC's do not expire, cannot put an expiry date on something that is purchased. Donations are something else.

Is that a state law? What about all those dang plastic giftcards you can buy at Walmart and Home Depot etc. They all have an expiration date (don't they?). In fact, gift cards are big business because people often do not redeem them.

Yes, it's a state law. I have no idea how that is regulated for the big boxes.

It's a state law here too. If one puts on an expiration date then the funds go to the state. What I do is put on the gift certificate that the value is protected against any price increase for a year. I don't check if they are over a year old, but if something like this turns up, they will pay the difference so I don't lose out.
RIki

 

[Arks]

If state law considers it the same as money, and it can't expire, you're probably legally bound to honor it. It would make me think twice about offering GC's in your state.
I don't guess anybody thought of things like this when the place sold, and resold, regarding whether such things are being taken on by the new owners or stay with the old owners. Or if they DID think of it, it should be in the sales contract somewhere.
I'm thinking mayby if I give GC's, I'll put a dollar amount rather than saying "good for a free night's stay". Like "Good for $[the current price of a room] off on a night's stay", or what ever amount off the GC buyer pays me. That way time and inflation work against the value of the GC, rather than in its favor.

 

[Samster]

We had lease-to-buy people here of a B&B here who did exactly what JB said a restaurant person did.....printed GCs, offered free stays, and kept deposits AFTER scamming the owners for 3 months taking all the money out of the business and then having to be evicted. So......since there are scams out there....I say no as you can't validate the gift certificate.
I would just say that you had no information from any previous owner about the existence of that gift certificate and you are not able to honor it. Which is the truth!

 

[JBloggs]

Arkie I mentioned, that as it IS in the contract. The sellers need to fork over the $ for any outstanding GC's. Not just WHEN they are redeemed.
PUT IT IN the contract, definitely. This is why I stopped selling GC's since we are for sale, and then I bent and sold a couple as one in the hand was better than three in the field.

 

[Don Draper]

Wow, as a buyer I would never agree to this. Assuming you've kept good records and know exactly what is outstanding I would expect 100% payment for any outstanding GC's, as well as any deposits you have on hand at the time of the sale. Might be more of a big deal here versus where you are because there were MANY outstanding GC's, you may not have that many.

 

[JBloggs]

At closing, all outstanding gc's need to be paid to the new owner. That is the way we had the clause. This is where I think the PO's did have some outstanding but never told us about them, since they used index cards for record keeping, and took all of them as well.
We had zero guest information, zero anything except a big box of expired directories and other things we had to renew and had expired. That was the other rqmt a buyer should insist upon, "all directories and current marketing must remain up to date and active." As closing takes so long these days they never renewed any of it. We started from scratch essentially. Had to pay NEW set up fees on a couple of them. Didn't know what worked and what didn't work either. Hard to tell when POs lie to you about revenue.

 

[egoodell]

At closing, all outstanding gc's need to be paid to the new owner. That is the way we had the clause. This is where I think the PO's did have some outstanding but never told us about them, since they used index cards for record keeping, and took all of them as well.
We had zero guest information, zero anything except a big box of expired directories and other things we had to renew and had expired. That was the other rqmt a buyer should insist upon, "all directories and current marketing must remain up to date and active." As closing takes so long these days they never renewed any of it. We started from scratch essentially. Had to pay NEW set up fees on a couple of them. Didn't know what worked and what didn't work either. Hard to tell when POs lie to you about revenue..

We keep records and protect the innkeeper by making the gift holder accountable for any rate increase after a year. This way if someone shows up 20 years down the road, the innkeeper will know the value of their gift certificate, and the gift owner knows they will have to pay the difference. Just makes common sense.
This way when we sell we will credit the buyer for full value of the gift certificate. You can't "know" that they will not be used. Very few of ours are not used.
Riki

 

[Samster]

At closing, all outstanding gc's need to be paid to the new owner. That is the way we had the clause. This is where I think the PO's did have some outstanding but never told us about them, since they used index cards for record keeping, and took all of them as well.
We had zero guest information, zero anything except a big box of expired directories and other things we had to renew and had expired. That was the other rqmt a buyer should insist upon, "all directories and current marketing must remain up to date and active." As closing takes so long these days they never renewed any of it. We started from scratch essentially. Had to pay NEW set up fees on a couple of them. Didn't know what worked and what didn't work either. Hard to tell when POs lie to you about revenue..

I agree...Listing any outstanding gift certificates and paying the new owners for the total amount of them would really be standard practice for any business.

 

[wendydk]

deleted

 

[wendydk]

deleted

 

[wendydk]

deleted

 

[Proud Texan]

OO got and kept the GC money, not you. Tell your caller to go spend the night at THEIR house!
I'd never consider selling a gift certificate without an expiration date..

OO got and kept the GC money, not you. Tell your caller to go spend the night at THEIR house!
I'd never consider selling a gift certificate without an expiration date.

That's what I said...spend the night at their house!
BTW, where I live GC's do not expire, cannot put an expiry date on something that is purchased. Donations are something else.
.

OO got and kept the GC money, not you. Tell your caller to go spend the night at THEIR house!
I'd never consider selling a gift certificate without an expiration date.

That's what I said...spend the night at their house!
BTW, where I live GC's do not expire, cannot put an expiry date on something that is purchased. Donations are something else.

Is that a state law? What about all those dang plastic giftcards you can buy at Walmart and Home Depot etc. They all have an expiration date (don't they?). In fact, gift cards are big business because people often do not redeem them.
.

OO got and kept the GC money, not you. Tell your caller to go spend the night at THEIR house!
I'd never consider selling a gift certificate without an expiration date.

That's what I said...spend the night at their house!
BTW, where I live GC's do not expire, cannot put an expiry date on something that is purchased. Donations are something else.

Is that a state law? What about all those dang plastic giftcards you can buy at Walmart and Home Depot etc. They all have an expiration date (don't they?). In fact, gift cards are big business because people often do not redeem them.

Yes, it's a state law. I have no idea how that is regulated for the big boxes.
.

OO got and kept the GC money, not you. Tell your caller to go spend the night at THEIR house!
I'd never consider selling a gift certificate without an expiration date.

That's what I said...spend the night at their house!
BTW, where I live GC's do not expire, cannot put an expiry date on something that is purchased. Donations are something else.

Is that a state law? What about all those dang plastic giftcards you can buy at Walmart and Home Depot etc. They all have an expiration date (don't they?). In fact, gift cards are big business because people often do not redeem them.

Yes, it's a state law. I have no idea how that is regulated for the big boxes.

It's a state law here too. If one puts on an expiration date then the funds go to the state. What I do is put on the gift certificate that the value is protected against any price increase for a year. I don't check if they are over a year old, but if something like this turns up, they will pay the difference so I don't lose out.
RIki
.

It's a state law here too. If one puts on an expiration date then the funds go to the state. What I do is put on the gift certificate that the value is protected against any price increase for a year. I don't check if they are over a year old, but if something like this turns up, they will pay the difference so I don't lose out.
RIki

That's a good way to handle it.
We're redeeming a gift certificate this weekend. Most of the time they're painless, but this one is rapidly becoming a PITA. Fortunately, they're just one nighters.

 

[Proud Texan]

OO got and kept the GC money, not you. Tell your caller to go spend the night at THEIR house!
I'd never consider selling a gift certificate without an expiration date..

OO got and kept the GC money, not you. Tell your caller to go spend the night at THEIR house!
I'd never consider selling a gift certificate without an expiration date.

That's what I said...spend the night at their house!
BTW, where I live GC's do not expire, cannot put an expiry date on something that is purchased. Donations are something else.
.

OO got and kept the GC money, not you. Tell your caller to go spend the night at THEIR house!
I'd never consider selling a gift certificate without an expiration date.

That's what I said...spend the night at their house!
BTW, where I live GC's do not expire, cannot put an expiry date on something that is purchased. Donations are something else.

Is that a state law? What about all those dang plastic giftcards you can buy at Walmart and Home Depot etc. They all have an expiration date (don't they?). In fact, gift cards are big business because people often do not redeem them.
.

OO got and kept the GC money, not you. Tell your caller to go spend the night at THEIR house!
I'd never consider selling a gift certificate without an expiration date.

That's what I said...spend the night at their house!
BTW, where I live GC's do not expire, cannot put an expiry date on something that is purchased. Donations are something else.

Is that a state law? What about all those dang plastic giftcards you can buy at Walmart and Home Depot etc. They all have an expiration date (don't they?). In fact, gift cards are big business because people often do not redeem them.

Yes, it's a state law. I have no idea how that is regulated for the big boxes.
.

OO got and kept the GC money, not you. Tell your caller to go spend the night at THEIR house!
I'd never consider selling a gift certificate without an expiration date.

That's what I said...spend the night at their house!
BTW, where I live GC's do not expire, cannot put an expiry date on something that is purchased. Donations are something else.

Is that a state law? What about all those dang plastic giftcards you can buy at Walmart and Home Depot etc. They all have an expiration date (don't they?). In fact, gift cards are big business because people often do not redeem them.

Yes, it's a state law. I have no idea how that is regulated for the big boxes.

It's a state law here too. If one puts on an expiration date then the funds go to the state. What I do is put on the gift certificate that the value is protected against any price increase for a year. I don't check if they are over a year old, but if something like this turns up, they will pay the difference so I don't lose out.
RIki
.

It's a state law here too. If one puts on an expiration date then the funds go to the state. What I do is put on the gift certificate that the value is protected against any price increase for a year. I don't check if they are over a year old, but if something like this turns up, they will pay the difference so I don't lose out.
RIki

That's a good way to handle it. How would one find out what their particular state's rules are concerning gift certificates?
We're redeeming a gift certificate this weekend. Most of the time they're painless, but this one is rapidly becoming a PITA. Fortunately, they're just one nighters.

 

[gillumhouse]

Birdwatcher said: But if you do give the good will of having him, it would be a great story and what a great thing if he would leave you a good comment?
The answer to will she honor this GC should be no - too many years of too many owners to honor it. But honoring it would be a great story for every scam artist who read about it. Yes, it is a good feelie story BUT everyone and his brother would be "finding" a GC from 20 years ago. I can just see it coming here - even though I am the original owner and have only been here 14 years.
My GCs are each original meaning each one is created specifically for the person receiving it and from the person giving it. Different artwork etc.
As for the way the box stores get the GCs depleted is the same way banks get rid of "dormant" savings accounts - the charge a "service fee" every month after a specified period of time until the balance is zero. Banks charge $2 per month. I do not know how long it takes to be dormant.

 

[wendydk]

At closing, all outstanding gc's need to be paid to the new owner. That is the way we had the clause. This is where I think the PO's did have some outstanding but never told us about them, since they used index cards for record keeping, and took all of them as well.
We had zero guest information, zero anything except a big box of expired directories and other things we had to renew and had expired. That was the other rqmt a buyer should insist upon, "all directories and current marketing must remain up to date and active." As closing takes so long these days they never renewed any of it. We started from scratch essentially. Had to pay NEW set up fees on a couple of them. Didn't know what worked and what didn't work either. Hard to tell when POs lie to you about revenue..

I agree...Listing any outstanding gift certificates and paying the new owners for the total amount of them would really be standard practice for any business.
.

I agree...Listing any outstanding gift certificates and paying the new owners for the total amount of them would really be standard practice for any business.

Not necessarily..the author of "Running a Bed & Breakfast for Dummies" talks about how buyers and sellers often negotiate an agreement about outstanding GC's. See her examples here.
As with any business (or residential) sale, absolutely everything is negotiable. Whatever both sides agree on is what happens.

 

[Morticia]

Also, everyone ...please SIGN your GC's for authentication.
I always print mine on a colored paper so they can't just photocopy them (they are numbered and signed as well and state NO CASH VALUE). Yes anyone can scan them etc, but not on my watch. At closing please make sure you have handed over copies of all outstanding GC's to the new owners. We had some floating around when we bought, NO name on them, No who they were for no numbers, no signatures, nothing..

Also, everyone ...please SIGN your GC's for authentication.
I always print mine on a colored paper so they can't just photocopy them (they are numbered and signed as well and state NO CASH VALUE). Yes anyone can scan them etc, but not on my watch. At closing please make sure you have handed over copies of all outstanding GC's to the new owners. We had some floating around when we bought, NO name on them, No who they were for no numbers, no signatures, nothing.

We do all of this and we had some 'blank' ones show up from the PO's. This is from the OO! I have copies of all the GC's we wrote.

 

[Morticia]

So WHAT if it is a state law, holy cow...put a dang expiration on it. If someone were to fight it then say okay, I will extend the expiration for you. It is also the law not to drive 56 in a 55 MPH zone.
The things I hear make my grey hairs sprout I tell ya. Put an expiration date on the things or don't sell them at all..

So WHAT if it is a state law, holy cow...put a dang expiration on it. If someone were to fight it then say okay, I will extend the expiration for you. It is also the law not to drive 56 in a 55 MPH zone.
The things I hear make my grey hairs sprout I tell ya. Put an expiration date on the things or don't sell them at all.

The PO's did this and we still had them show up.

 

[Morticia]

At closing, all outstanding gc's need to be paid to the new owner. That is the way we had the clause. This is where I think the PO's did have some outstanding but never told us about them, since they used index cards for record keeping, and took all of them as well.
We had zero guest information, zero anything except a big box of expired directories and other things we had to renew and had expired. That was the other rqmt a buyer should insist upon, "all directories and current marketing must remain up to date and active." As closing takes so long these days they never renewed any of it. We started from scratch essentially. Had to pay NEW set up fees on a couple of them. Didn't know what worked and what didn't work either. Hard to tell when POs lie to you about revenue..

At closing, all outstanding gc's need to be paid to the new owner. That is the way we had the clause. This is where I think the PO's did have some outstanding but never told us about them, since they used index cards for record keeping, and took all of them as well.

The PO's gave us a list of the outstanding GC's but they missed some. They also did everything on 3x5's excpet when we asked about the outstanding GC's...then all of a sudden there was a comuter db they could check. Annoyed us no end that they left with a db of guest info after telling us it didn't exist.