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Old 03-30-2013, 11:05 AM
 
1 posts, read 1,562 times
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I been in the restaurant buisness for 14 years a few of my really close co workers went
off on there own and opened a independent restaurant with now over 50 years experience and they want me to buy 10% of the restaurant for 20,000. Which includes 10% of any new locations there planning to open . Im a little confused as to what my rights and profits will be any help ?
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Old 03-30-2013, 11:35 AM
 
Location: San Francisco Bay Area
15,716 posts, read 16,911,078 times
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You should formalize the agreement (maybe even consult an attorney) in writing so that there are no disagreements or confusion down the road.
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Old 03-30-2013, 09:06 PM
 
2,064 posts, read 3,948,605 times
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+1.

this is the type of situation where problems can arise later and it's much better to have an agreement set up in writing before getting to a problem.
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Old 03-31-2013, 11:21 AM
 
Location: North Idaho
25,452 posts, read 33,452,988 times
Reputation: 52662
If you are confused about what your rights and profits are going to be then don't invest. This is not a good investment for you personally because you don't understand it.
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Old 04-10-2013, 02:49 PM
 
12,134 posts, read 11,332,556 times
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Quote:
Originally Posted by Armando1980 View Post
I been in the restaurant buisness for 14 years a few of my really close co workers went
off on there own and opened a independent restaurant with now over 50 years experience and they want me to buy 10% of the restaurant for 20,000. Which includes 10% of any new locations there planning to open . Im a little confused as to what my rights and profits will be any help ?
I was told that during a storm the first ship to sink is a Partnership.
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Old 04-10-2013, 03:31 PM
 
Location: US
20,891 posts, read 20,389,178 times
Reputation: 16799
Quote:
Originally Posted by Armando1980 View Post
I been in the restaurant buisness for 14 years a few of my really close co workers went
off on there own and opened a independent restaurant with now over 50 years experience and they want me to buy 10% of the restaurant for 20,000. Which includes 10% of any new locations there planning to open . Im a little confused as to what my rights and profits will be any help ?
$20,000 for 10% is A LOT of money for a restaurant without real estate. Restaurants are actually cheap businesses to purchase if the real estate isn't include. What are the sales? How do they justify 10% of the company is worth $20,000?

We have owned four restaurants from a small cafe with seating up to 40 people to currently a large restaurant with seating up to 400 people. I personally would never recommend a partnership for a restaurant(s), yet alone a 10% share partnership. You would need to get everything in writing and $20,000 would be worth hiring an attorney to draft the agreement.
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Old 04-10-2013, 03:42 PM
 
28,461 posts, read 75,397,493 times
Reputation: 18525
What do your partners "need" your $20,000 for? Would they be unable to borrow this minor sum through other channels? If the OP has 14 years of experience odds are they well know how often resturants fail / go into the red. If / when things pull out of the tailspin / get back into the black the various accounting entries often don't tell the whole story of which "owners" went without any pay for how long. Are you prepared to "trust" that things will be handled fairly???
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Old 04-11-2013, 08:35 PM
 
Location: Here.
15,003 posts, read 13,761,463 times
Reputation: 17592
Are there 9 other 10% investors? In other words, would you have an equal say in what goes on? Or, alternatively, is there one person who will have a majority share, and do you completely trust that person? Those would be the only 2 viable options for me. And of course I would tell them to give me a legal agreement to review (with legal counsel) at my leisure.
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Old 04-16-2013, 09:18 AM
 
28,900 posts, read 48,778,953 times
Reputation: 46278
I don't care how good your friends are. Everything. In. Writing.

And if they don't show you how they spend every dime, including their take-home pay, then walk.
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Old 04-17-2013, 09:30 AM
 
19,277 posts, read 58,527,118 times
Reputation: 35127
It can work. I know of someone in a similar partnership. Since he has an accounting background and is a penny pincher and has complete access, his expertise is vital to the whole group.
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