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Business relation agreement or partnership agreement, how to proceed?

Houston, TX |

i have been approach for investor and business owners of the same kind of industry, they want partner or operate under my business name and operation model, what kind of agreement i can make with them in order to keep all legal rights of the name and get a percentage of their gross revenue but at the same time they be the owner of their locations but operate under my rules, franchise agreement for what i know is very expensive and will not be an option

Attorney Answers 3

Posted

You don't really provide enough information to answer. Depending on the relationship you might want to set up a formal business entity like a corporation or LLC and assign a specific ownership and management interest to each party. Alternatively you might keep your interests separate but enter into a joint venture or profit sharing agreement. You should certainly consult with an attorney. Do it yourself is a very bad idea in terms of protecting your rights in these types of situations. I can recommend someone in Texas if you wish.

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Posted

It sounds like a joint venture would be a good option for you. This way, you can retain a good amount of control. But, you really need a tax attorney to help you choose the best structure. You don't want to be surprised with a big tax bill.

My comments are NOT LEGAL ADVICE. They are for informational purposes only. Actual legal advice can only be provided after you have signed an engagement letter. Answering this question does not create an attorney client relationship. Remember that without attorney client privilege you could possibly divulge information that can hurt your legal rights in the future. I am a tax attorney in Miami Florida. I can help you with your federal tax issues via a secure client portal if required.

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The business model you describe is not uncommon. However, establishing a business owned by others, while protecting your interests and investment entails several complex and variable legal issues which are poorly suited to online discussion. I strongly urge you to consult with an experienced business attorney to discuss the safest and most effective way to achieve your objectives while avoiding legal entanglements. My firm would be happy to assist you. You can contact me at WFB@BroemerLaw.com.

Your question has been answered as a courtesy. This is not paid legal advice. Nothing in this communication is intended to create an attorney-client relationship. Unless expressly stated otherwise, nothing contained in this message should be construed as a digital or electronic signature, nor is it intended to reflect an intention to make an agreement by electronic means.

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