I have kind of a business arrangement / franchise potential
Hi... I have kind of a business arrangement / franchise potential question. Where I am the franchisor.I have a small chiropractic business I am expanding. I have a guy that is struggling in practice. He is a good chiropractor and great guy but just not business savvy and I have the opportunity to kind of partner up with him (bail him out so to speak) by helping him get his business going by converting it to a franchise location for me or partnering up with him in some way.Advantage to him is he can break even or make money quickly to support family, etc. using my model (well in theory). He is bleeding about 1k a month right now and has been at it 1.5 years with just a 3k month overhead so he aint exactly growing too quickly.Advantage to me is that I can add another location to my company fairly quickly/easily (be our 3rd) in an area I would love to have a location with a doc ready to go... so that is my drive to make this happen.So the question is this. If I move forward with this, I am struggling on ideas of how to arrange the 'deal' with him.Not sure I want to take over his lease for him (1.5 years remaining) because he could of course abandon ship. Could just add my name on to lease and take over his operations and hire and train him. That seems clean only because he is still on hook for lease but why do that if don't have to be on it is my struggle there.Next option I thought is have him sign on as franchisee and just add addendum for no Franchise Fee, No royalties, etc and maybe just defer it all along with paying back any money I spend to get this going (be about $15K initially most likely to get him up to speed and hit marketing hard for several months)I have come up with scenarios and typed them out but didnt want to attach here because feel like it will be too overwhelming to read my potentially terrible scenarios.So my question is... Can you give me some ideas on a way to employ or partner with a guy in a situation like this where it makes the most sense.Perhaps some partnership hybrid where he can't abandon ship if all is not going well. So maybe he stays on lease and we just have an agreement with him that we take over his finances of the office and hire him as 1099 for low wage plus percentage as turns profit.Or perhaps a modified franchise option as mentioned above with a loan to get him going and he starts implementing my systems. Starts paying an amount per month towards these things on a profit level reached.Anyway.. hope this is a reasonable question you can give me some insight on.While I will probably consult an attorney in my area I like checking with this service as well so I can get an affordable second opinion and maybe just ideas of creative fair ways to structure it but most importantly any pitfalls to watch out for that I would not see coming or know about.
Counselor at Law
I'd like a second opinion just to make sure the first
I'd like a second opinion just to make sure the first lawyers information was correct. I'm in a very bad partnership with my ex. She has made my life absolute hell and uses the contract to force me to stay in because she cant run the business without me, but doesnt ever want to listen to me. I'm just tired of it. we've agreed on multiple buyout agreements and she backs out of them everytime and she is slowly running the business into the ground so i just want to be away from her and the business before she does anymore damage and stresses me out anymore. The voluntary withdrawal section 30 says after my notice and 90 days it will lead to dissolution sections 39 40 and 41. So then she should be obligated to pay back my debts or split the remaining assets pretty much. Im accepting a loss but it forces the business to be split up without any further mediation or arbitration? If this is correct and i atleast get my half of the property, then ill be happy just to be out. I just want to make sure im not opening myself up to voluntarily forfeiting my half of the partnership with no returns. I also want to make sure its ok to draft up the withdrawal statement myself. Simply saying that i am withdrawing with this much debt from the business that i wish to be covered otherwise we will continue to dissolution to cover debts. Does this seem correct?
I am starting an LLC with a 50/50 partner. We will choose a
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