There is a restaurant for sale me and my wife are looking to purchase or become partners. The asking Price is 475k. We are meeting Monday to talk about possible partnership deals and i have no idea what a fair deal would be. Me and my wife will be running it with salary and they will be silent partners. Here's what I am thinking right now.
They receive full asking price of 475k. We put up 30k for 1st month operating cost as a "buy in". Me and my wife receive a salary of 750$ a week with possible bonus and health insurance. This is on the low end for a manager/GM in our area. So now every month they take 85% of net profit as a payment for the 475k and 15% goes to an emergency fund for things like freezer breakdown or an emergency. After the 475k is paid back we are 50/50 partners. The one catch is we would want a buy out clause that allows us to buy them out at why time after the principle is paid at a PRE determined price. They dont really want to stay In the buisness but trust us to run the place and make them money as opposed to just sellimg it so think a buy out is inevitable. Am I way off on the terms, does it seem reasonable?