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sisterchef
08-16-2013, 02:44 AM
Hi;

I'm very happy I found this site; so far I've found some very useful information.

Here's my story. I am a professional chef who presently works as a private chef on a luxury yacht in South Florida. I've met a gentleman who is a very successful business man. His business is insurance and he's basically retired now. He's 70 years old, very sharp and a very nice man. That being said, he is very interested in possibly opening a mid-high end restaurant here in Miami and he wants me to run the place for all intents and purposes. I have 10 years service experience and 20 years in high end cooking. I would be running the kitchen first and foremost and hire front of house management. He would be a full investor. He's looking at 2/3rds on his side and 1/3 on my side for the investment. He said he will give me the 1/3rd at 5%. I see this as a loan that would have to be repaid before I see profits.

My question is; how do we split profits and repayment of the 'loan'? I will do all the work for what I can tell and I'm fine with that. By looking at this site there are ideas about 34/66 splits, 50/50 splits etc. I'm sure that if we don't go 50/50 at some point in the future, there isn't much hope for the partnership. Reading these threads it seems like anything else would cause a rift.

Should we split the profits 50/50 and his 50% would pay back the loan while I get the other 50%? Or should we split 50/50, 50% allocated to the loan and the other 50% profit side would be split 90% for me (because I do all the work ) and 10% for him? Or should we just have him take 66% for the loan and split the 34% equally and then when the loan is paid, we split everything 50/50? I'm sure that there are other types of splits and I'd be happy to hear about them.

I'm quite confidant that this could be a really nice project. This man has a lot of money to invest (looking at around 500K for now) and he's not hurting for a return right away. I would need to survive though so I don't know if I should take a salary or just a %.

All info would be useful. Thanks so much for sharing your knowledge

sisterchef
08-16-2013, 03:00 AM
I'll just add that he stated that if the business fails, I won't owe anything.

Thanks

Paul
08-24-2013, 11:38 AM
Congratulations, that’s a very exciting opportunity.

He sounds like a fair man.

It probably should be 66/34 based on the investment that he offered. You would pay back the loan from your part of the profits. But, you also get a chefs salary.

He doesn’t really need to make it 50/50, but if he does that would great. You can do quite well with your salary and 1/3 of the profits.
Probably want to add a few conditions such as that he can’t dilute you, can’t sell without your agreement, can't overide your operations decisions and things like that.

But, otherwise it sounds like a great opportunity, although being a chef on a yacht isn’t too shabby either!

He obviously has faith in you, $ 500,000 worth!

Good luck, sounds great.

Business Attorney
08-25-2013, 09:06 PM
You have left out one very important factor. Are you getting a salary PLUS a percentage of the business and profits, or is your share the only amount you will get?