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Restaurant/Brewery revenue/cost split advice needed

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  • #16
    Originally posted by frenchc View Post
    I like the idea of talking to a business attorney, but....that could be expensive.
    Pay a lawyer now or pay one later when you're bankrupt and being sued by your former business-mate. I know which I would prefer.

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    • #17
      Originally posted by frenchc View Post
      I like the idea of talking to a business attorney, but....that could be expensive.
      Frankly, given the complexity of the situation, it'd be worth every penny to talk with a business attorney. I've been in the construction industry for the past 20+ years, and have seen many instances where lawsuits get filed because people's expectations of the business arrangement aren't well-defined beforehand.

      It is entirely possible that after consulting an attorney, you decide this isn't going to work satisfactorily for everyone. In the long run, that's a much better deal than ending up in court on the receiving end of a lawsuit.

      Protect yourself! And good luck!
      Kevin Shertz
      Chester River Brewing Company
      Chestertown, MD

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      • #18
        Shared space

        Legally I think you are toast with that arrangement unless the production and storage of the beer can be totally secured from the restaurant and they have no access to it and separate taps, maybe..TTB rules and all. If the brewing side is secured and you have separate taps, you could "sell" them kegs and food would come from them. If you guys are using the same space for the restaurant and taproom, e.g. rest seating area doubles as taproom, I think your out of luck.

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        • #19
          Is it possible you could rent out the whole place and sublet to a restauranteur? That would give you a fair bit more control than a dual tenancy. Still not ideal.

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          • #20
            Originally posted by frenchc View Post
            I like the idea of talking to a business attorney, but....that could be expensive.
            You could go in for a consultation and get some ideas about how to structure the arrangement. Paying for an hour or two of time for a local attorney who works with small businesses should not be outrageous unless you go to a large firm. Where you need to spend your money most is how you draft the documents spelling out the venture between you and the other party but you shouldn't lock yourself into something until you have had a chance to walk through the risks and benefits of various options. It won't be cheap to get an attorney who practices in business formation to do all the paperwork but it will be a hell of a lot cheaper than litigating a bad breakup. I'm currently litigating on behalf of a (former) partner in a restaurant where things went south and they had a poorly constructed partnership agreement. Three partners, three law firms and they have surely spent several times what it would have cost to have done things right in the first place. If we end up taking this to trial we will have three broke partners and have to liquidate the restaurant just to pay off whoever wins. A real mess for everybody.
            DFW Employment Lawyer
            http://kielichlawfirm.com

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            • #21
              Lease space for Restaurant owner

              hey everyone, i had a question on this old topic. We are starting a brewery which we are going to "buildout" a food prep area. A local and small restaurant owner that makes amazing burgers recently left a horrible location spot and put a lot of money into his space (which he was leasing from someone else). He obviously lost a lot except he still has all the equipment. fridges and freezers/hood and grill and fryer etc..

              Blue boar burgers could use our food prep space as a location for his business. How much for lease?


              he makes the profit on the food and we keep the profit on the beer ... how do people order? how do we split the profits in our POS? Shopkeep?

              does anyone have any examples of other breweries that do something like this? thanks all

              James

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