| By Applemanmark (Applemanmark) on Wednesday, September 26, 2001 - 11:27 am: Edit |
I've been offered an opportunity to work in a restaurant and earn equity to be used as a down payment to buy the place in a few years? What percent of sales would be appropriate to be set asside as equity? Also if anyone has had experience with this sort of thing what else could you tell me that would be useful. Thanks. And so you know, I changed my posting name from winzerman to applemanmark cause I like apples.
| By Chefspike (Chefspike) on Wednesday, September 26, 2001 - 12:18 pm: Edit |
I can't help ya.
Maybe Panini, or George, or Yankee.
Good Luck,
Peace, and now Justice.
| By George (George) on Wednesday, September 26, 2001 - 01:07 pm: Edit |
IMHO almost an impossible question to answer. Lots of unknown variables-
Annual sales amount
Real net (very difficult if not impossible to get from the outside)
Other liabilities
Is it for the property of is it just a lease.
If a lease how good is it and what's the duration
How to value your contribution fairly
Future market conditions in your area
This list doesn't scratch the surface.
I'd watch out for it myself. If you do decide to go for it after doing your homework make sure you have YOUR lawyer (a restaurant lawyer) go over EVERYTHING.
EVERYTHING should be in writing from the day you start giving up real cash money for the possibility of a share of who knows what in the future.
Just my opinion.
George
| By Peachcreek (Peachcreek) on Wednesday, September 26, 2001 - 03:38 pm: Edit |
One way of looking at it is if you were to buying the restaurant today, because that IS what you are doing. The only difference being that the payments are made to your loan debt in lieu of higher salary. If you do decide to go through with it, treat it as any other large purchase like real estate or a business. And you should be treated as any potential buyer.
| By Applemanmark (Applemanmark) on Thursday, September 27, 2001 - 11:50 pm: Edit |
Thanks, I have'nt heard from the guy since I wrote him my conditions.And I will use a lawyer and accountant in any case and it will most definitely be on paper.Its probably just pie in the sky.Thanks again I appreciate your words.