So a friend of mine was practically a franchisee of a kiosk at the Grand Prarie Premium Outlets. The actual franchisee is a moron and would rather pay people to work there than work it himself. The distributor of the product has told my friend he doesnt want moron coming back and suggested he take it over. The mall has approached my friend as well, stating that this kiosk is the best kiosk they have and they'd really prefer to keep it. My friend has come to me to invest. He doesnt want to use all his money on start up fees when he begins the lease under his name.
The lease is 1800 dollars per month (i hear thats a great price) because it was the first kiosk there.
It has great location. Its first in line and right next to a main entrance and the closest to the food court.
The startup would be a deposit of 1800 plus first months rent of 1800 plus the first week of product.
I looked at his books and in most months the kiosk makes 15,000 bucks. In bad months, like january, it makes 5,000. Id say it averages 12,000 or 13,000.
My friend said i could join to the lease or we could draft another legal agreement on the side if i just wanted to invest for startup.
Would i need an LLC? Im thinking yes. Should i invest 2,000 toward start up? My friend said we would split everything 50-50 until i made my investment back and then we would negotiate what percentage of the profit i would receive going forward. He threw around the phrase "60-40" which peaked my interest since i would not be working the stand and only making trips once a week to the distributor to pick up the product.
Please help! TIA
[This message has been edited by nwe (edited 5/24/2013 11:36a).]
The lease is 1800 dollars per month (i hear thats a great price) because it was the first kiosk there.
It has great location. Its first in line and right next to a main entrance and the closest to the food court.
The startup would be a deposit of 1800 plus first months rent of 1800 plus the first week of product.
I looked at his books and in most months the kiosk makes 15,000 bucks. In bad months, like january, it makes 5,000. Id say it averages 12,000 or 13,000.
My friend said i could join to the lease or we could draft another legal agreement on the side if i just wanted to invest for startup.
Would i need an LLC? Im thinking yes. Should i invest 2,000 toward start up? My friend said we would split everything 50-50 until i made my investment back and then we would negotiate what percentage of the profit i would receive going forward. He threw around the phrase "60-40" which peaked my interest since i would not be working the stand and only making trips once a week to the distributor to pick up the product.
Please help! TIA
[This message has been edited by nwe (edited 5/24/2013 11:36a).]