I'm opening a family entertainment venue in December. I had planned on opening under my own brand but I've been presented with a partnership opportunity that I'd like to pursue instead.
The owners of "Company B" and I hit it off at a conference a few weeks ago as we share the same vision for rapid expansion and creating a national brand. They already have a strong web presence, SEO, marketing strategy, and booking agent. All of which I need. They want a presence in my market and I provide them with more brand recognition and somebody dedicated to opening and running shop.
We need to find fair partnering terms. It wouldn't be structured as a franchise where they control the product and I pay licensing fees or a percentage of revenue. They don't want to take control of my business and tell me how to run it but want it to be a mutually beneficial agreement.
Here's what I think is fair. All revenue for my location is paid directly to my business account. For the services Company B provides and we both benefit from they send me an invoice. This could be marketing, trade show expenses, web hosting, booking fees, etc.
Where it gets tricky is how to handle growth. By combining resources we want to open three more locations in the next year and over 50 locations within five years. How would you structure the funding and revenue share of those locations? If one party decides they want out what is the exit strategy?
Lastly, what questions need to be asked that I'm not asking here?