Running a Restaurant/operating partner


Hi ,
Thank you in advance for taking the time to read and answer my question. Here is the situation , i am the franchisor for a bakery. My friend is the franchisee. Since he has no experience in running the franchisee , he asked me to run it for him , at least until he gains some knowledge , for a minimum of one year or more. I am exploring the possibilities of this agreement . Should i be an operating partner , with 10 % ownership and continue operating for him for the life of the franchisee  ( and does 10% means 10% in profit and loss ) or should i be only paid a fixed salary , or should i be paid a % salary out of gross sales ?

What I would suggest is that you would be paid a salary. The best way to be fair to both of you, I would suggest that you would receive a percentage of the net profits either quarterly or yearly. This arrangement would give you incentive to work hard just like you were an owner. If the business does well you would receive nice bonus checks if the business does not do well you would still receive your weekly pay check. If the business does not do well you would still be able to live and be paid. This seems to be the fairest way for both of you to proceed. The reason that I say on the net profits is the only way to be fair to the owner of the company. If he or she does not make money you would not receive any bonus checks and the only way to do this is on the net profits not the gross. The gross number really means nothing since it is just sales the net would be after all expenses.. Good luck to you and let me know if I can help in any other way..


Running a Restaurant

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Robert Lagonia


I am well versed in most areas of the restaurant industry. I have had 30 years of experience in Setting up, designing, menu planning, food and labor costing and the full build out of 6 restaurants. I also have a lot of knowledge in the laws of NY state.In addition I have extensive knowledge in the golf industry from food and beverage to the operations of a private club.


I have owned built and operated 6 restaurants from fine dining to pizzeria's. My experience spans over 30 years in this industry. My areas of expertise are: Food and beverage, Purchasing, food costing, menu planning as well as the daily needs of a restaurant. I have extensive knowledge in the full build out of a new restaurant from the ground up. I have also owned and operated the food and beverage operations in a private country club. My knowledge in the golf industry is fairly extensive and can answer most questions in this area as well.

Board of directors at private country club Fish and game club member Austerlitz Historical Society Nys magistrates association

High School diploma Associates science degree

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