Put the working relationship in writing

Describe the roles separately

Write down who contributes capital, who works in the business, who signs guarantees and who makes decisions. These roles may overlap without being identical. Avoid assuming that equal ownership necessarily means equal time, pay or authority.

Confirm whether the proposed ownership and management structure is permitted by the franchise and financing arrangements. Obtain independent legal and tax advice before treating a shared understanding as a complete agreement.

Discuss an ordinary disagreement

Choose a realistic decision, such as hiring a manager, changing hours or retaining cash instead of distributing it. Ask how the owners would decide and what happens if they cannot agree. Define access to records and the information each person expects to receive.

Discuss absences and unequal workloads openly. A temporary favor can become a recurring responsibility without anyone explicitly agreeing to the change. Record how compensation and responsibilities will be reviewed rather than relying entirely on goodwill.

Plan a change in the relationship

Consider what happens if someone wants to leave, cannot work or cannot contribute additional money. Internal agreements and third-party obligations may operate differently. This guide is an editorial planning resource, not a substitute for tailored documents or a reported account of a particular partnership.

Put it on paper

• Separate ownership, work, guarantees and decisions.
• Create a process for disagreements and record access.
• Obtain advice about departure and changed circumstances.

Continue with the franchise research checklist, our FDD guide, and the research directory.