
4 minute read
Prudent Partnering
•
Entering into a new partnership is exhilarating. You developed a winning concept, secured funding and found the perfect location. You and your new partner are in perfect harmony, and your future together looks bright. What could go wrong?
The rhetorical answer is, of course, “a lot.”
Much like the beginning of a romantic courtship, it is natural to get swept up in excitement at the expense of planning to maintain a long-term partnership. A partnership is a marriage. You are commingling finances and making mutual promises to bind your lives together in ways that require a legal process to unbind. You may even spend more time with your partner than your actual spouse. For these reasons, treat your operating agreement with the same care you would a prenuptial agreement:
• Don’t rush. In the sprint to secure a lease, permits and licenses, many new partners assign the operating agreement a low priority. However, the negotiation process often reveals “deal breakers,” e.g., a partner’s unwillingness to commit to terms they orally agreed to, learning you made incorrect assumptions about a partner’s ability to run the business or fund additional capital, learning of a history of unflattering lawsuits in the due diligence process, etc. Resolving terms in writing before signing a lease with a personal guaranty is advisable.
• Pay attention to your partner’s negotiation style. Did your partner present written terms that are fair, or skewed heavily in their favor despite a 50-50 partnership? Is your partner willing to compromise, or are they engaging in strongarm tactics to get their way? Are they able to have difficult conversations and resolve conflict? Your partner is showing you the type of person you should expect to deal with for the duration of the partnership.
• Communicate about roles and expectations on a granular level. Do you expect your partner to be present every day to manage the business? Should they expect a management fee? If one partner owns other businesses, how do you handle potential conflicts of interest? Do you share the same outlook on expenses? How will you resolve a tie vote? Resolving important topics in advance may be uncomfortable but spares you resentment, conflict and attorney’s fees.
• Talk about the end. Death, withdrawal of a partner and bankruptcy must be considered and planned for. What are a partner’s bad acts that warrant terminating the partnership for “cause”? Should the wrongdoer incur a penalty?
Communicating with your new partner on these topics provides the partnership with stability and increases your odds of “happily ever after.”
Tuckey Law, LLC covers all of your legal needs for opening.
– You can find the Tuckey Law ad on page 2.


Foodservice Retail Grocery Meat Processing Deli Bakery
Sales and Service:
Saws
Fryers
Slicers
Rotisseries
Tenderizers
Patty Machines
Mixer/Grinder Scales
Pineapple Cutters
Vac-Pac Equipment
Orange Juice Machines
Food Processing Equipment
Chicago, IL 800-921-9151
St. Louis, MO 800-783-0187

Minneapolis, MN 800-454-3441
Milwaukee, WI 414-281-5204
Indianapolis, IN 800-921-9151

Decatur, IL 800-783-0187 berkelmidwest.com
Supplies:
Vacuum Seal Bags
Labels for Scales
Patty Paper
Patty Boxes

Ishida Wrapping Film
USDA-Approved Machine Oil
Seasoning/Breading
ACA celebrates its tenth year since incorporating. The American Cider Association is an organization of cider producers in the United States. Their mission is to grow a diverse and successful U.S. cider industry by providing valuable information, resources and services to their members. Campbell Soup Company plans to consolidate its Snacks offices in Charlotte, N.C. and Norwalk, Conn. into its headquarters in Camden. Over the next three years, the company plans to invest approximately $50 million to enhance its Camden facilities to drive greater creativity, collaboration and career development.
Coffee Fest New York 2023 will be held Mar 5-7, 2023 at the Javits Center. Three days of best-in-class educational content featuring the specialty beverage industry’s thought leaders and innovators. An Expo Hall featuring the latest food and beverage products, retail solutions and technologies. Hilton announced the launch of Spark by Hilton, the newest addition to its portfolio of world-class brands. Following extensive research, the introduction of Spark by Hilton fills an open space in the industry by creating a new premium economy lodging option to meet the needs of even more guests and owners seeking value, quality and consistency. Ina Garten, the Barefoot Contessa, is back with new episodes of her multiplatform series Be My Guest with Ina Garten which premiers Mar. 5th on the Food Network. She welcomes friends old and new to her East Hampton home for in-depth conversations, great food and trips to her favorite local spots. In 2017, the cold brew coffee market was valued at USD 707.17 million. From a regional perspective, North America held the largest market share, valued at USD 388.03 million. The cold brew coffee market size is estimated to grow by USD 439.93 million from 2022 to 2027 at a CAGR of 7.73% according to Technavio. Marriott International Marks Another Year of Strong Acceleration in Signings. The company signed an average of two deals a day, for a total of 726 management and franchise agreements, an increase of 21 percent over 2021 signings, representing nearly 108,000 rooms. Nestlé Health Science announced a $43 million investment to expand its manufacturing facility in Eau Claire, WisVconsin. The investment will add two new production lines to increase manufacturing of highdemand ready-to-drink consumer products. PLMA’s- Private Label Manufacturers AssociationAnnual Meeting & Leadership Conference will be held March 22-24, 2023, in Orlando, Florida at the Hyatt Regency Grand Cypress. The keynote speaker for the event will be April Rinne, who will discuss “Leadership, Relationships, and Partnerships in a World of Flux.” Star Expos along with the Kansas State Fair announce a brand-new expo coming to Hutchinson and the Kansas State Fairgrounds Mar 30-Apr. 1, 2023. Partnering with the Kansas State Fair and Visit Hutch gives the Kansas Ag Expo the opportunity to showcase a more diverse expo to include manufactures and a wide variety of products and services.
The Inaugural Tampa Bay Wine & Food Festival launches April 2023 with one-of-a-kind dining experiences, a chef showdown competition and an exclusive grand tasting event Apr. 12-15th, 2023. The four-day foodie festival will showcase the Tampa Bay area’s culinary genius, featuring the region’s most notable chefs and celebrated restaurants from Tampa, St. Petersburg, and more.