Corporate Law Verbal Partnership agreement

[e11abe11a]

I became a "percentage partner" in an equipped beauty salon nine years ago. The salon was in the "red" and I agreed to come in as an owner and work the business up. Six years ago, I had my name added to the lease along with his. The lease has two years left. I have handled every area of the business-management, sales, bookkeeping, having taxes done & paying taxex due for both of us, paying subcontractors, maintenance, etc. During my operation and management, we have acquired equipment, etc. for the salon. My partner has not taken part ; clients don't even know he exists. I have paid personal debt of his(ranging from $300 to $610./mth) over the nine years. Back in April, I wrote telling him that the refund the shop was due needed to be used for repair and/or replacement of original equipment. I got no response or money. Ten days ago, I wrote a letter of intent to buy him out of tangible assets and he has not responded. What do I do to dissolve our agreement and become owner of the salon?

 

[Michael Wechsler]

I became a "percentage partner" in an equipped beauty salon nine years ago. The salon was in the "red" and I agreed to come in as an owner and work the business up. Six years ago, I had my name added to the lease along with his. The lease has two years left. I have handled every area of the business-management, sales, bookkeeping, having taxes done & paying taxex due for both of us, paying subcontractors, maintenance, etc. During my operation and management, we have acquired equipment, etc. for the salon. My partner has not taken part ; clients don't even know he exists. I have paid personal debt of his(ranging from $300 to $610./mth) over the nine years. Back in April, I wrote telling him that the refund the shop was due needed to be used for repair and/or replacement of original equipment. I got no response or money. Ten days ago, I wrote a letter of intent to buy him out of tangible assets and he has not responded. What do I do to dissolve our agreement and become owner of the salon?

I don't know. What does your partnership agreement state with regard to this kind of a situation?

 

[muggsyj]

This is not legal Advice!


Just a quick add to your questions.

Something i am trying to figure out is do you pay your partner any benefits in reflection to the business? If so why do not freeze the dividends until the partners half of the debts are cleared? Also, if you are doing all the work then it is clear you only have an investment partner and can command a higher stake in the business pay in requirement to you managing all the duties. If your partner is not happy with this arrangement then tell them to get involved in the day to day running.

This is a why it is very important to get your views clearly stated in a partnership agreements. Partnerships can change there agreements at any time to suit the business needs, you may need to review yours. The problem is you have taken it upon yourself to take on all the burden and have missplaced the importance of your partner pulling there weight.

Take Care.

Mark