I am going to spin off a new branch of a franchise away from my father in law and his brother, they are basically living off me currently. They are willing to let me do this, and take several key clients with me, but they are also fairly greedy and will want to keep as much as possible. Can anyone suggest some steps to negotiate such a situation? They want me to stay on, but I am a much more sophisticated business person (by far) and need to spread my wings. I can run loops around them if I was not constrained by their 1920`s style of pinch a penny, no training, no risk, no investment, lack of goals, direction, plans etc..
I don`t have the needed capital to startup on my own, so I really need their help, but don`t want to give up the farm. I could probably be just fine in less than 1 year, 18-24 months FOR SURE.
Any advice to get them to the table, steps to negotiate a parnership, etc. I don`t know where to start, and surely can`t rely on them for any advice.
A) Should I offer to "buy my clients" from them?
B) Should we go 51/49 in the new corp, they provide startup/operating capital, I provide sweat for 2 years?
We don`t need a lawyer, they do have a good lawyer and I have one lined up when needed. I am not yet to the operating agreement stage, I need to talk numbers first. We can hash out the operating part once the numbers are lined out.