Forums: Discussions for entrepreneurs and small business.

Hello,

I am setting up a business and I have approached someone who has established a name and has a strong brand presence. He is interested to parnter - I can use his name for PR, and has suggested we establish a partnership where he gets a % of the sales at a unit level - for example - 5% of the profit when a unit is sold.

Does anyone have experience with this type of partnership, not sure how to setup an agreement to measure his involvement etc.

Your question didn`t come through too clearly but in the US you would need a partnership or agreement or articles of formation that clearly spells out what each of you is contributing (it can include mentorship etc.), how profits will be divided (after expenses), and how dissolution of the partnership can occur.

Looks like you`re in Australia so my suggestion is that you check with a good attorney in your area.