Brand name/business name ownership help

50/50 is what it is, and will be 50% of all business activities.

If she wants to run separate events outside of the joint business, then run it as a separate entity, such as a sole trader. Why not do that under the brand that she wants to keep for herself, and have a separate name for the joint business.

As the partner though, I would be worried about the other partner who is already planning an exit and wants to pursue other revenue streams, but not share in any profits. Not the best start to a business relationship.

Is opening a restaurant in a 50/50 partnership the best way forward? If it is just about capital, there are plenty of options to raise funds, and she can invite investors, but maintain a majority of the business equity and trade however she pleases.

I would personally never run a business at 50/50 as I've seen first hand as to what it can do .. I suppose she could add a clause into a contract stating this fact that if she leaves she takes the name with her  

Thanks for the responses. I was a bit lazy in my explanation. Not sure if I should edit the original post but its actually 51%/49% (majority to her).

The business partner is providing the building, where he already has a bar running. He would like to provide food. She is a caterer.

She is to invoice the bar for all her services, he gets 49% of the profits.

She has already been establishing her brand so would like to market it as "*Her Brand* @ *His Bar*"

Her business partner in this venture is well aware that she has other plans separate to him; they are good friends.

My question is how would she go about this?

It still sounds like a recipe (see what I did there?) for disaster.

As Andy said, 50/50 is dangerous. I know you are saying 51/49, but in real terms, it means no real control, anything under 75% means everything has to be agreed on and if there is a difference of opinion in the future (eg business grows and the catering outgrows the building), then it can cause bad blood. The best of friendships will be tested to the extreme when it comes to business.

It sounds like the bar owner is getting a steal. Providing building space for a building he already occupies, providing catering for a business he is already running.

Renting office, building space is just normal business overhead and not worth giving away half your equity, particularly if you diversify and outgrow it in the future.

Providing catering to a bar is just a contract? Why not do it on that basis? Then she is free to pursue any business interests as she see fits.

I'm sure there is a to more to it, but on the information you have given, it makes no sense to give away half of your business and control.

Giving equity away at the beginning of a business journey may not seem such a big deal, but you try and buy it back 5, 10, 15 years later. Or imagine if you need to release some equity to bring in a business partner as the business expands. Then all decisions will be vote by committee with no one in charge.

Tell her to hold on the equity. If she is friends with the bar and business owner, then do a great deal, pay for rent and sort out a proper contract to supply food. Everyone wins and life is less complicated  IMHO.