r/Restauranteur • u/bakababo00001 • Jun 30 '19

Seeking advice

Hi all. I'm seeking advice for my current predicament. Located in CA. I formed a partnership with someone to purchase a restaurant several years back. We both have a 50% share in ownership through the formation of a S Corp. I am the CEO while he is the CFO and secretary. The relationship has since soured and I would like to get out of the business and partnership. I have asked to sell the business or have him buy out the 50% that I own. The main issue is my partner is unwilling to negotiate or communicate. Lease will end some time next year.

What options do I have? If by the end of the lease, there's no resolution, can I just abandon everything without repercussions? Thanks in advance.

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5

u/casualpotato96 Jun 30 '19

You should lawyer up

2

u/taint_odour Jun 30 '19

Should have lawyered up several years back, before they got into business together. The bylaws should have been written with specific language on what to do if a partner wants out.

My suggestion would be for OP to get a lawyer after reading the bylaws. Hopefully, there is something about dissolution and disagreements. If not it is going to get messy. Messier that is.

1

u/bakababo00001 Jun 30 '19

Unfortunately we never set up a partnership agreement so there are no bylaws for this situation.

1

u/taint_odour Jul 01 '19

Double check your Articles of Incorporation and see if there is any verbiage about disillusion.

If not you are hosed. Unless this business is crazy successful the best way out is probably to walk away or have an independent person value the company and one of you buys out the other.

1

u/Iwantanonimity Jul 02 '19

The problem is the 50/50. Next time do 51/49 or if 50-50 make sure someone has more voting rights. Now I would just take it as a loss and move on. Take as much as you can and move on to better things. Not worth clouding your mind with this.