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Can I run a franchise in partnership with my wife?
You can have a partner in a franchise. The partner will have to be assessed by the franchisor in the same way that you will be in order to ascertain their suitability for the franchise. Often, a husband and wife will take a franchise as partners, but a partner could be a relative, friend or business contact. The franchisor will often require that the partners enter into a partnership agreement to regulate their relationship. A partnership agreement will deal with, amongst other things, the percentage share each partner holds in the business, how profits will be distributed (or losses) and what will happen if one of the partners wishes to leave the business. It would also deal with how management decisions would be made and how much time should be committed to the business by each party. It would be important to set out clearly if the remaining partner or partners would be able to purchase the outgoing partner’s share in the business and how that share would be valued.
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