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Heaton
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That was very helpful “My Guy”.

Initially the firm “A” which is a franchise lawyer + business broker layout the deal on the table and I got lawyer “B” to run through the contracts.

FIRM “A” benchmark them self against DcStrategies (big firm).


The deal is legal work/franchising strategy
Valued at $95k – 45%

Me $42k – 55% This will cover some of the strategy work but the bulk of the funds will go to stage 1 – infrastructure (IT/POS/WEB)

This deal DOES NOT includes the takings of my current 3 stores. We are setting up a system which revolved around the same framework that I currently got.

The current 3 stores will be greenfield sites which may or may not be taken over after the system is completed.

The dilemma I am having now is lawyer “B” suggested that I can get a better deal else where and keep more equity to myself. Basically Mr “B” wants a piece the pie too. He will offer the legal side and outsource the franchising strategy work to another party, which will still be cheaper than firm “A”.

However I feel firm “A” is much stronger than option “B” in terms of everything. It so hard for me to make a judgement when both side try to outshine each other.

At this stage a few things I have in mind.

1. Franchise now instead of waiting 2-3 years before I can make it take off myself. It could be too late by then.

2. Option “A” if we exceed the budget then my partners will adsorb 45% of the cost. Plus when a partner own 45% of something I believed they will put more effort into this venture.

3. Option “B” quality of work might not be the greatest. However I get to keep most of the equity. Again, if it doesn’t work out well all the risks will be on me.

Not everyday I get to come across these opportunities so I don’t want to blow it by negotiation too much or selling myself short.

Its like asking someone.. Will you take 3millions in the next 3 years or 15millions in the next 15 years? what would you choose? :D