Restaurant & Bar Ownership and its Optimization

Contact Neufeld Legal PC for restaurant/bar legal matters at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com

Ownership of a restaurant or a bar is an exceedingly challenging undertaking, made even more complex when there is more than one business owner, be it in the form of an active business partner, an investor or a financier. With these added layers of complexity, comes additional demands on the business, not the least of which is assuring the interests of all parties are appropriately protected, not the least of which assuring their continued contribution to the advancement of the restaurant or bar.

Business ownership arrangements are far too easily overlooked or set out in generic template agreements, when time and effort should be dedicated to the specific expectations of each of the individuals, so as to make the most out of the restaurant or bar business. Partnership agreements, unanimous shareholder agreements and financing agreements shouldn't be standardized legal documents, but instead should reflect the realities of the ownership situation and the contributions that each of the individuals is expected to make towards the objective success of the restaurant or bar business. Because as anyone involved in the restaurant and bar business can attest to, there is an enormous amount of work, effort and dedication that is required to making this particular business succeed, such that everyone involved needs to put in their required contribution and more, such that together all the hard work and effort of all the owners (contributors) pays off with the success that everyone is aspiring to achieve.

This is particularly important with franchised restaurants and quick-service restaurants (QSRs), as franchise agreements are particularly onerous with respect to ownership arrangements, such that appropriate controls need to be put in place early on (typically in the form of a unanimous shareholders agreement or partnership agreement) to ensure compliance with the franchise agreement, especially where there is a change in ownership, such that the restaurant franchise or QSR franchise does not violate the franchise agreement or is effectively held hostage by a partner or shareholder.

For knowledgeable and experienced legal representation in optimizing the ownership arrangements of restaurants and bars, with unanimous shareholder agreements, partnership agreements, joint venture agreements and other ownership/financing arrangements, contact business lawyer Christopher Neufeld at 403-400-4092 [Alberta], 905-616-8864 [Ontario] or Chris@NeufeldLegal.com.

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