New restaurant group job offer

[Diablo]

Hi everyone,
I'm trying to decide on a job offer for a new restaurant opening in san diego. It is a very nice base salary plus 7% of ownership. As a operating partner, the owner will also include a monthly bonus. My responsibilities will include everything that deals with the BOH. Menu, Menu costing, plating guides, speadsheets, recipes, inventory, etc.
I told him it sounded good and that I would be interested. No contract has been signed yet. If I do decide to go for it, and it being a brand new restaurant group, When should I expect to get paid. because I'm getting a "piece of the pie", am I supposed to wait till the restaurant opens to get paid even though I am going to have to start with the menu and etc. soon. OR should I just treat it like a regular job, and expect to be paid as soon as a contract is signed. Restaurnat is planned to open in about 6-9 months.
Any advice will be very useful.
Thanks.

[damack]

i dont know about you but i dont do any work for free.

if you sign a contract for x amout of dollars you shouldnt have to wait till it opends putting together a menu, getting all the ordering together. and you will probly be hireing staff too. talk to him but if he wants you to sign that contract now tell him you expect a paycheck evey 2 week ( or evey week depending on how your job dose it) ask him these questions befor you sign, because you working for nothing for 6 months is cazy, and you can go somewhere eles and make more. if he dosent want to pay you befor the resturant openes ask for a bigger slice of the corprit pie.

[KYHeirloomer]

There are several points you need to get straight with the owners:

1. When does your salary start. Normally, anytime there's a salary-plus deal, salary is paid as it would be to any other employee. That is to say, from the time you start work.

2. What, exactly, does your 7% equity position entail? Will you have proportionate responsibility for any liabilities? When, and how, will profits be distributed (and how will they be figured). Etc. You can't begin to guess the ramifications of this, and I would never consider signing without the advice of a good lawyer. But, just on the info you've supplied, I would look for 7% of the gross, rather than 7% ownership.

3. What, exactly, does he mean by "monthly bonus?" Will this be based on profitability? On gross sales? On your contribution to the bottom line (and, if so, how will that be determined)?

Seems to me there are more questions than answers available at the moment, and you need to get replies to them before joining that team.

[thetincook]

KYHierloomer has some really good points. A couple of things to add...

1) Is this a LLC, S Corp, or C Corp? This can affect many things. If its just a regular partnership or they want you to be a general partner, run for the hills.

2) You should want your base "salary" classified as a gauranteed payment. Make sure it its in the contract as a gauranteed payment.

3) Make sure all duties for each partner are spelled out in the Operating Agreement. The profit sharing arangement should be clearly written as well. You should also find out if partners are required to contribute extra capital at anypoint during the life of the business. Also get a copy of the financial statements each month.

4) Check out your partners. They may not have enough experience or capital to make a go for it. They may even be running a scam. You may find your self owning 7% of a gutted dump a few months from now. In one failed retaurant I worked at, the head owner sold 300% of the restaurant to investors, and took off with all the cash. Check the guys out with your vendors, see if their other restaurants have good credit.

5)Consult with a lawyer. This will save you a lot of time, money, and grief down the road.

6) Check if they have all the right permits and licenses.

[Diablo]

Hey, guys

Thanks a lot. You gave me some really sound advise