What are my rights if I’m a 50% owner in a local startup restaurant buy my partner has opened a second location with the same name and concept?

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What are my rights if I’m a 50% owner in a local startup restaurant buy my partner has opened a second location with the same name and concept?

My partner did so behind my back with a private investor. Do I have a legal claim in the restaurant or profits?

Asked on February 9, 2015 under Business Law, Mississippi

Answers:

Anne Brady / Law Office of Anne Brady

Answered 6 years ago | Contributor

The answer to your question whether you have a claim against your partner will totally depend on the terms of your contract and/or operating agreement with your partner.  If you did not reduce your arrangment to a writing, it will be much more difficult to enforce your oral agreement.  Did you have any conversations about going beyond more than one restaurant?  Did you trademark the restaurant logo?  The concept?  It seems unlikely you have a legal claim to a share of the second restaurant, but you may have a claim to some sort of royalty, depending on the answers to those questions.


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