How would you structure your business?

[jackeven]

Ok so I am in the process of purchasing a 6 unit F&B franchise. I have 16 years F&B experience and 6 years as a DM (3 years of being a DM for the brand I am purchasing) so I am very comfortable with the operations and day to day.

My question is how should I structure the business entities. My current thought process would be this.

I would a form a trust and install it as the owner/manager a management company. I would draw my payroll for myself and general overhead from this company.

A holdings company owned by the management company to own and control all the assets and equipment.

Now here is the tricky part should I create another subsidiary of said management kno y to own all 6 locations as a whole or should each location be a separate entity owned by the management company.?

 

[shadabir]

@jackeven No experience. But,

1. If you are sued for something in one of your locations would having a separate corporation per location contract the affected assets ?
2. If you have a underperforming location that you would like to file a bankruptcy for. Would having a separate corporation help?

 

[jackeven]

@shadabir No that’s the reason having the assets in a separate entity is beneficial and if I do have an underperforming location it’s simpler to declare bankruptcy without affecting any other locations.

 

[shadabir]

@jackeven Ok. I see.