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Partnership on Resto bar gone wrong PLEASE HELP

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boco2009


Arresto Menor
Hello all,

I have a resto bar for 1 and half year and over all expenses ko sa pag papatayo noon was almost 300k including everything, but the bar was really not that strong when it comes on profit...kaya mejo na dedelay yung payments ko sa rent nung bar and electric/water bill. So I decided to have partner that can help me to survive the bar. So i ask a friend to help me out. My friend agreed and we signed a letter that my friend invested 50k for equal rights on the bar and I know we should share profit and cost aswell. I explained to my friend na yung 20k is ma pupunta dun sa prev 2 mon rent and bar and other expenses sa bar. Ako yung nang mamanage nung bar nag cocook, entertain ng customer and nag seserve. Yung friend ko is once a week lang pumunta and mag checheck lang siya ng records and have a little drink. But the partnership fail for some reason and lugi yung business so my friend decided to back out. I agree na mag back out na lang siya because di na kami nag kakaintindihan. But I still decided to continue the resto bar on my own

Question ko lang po kasi nag file siya ng case na kailangan ko daw ibalik yung pera niya and moral damages worth 100k.
Ano po ba ang gagawin ko? Pinalalabas din po ng friend ko na niloko ko siya at san napunta yung pera.
My records po sa bar and hindi ko po itinatago yun na checheck niya po yung records ng sales and out everytime na pumupunta siya dun.
And this case is really affecting me dahil pinopost niya din po sa facebook eventhough walang pangalan ko pero alam naman lahat ng tao na ako yung naging partner niya.
Do i really need to gave back the money kahit lugi yung business? and kaya ko lang naman naituloy yung business nung nag back out na siya is dahil nag business loan ako.

PLease help me Sad

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centro


Reclusion Perpetua
From a business perspective, you are at a disadvantage. P300K investment for 100% rights and 100% share on profit or loss. You own the business and operate it.
You gave that away for a P50K capitalization to gain 50% share on rights and 50% on profit. He partially owns the business but does not operate it. It is not clear if he should share in the losses. He is at an advantage.
This favorable deal with a partner was given because of friendship and need for capitalization.
For transparency, sharing a business means professional documentation of financials that meet audit and tax regulatory standards. My understanding is, there is none yet.

For now, you may still be at a loss or recovering or still in a learning curve.

From a practical perspective, can you still find the time to add to the stress of running an operation with a court case? Unless the case can generate for you additional capitalization at the shortest time at a time you need it should you win the case.
My view, talk it out. Partnering in a business has a financial risk which he should share. Agree on a minimal compensation so this untimely stress is out of the way so you can focus on recovering your investment.

You may want to solicit legal advice on how tedious and expensive the legal procedure is.

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Lunkan


Reclusion Perpetua
"Do i really need to gave back the money kahit lugi yung business?"
What does your contract say?

" I know we should share profit and cost aswell"
Well. It CAN be the fair, BUT you can't just asume that. Such are normaly told in the contract...
You handle the business. If the other partner do the handling, I wouldn't agree to pay half of the losses Smile (except if it depend of things out of the partner's control as for instance an UNEXPECTED flood.)

"I have a resto bar for 1 and half year and over all expenses ko sa pag papatayo noon was almost 300k including everything, but the bar was really not that strong when it comes on profit."
An other question is if you did misslead him, when you made him become partner and invest money. Perhaps he see it as a criminal scam...
because why would he have invested if you had told the truth? Smile

--
Btw - Why are you continuing when the business have that bad result??? Smile
centro wrote:From a business perspective, you are at a disadvantage. P300K investment for 100% rights and 100% share on profit or loss. You own the business and operate it.
You gave that away for a P50K capitalization to gain 50% share on rights and 50% on profit. He partially owns the business but does not operate it. It is not clear if he should share in the losses. He is at an advantage
Well. If the "junk" value (=selling out the equipment and such if quiting) is less than 100k and the business lose money, then the partner's half is worth LESS than what he paid...

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boco2009


Arresto Menor
Thank you po centro.

Regarding sa court case eh I really need to answer the case kasi once hindi po ako mag reply I will be forced to pay everything including attorney fee niya. Concern na lang po ako dun if I really need to give back the money to my friend . Unfair naman kasi sakin ako pa yung kinasuhan. Sa business naman napunta yung pera and my friend know that aswell and we have records. Then yung napansin niya na hindi kumita then suddenly mag baback out siya and he wants everything to be returned

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boco2009


Arresto Menor
"Do i really need to gave back the money kahit lugi yung business?"
What does your contract say?
Actually it was not indicated in the contract. Its just a piece of paper we signed together that he invested 50k for equal rights

" I know we should share profit and cost aswell"
Well. It CAN be the fair, BUT you can't just asume that. Such are normaly told in the contract...
You handle the business. If the other partner do the handling, I wouldn't agree to pay half of the losses Smile (except if it depend of things out of the partner's control as for instance an UNEXPECTED flood.)

"I have a resto bar for 1 and half year and over all expenses ko sa pag papatayo noon was almost 300k including everything, but the bar was really not that strong when it comes on profit."
An other question is if you did misslead him, when you made him become partner and invest money. Perhaps he see it as a criminal scam...
because why would he have invested if you had told the truth? Smile

I did not mislead him. I told him everything he needs to know including yung frequency ng customer. Kung san mapupunta yung pera niya and we have records that he can check everytime he's there.

--
Btw - Why are you continuing when the business have that bad result??? Smile
I know i should closed it down but this is the only thing I have left. Dito lang ako kumukuha ng money for my everyday expensses

Salamat po sa mga advice

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centro


Reclusion Perpetua
boco2009 wrote:Thank you po centro.

Regarding sa court case eh I really need to answer the case kasi once hindi po ako mag reply I will be forced to pay everything including attorney fee niya. Concern na lang po ako dun if I really need to give back the money to my friend . Unfair naman kasi sakin ako pa yung kinasuhan. Sa business naman napunta yung pera and my friend know that aswell and we have records. Then yung napansin niya na hindi kumita then suddenly mag baback out siya and he wants everything to be returned

Attempt to complete the picture.
What are the charges? Written in a demand letter? Filed in small claims court? Barangay? Other courts?
What are the timelines? When business was started? When friend partnered? When you separated? When charges made?
Other than rights and share, what else are the expectations? When is the return of investment expected?
What is the position of your lawyer if any?



Last edited by centro on Thu Apr 07, 2016 11:20 pm; edited 1 time in total

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Lunkan


Reclusion Perpetua
"I did not mislead him. I told him everything he needs to know including yung frequency ng customer. Kung san mapupunta yung pera niya and we have records that he can check everytime he's there. "
Do you mean you did yell him BEFORE he agreed, the result had been very bad before he invested too?
If so - how come he agreed??? Smile

"I know i should closed it down but this is the only thing I have left. Dito lang ako kumukuha ng money for my everyday expensses"
??? But you talked about LOSSES you expect your partner to pay half of. How can it be BOTH
business loss
and money from your BUSINESS to your PRIVATE costs???... Smile

It's POSSIBLE IF you two AGREED you will get salary for your handling of the business, but that's uncommon when a business have bad result.

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animeron


Arresto Menor
hello po...good day. Gusto ko lang po magconsult. Nagput up ako ng resto...general partnership sya and I and my partner agree na ipapangalan ang resto sa sister nya at sister ko. Ako din gumawa ng partnership agreement na pinadala ko sa kanya. Tapos in order to register it sa SEC need siempre ipanotarize ang agreement. Now this is the issue, I discover few days ago na pinalitan nya ang name ng sister nya into his name...by erasing it using liquid paper corrector. I suspect na binura nya yun after nyang mapa notarized kasi I don't think so na papayag ang notary public na magnotarize ng document na may erasure. So, ang question ko po valid ba ang document na yun? Kasi kung hindi balak ko kasi magdemanda kasi medyo masama ugali nya...until now wala syang binibigay na pera sa akin as her capital share sa resto puro pero ko ang nagpapatakbo sa resto tapos gusto nya sya lang nasusunod sa resto at ang gusto pa nya sa kita ng resto kukunin ang pangbayad nya sa capital nya...eh parang niloloko nya ako kasi pera ko naman lahat ang ginamit sa resto. Need your kind advise po paano gagawin ko.

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Lunkan


Reclusion Perpetua
animeron wrote: Now this is the issue, I discover few days ago na pinalitan nya ang name ng sister nya into his name...by erasing it using liquid paper corrector.  I suspect na binura nya yun after nyang mapa notarized kasi I don't think so na papayag ang notary public na magnotarize ng document na may erasure.  So, ang question ko po valid ba ang document na yun?
That's fraud and falsification (or what it's called in Philippine law).
What does he say when you tell him about geting paid and he risk to go to jail?
Does he handle the business bad too?
It seem you and the corect business signer sister better hurry and take the control from the scamer kicking him out...

Making a case IF it's needed.

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animeron


Arresto Menor
hi...thanks for the advise. Actually, she's very bad in handling the business. We started operating last 22 March and we are starting to built a good customer base....however, now pinababawasan nya sa chef and mga ingredients and serving ng food namin...para lumaki ang kita at magkaroon ng sobrang pera para may makuha sya monthly.... pero the effect is not good. Some of our customer already noticed that the quality of our food is deteriorating... Di ako makacomplain sa kanya kasi nasa abroad ako...pero yung sister ko kung saan ko pinangalan ang business sya ang nasa resto but inoover power nya ang sister ko. Pinagbawalan nga nya hawakan ang cash box eh...tapos parang ginagawa nya crew or utusan sa resto despite the fact na lawful partner ako sa resto and lahat ng nagastos sa resto until now ay puro sa akin galing...kc di pa din sya nagbabayad ng kayang share sa capital.

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animeron


Arresto Menor
Tapos sa partnership agreement po namin sa SEC....nakalagay doon dapat may initial capital kami ng tig 100K...but still di po sya nagbigay noon...ako lang din po ang naglabas ng money. Kapag ganon po ba valid pa din ang aming partnership agreement + plus nagkaroon pa ng erasure sa name.... di ko lang po alam bakit tinanggap ng SEC yung agreement na may erasure...baka naglagay po sya....

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