# Partnership deal what do you think?



## Andy.m83 (Sep 8, 2006)

Hello All,

Question...I went into a clothing shop in a Westfields mall to wholesale my brand to this shop owner he stocks all the high end brands "diamond supply" "crooks" etc...now as we are talking he starts asking who is your designer?..I reply "I'm a graphic designer" then he asks who screen prints for you?..I reply "I've got a press..so I print my gear"....then he starts telling me...for a long time I've been wanting to start a label but haven't been able to find the right person...I have no design skills and I don't have screen printing equipment but you do...I have two shops in this mall and I know many small to big retail chains we can sell too...he want to go 50/50 in a partnership deal.

There's basically hardly no capitol to start this we go 50/50 on the blank apparel I design and print with him he says he'll give me a hand with the printing and he moves it out his two street wear shops....plus other boutiques he knows

Don't know weather to go 50/50 with him on my label and take it as far as I want to see it go or start a new one with him and also keep going with mine on the side....just in case the deal goes sour.

So in retrospect can a 50/50 deal work out with a designer/printer and a business man/store owner???

What do you think?


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## headfirst (Jun 29, 2011)

Andy.m83 said:


> Hello All,
> 
> Question...I went into a clothing shop in a Westfields mall to wholesale my brand to this shop owner he stocks all the high end brands "diamond supply" "crooks" etc...now as we are talking he starts asking who is your designer?..I reply "I'm a graphic designer" then he asks who screen prints for you?..I reply "I've got a press..so I print my gear"....then he starts telling me...for a long time I've been wanting to start a label but haven't been able to find the right person...I have no design skills and I don't have screen printing equipment but you do...I have two shops in this mall and I know many small to big retail chains we can sell too...he want to go 50/50 in a partnership deal.
> 
> ...


Expect the best but have a plan for the worst. 

So if he sells it you get 50%. If he doesn't sell it what are you out? How much printing are you going to have to do before you see sales?

How about sales through his locations? Are you seeing payment when he takes the stock or after he sells it? What about returns and unsold merchandise?


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## Andy.m83 (Sep 8, 2006)

headfirst said:


> Expect the best but have a plan for the worst.
> 
> So if he sells it you get 50%. If he doesn't sell it what are you out? How much printing are you going to have to do before you see sales?
> 
> How about sales through his locations? Are you seeing payment when he takes the stock or after he sells it? What about returns and unsold merchandise?


He wants to go into a legal partnership signed documents with our company name, taxfile numbers joined to our ABN (Australian Buisness Number) open a bank account but whatever sales we make for the first 3-6 months we don't touch any of the money but invest back into it.

I don't know if he can just push me out if it doesn't work out because it's a signed 50/50 deal.....so if anything I would have to buy him out or he sells his 50% stake....I think?


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## nphektor (Feb 13, 2015)

Hi,

Talk to a lawyer (if you can afford it) ... I'd say IMHO to ask him what he expects ... is you artwork at that point exclusive to the business or just the line(s) developed for the business? does he expect you to be wholly commited to the partnership or can you also develop and market your own separate product lines? but after you're satisfied with the terms, I'd say go for it!

Also ... we don't know your financial situation, are you secure enough financially, to work on this deal together? would you *NEED* to also work outside of the partnership to survive?

and one more thing ... make certain that EVERYTHING is in writing, down to the last details including an exit strategy.

GOOD LUCK!


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## headfirst (Jun 29, 2011)

I would discuss everything no matter how small and possibly include it in your partnership agreement.

How do you handle it if one of you wants out of the partnership? What if one of you dies or is injured?

What if the business just isn't that successful and you need to find a job? 

Make a big list and then start talking. The only stupid question is the one you didn't ask.


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## ModernTreasures (Jul 9, 2014)

If you come up with new designs for your company is he going to want part of that saying it should go through the partnership because you are now partners? And what is going to happen with your personal designs you are already making and selling?


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## MetroMan (Sep 7, 2014)

Hey,

Personally I think that you should for your security make the items and get 1/2 the sale item as soon as they hit the shop front.

Then when he sells that t-shirt he gets his 1/2 and everybody is a winner. This is a strong way of testing the partnership with little risk for yourself.

Once the partnership gets stronger, you can change that method.

One thing that you must remember, as the partnership evolves so does your contract. Keep revising the contract that is drawn up.


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## ShirtSquid (May 20, 2015)

This sounds very exciting. Sorry I don't have info to help on the matter but good luck and let us know what happens!


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## CarlT (May 23, 2007)

I would partner with him on a separate clothing label. 
In doing this, you retain rights to your shop and all that you do in that shop so that you can continue with your own designs and sale them to whomever you choose without him having his hand in the mix. (Unless of course you want to have a full partnership, which means everything (costs, expenses, etc.) are split down the middle.

It could be a good thing. If you want to do your own thing on the side, then you need to set that up as a separate entity. But remember if you set up full partnership you will have to have separate equipment as well. (Unless you do a sourcing thing, where the partnership designs and maintains your other label) There are a lot of ways you can go with it.
Get everything, even the smallest thing in writing. That is, talk out the details, write them down and both of you sign it. It is advisable to have a lawyer involved in every step of the process just to be safe. I don't know how well you know the man, but people are crazy, so make sure you have your bases covered in case of any event that might occur to disrupt that partnership. (Deaths, Acts of God, etc.)

Good luck!


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## Printor (Apr 16, 2015)

Andy, I feel like your bringing more than half to the table. Your graphics, Your skills and labor, Your Equipment and your buying half the startup garments. He is buying half the shirts and can only guarantee you guys will be in two retail stores. A few times a week, I get people talking about who they know, and how much biz. the can get me if I give them my first born child, and they are almost always full of it. I would Like to see some purchase orders from his pals, before signing any contract. Most of his value is what he claims to have in his rolodex. No purchase orders, I don't think he's worth more than 49%


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## Bonelafide (Aug 2, 2009)

I would caution you. For someone to come in out of no where and want to take 50% of your business, I think you should take some time to really get to know him and what his motives and visions are. Also weigh out what he is offering vs what you have already established and figure that out. 

Heck, Try countering his offer of 50/50 to something else. 50/50 in my mind would be a partnership of someone that was there with you from the beginning, or someone whose willing to put up all the capitol you need while you pump designs and print. definitely figure out what he's planning to bring to the table and just give it some time to think and plan over. Get to know him, having a business partner is like being in a romantic relationship in different ways lol.


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## veetwincowboy (Mar 14, 2015)

I'm with Printor on this, I do understand the desire that you have to get your designs out there
but it sounds like you are bringing more to the table than he is. Your designs, your labor, your overhead, his space and connections... Personally I would start a second business with the guy but at a 51/49 as it is you that essentially will be the producing partner. I would also make sure that he has absolutely no claim to your intellectual property or equipment. If this guy owns 2 stores he is probably a pretty bright guy but I would bet that he didn't make his money by being nice. I would also do a little bit of research on the guy just to make sure he hasn't trampled anyone on his way to the top.
Why am I so cautious about that sort of thing? Back in the early 90's when I graduated from design school in Phoenix I took a job as an artist at a company that was producing "Southwest" type tourist shirts. Every time we did a nice fresh design and it went in the stores it got knocked off pretty quickly.
At the time I had my own designs and ideas (unrelated) that had great appeal and a virtually untapped market, a partnership was struck with my boss and my designs were selling phenomenally right out of the gate, ASD/AMD trade shows were pulling in large orders from Japan, Korea, Israel and Germany. The company that I was working for was rolling in the dough... I was making a nice weekly wage BUT... the owner of that company screwed me out of my percentage and royalties and told my Wife and I that he had copyrighted my artwork and would sue me if I ever tried to produce it myself...( I still have the original artwork) Anyway, I was young, 4 kids and too broke to hire an attorney or I could have turned the tables on him. Lesson learned was hard and I am a lot wiser now. I am very cautious and protective of my work as a result of that experience, lol.... Didn't mean to hijack the op but just think about it, PROTECT YOURSELF!!!!


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## Printor (Apr 16, 2015)

Usually the 50/50 split is when one guys knows the biz. and is committing to most of the work and the other guy is putting up all/most of the $, or 2 experience people that are trusting each other to split everything from cleaning the shop floor to enjoying the profits. Owning a retail store doesn't mean he knows anything about establishing brand recognition or marketing. Make sure he's not able to use you, just so he can tell his buds he has his own label. I'm weary about the comment "I've wanted to start my own label for along time" The fact that he owns 2 hip retail stores, is in an ideal situation to do such a thing, and has never put any effort into it, gives me the impression he's not that motivated, like you obviously are. I admit the same guy would make my ears perk up! Don't want you to miss a good opportunity, just think you should research him and protect yourself. Will this guy commit to fulfilling$ unlimited purchase orders? Will he invest in Marketing? Say this blows up and you get $100,000 in orders, can he bankroll. If so, to me, that makes a big difference.


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## ApparelSourcing (Jul 24, 2015)

lots of discussion and lots of confusion. risk always be a part of any plan. simply play at the safe side . go for 50/50 partnership but in term of profit share not intern of ownership.


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## Justin Walker (Dec 6, 2006)

Go for 51%..... That last 1% could be the most expensive 1% of your life if you give it away..... I know this from experience. Lol


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## ericdata (Mar 25, 2008)

50/50 what exactly does that mean? 50/50 share profits and expense? 

Sent from my SAMSUNG-SM-G900A using T-Shirt Forums


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## ApparelSourcing (Jul 24, 2015)

the company shall be register as sole proprietorship with your name. but total profit shall be decided into two. simple.


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## Islandfever (Jan 10, 2012)

I just read this quote in another post, must be some truth in it. "the only ship that doesn't float is a partnership".


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