Partnership Agreements for Motels
Partnerships have become a very common occurrence, particularly in larger motels.
These styles of structures are all built around the needs of the individual investors and the documentation of the agreed arrangements depends on the nature of the proposed structure. Partnerships can be entered into between separate entities but you can also have partnerships (in effect) through shareholding in a company and unit holding in a unit trust. They can also have an agent company represent the partnership interests.
What is critical is working through the ‘what-if’ scenarios now. It is no good trying to negotiate with partners when disputes have arisen. Any partnership arrangement needs to cover all of the contingencies it can and deal with what happens if things don’t work out.
We know that:
- Our partnership agreement covers every eventuality that needs covering in a partnership agreement;
- We can advise partners about how issues will arise between them;
- If things do take a turn for the worse, we can help mediate, and solve disputes.
Our partnership experience is second to none.
Entering into a partnership is not without risks, in terms of additional people to deal with, but it has rewards in terms of diversification and the ability to leverage into a bigger motel businesses. These are the factors that need to be balanced by each investor.
An example of an article where we talk about this issue can be found by clicking on the link below: