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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have recently set up a dog grooming shop with a friend, I

Resolved Question:

Hi I have recently set up a dog grooming shop with a friend, I have put in the initial outlay of just under one thousand pounds for the initial rent, all the equipment is mine bar her personal scissors and a few accessories, the rest of the initial rent and bond was obtained together by doing some dog grooming from my home garage set up,
90% of the customers are my own customers from working from home and the other 10% are hers from a previous shop she owned,
she is now messing me around saying she doesn't want a joint bank account as it will interfere with her benefits ( shes claiming universal credits and also recently new enterprise allowance to help set up the shop,)
the thing is shes been taking a wage where we initially agreed we would not until the shop could afford it,
where do i stand if i ask her to leave and carry on alone?
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.

Hello my name is ***** ***** I will help you with this.

Do you have any form of written agreement please?
Alex

Customer: replied 1 year ago.
No we dont have any written agreement
Expert:  Ash replied 1 year ago.

Are you a Ltd company or partnership?

Customer: replied 1 year ago.
we were agreeing to set up as a partnership but shes now decided she doesnt want that, she wants us to split the takings down the middle and then both chip in half of any bills, ive said that wont work as i need to set up internet banking and direct debits for utilities
Expert:  Ash replied 1 year ago.

Is there anything in writing to say its NOT 50/50?

Customer: replied 1 year ago.
nothing in writing, i have proof of anything i have already paid out as its gone through the bank
Expert:  Ash replied 1 year ago.

Ok - then in law unless anything is in writing its 50/50,

That means you can buy your partner out or split the assets.

Ideally you would have had a contractual partnership agreement that sets out rights, responsibilities, what happens if there is a dispute and how the partnership is ended.

As you dont in law its 50/50 or you can buy them out.

Can I clarify anything for you about this today please?
Alex

Customer: replied 1 year ago.
in effect she now owns half of the assets like the equipment?
and is entitled to half of any takings even though i am the one who has paid out?
Expert:  Ash replied 1 year ago.

If you have evidence and receipts, you are entitled to reimbursement of those items or the kit etc.

But you really should have had an agreement draw up, because in events like this it helps.

Does that clarify? Alex

Customer: replied 1 year ago.
well i want to cary on the business on my own as most of the customers are mine anyway, can i just ask her to leave?
Expert:  Ash replied 1 year ago.

Ok - yes you can do that and buy her out.

Does that clarify? Alex

Customer: replied 1 year ago.
how do we work out a price though
Expert:  Ash replied 1 year ago.

You get an accountant to value the business. Alex

Customer: replied 1 year ago.
ok thank you
Expert:  Ash replied 1 year ago.

If I could invite you to rate my answer before you go today please, otherwise the site does not credit me for the time spent with you today. Thanks and good luck. Alex

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