Questions & Answers
Protecting your interests while taking a business on lease
Hi
I am taking a cafeteria for 2 years on lease. The license will be for the owner but I will run and take care of everything for 2 years including profit, salaries...etc.
So how will I make the agreement?
1. Shall I go to the court for making the agreement?
2. Shall both of us make an agreement on cafeteria letterhead and sign and stamp? Will this be enough as a proof of lease?
3. Is a power of attorney from the owner to my name needed for running the cafeteria?
Dear Sir,
Thank you for getting in touch with me on this.
Firstly, congratulations on your business venture.
As I understand from your query, you wish to enter into a memorandum of understanding/agreement with an owner of a cafeteria with regard to the cafeteria business.
You will need to enter into a simple agreement with the owner (without the need to go to court or notarize the agreement).
The said agreement will capture all the details about the business like relation, profits, bank account access, tenure, dispute resolution...etc.
The Agreement needs not be on the cafeteria letterhead but it is better if you have this.
A Power of Attorney is not needed as the Agreement will suffice and give you the power to run the business.
You can get in touch with me on 052-9495731 or email on hari.wadhwana@gmail.com for further discussion and assistance.
Good luck!
Regards,
Hari Wadhwana
Dear Sir,
If you wish to run a company without your name, then the owner can any time ask you to leave the company.
The power of attorney is an option but that can be also cancelled any time.
Make an agreement to secure your investment in a future dispute.
I will suggest adding your name to the license. I will not recommend you to start a business without your name in the license.
Thanks
Regards,
Imran Khan
Mobile: 0557409575
