A partnership based on one partner making a larger financial contribution and the other partner promising to make up the difference in sweat equity may seem reasonable in theory, but can be difficult to quantify and describe in a partnership agreement By continuing to ask questions in my conversations with the partner who asked me for advice, I discovered that not only did they not have a shareholder/partnership agreement; they did not have a written business plan before a pharmacy was established. Here are some elements that contain a pharmacy partnership agreement: For more information on forming a pharmacy partnership between existing pharmacies or on buying a pharmacy for sale in Ontario, please call us at 416-512-7400 or make an appointment with our pharmacy lawyers. Individual responsibility of each partner One of the most important issues to consider when joining a new partner is that, as part of a partnership agreement, each partner has unlimited liability in the partnership. If Gough Alixa decides to pursue this sale after evaluation, there are a number of possible strategies it can try (through a duly developed partnership agreement or separate legal documentation with Col Gate) to ensure that Gough Alixa`s interests are best protected. • Are they willing to accept a written partnership agreement outlining all critical aspects of the business? • The Partnership Agreement may offer a certain degree of flexibility with regard to the distribution of income between the partners. You may think that a prior friendship with your partner or partners is enough to have a foundation for a strong working relationship, but in my experience, this is rarely the case. Typically, friendly partnerships work for a short period of time; However, in the event of problems with the distribution of expenses and profits, or when the company has grown to a considerable size, the emergence of disputes is guaranteed. Case study To illustrate this, we look at the case of Gough Alixa, an experienced 50-year-old individual pharmacist, who has no debt against his regional pharmacy business. Gough Alixa tries to facilitate her working hours and decides to sell a third of the business to her assistant pharmacist Col Gate, 28, who has been working in the store for 2 years.
How do you allocate responsibility for decision-making? During a working day, an independent pharmacy owner has to make hundreds of decisions. You should discuss the different types of decisions, such as.B. operation, staff, finances, customer service, etc., a pharmacy owner must make and define decision procedures for the day-to-day operation of pharmacies. There is no standardized guide to success. In one case, you can request a unanimous vote from all partners. In other cases, you may decide that the partner facing the decision can do it themselves due to the circumstances and cost (small fees). Your partnership/shareholder agreement should describe what is considered an important or minor decision. For every pharmacist in Gough Alixa shoes, it is best to discuss these strategies (and their relative pros and cons) with legal counsel with extensive experience in pharmacy transactions, especially those related to the interests of the partnership and the associated financial security documentation. If you want to enter into commercial partnerships with other Canadian pharmacies, it is important that you enter into a strong pharmacy partnership agreement. In essence, a partnership agreement is a legal document that you and your partners sign to consolidate the responsibilities, expectations, benefits, and restrictions of each party. .
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