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[QUOTE="Tero, post: 7070440, member: 415793"]
Thank you for such a lenghtly reply.

Not exactly franchising but close. In franchising you have to pay your initial investment + fees along the way. They may even dictate in their contract that you can buy supplies only from certain vendors which they (may or may not) control also. So you might end up paying more ways than one.

If you really think of it what your friend suggested is not that different. True, you do not make any monetary investments, and the risk is on your friend. But in the long term this changes.  Eventually this business should turn profitable so it can maintain itself through its own cashflow. Otherwise there would be no point to continue.
So when that day comes (more money is coming in than going out) your agreement looks more like a franchise. The amount of work your friend has to put in is probably smaller than it was in the beginning. However, you work the same amount. So you are paying with your work and get half of the profits. The other half is more or less passive income to your friend.

The terms that I've seen so far have minimum contract length which could be 12-18 months. If a player is profitable from the start they do skim money of him long enough.
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