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    3 Replies Latest reply on Jan 9, 2008 8:06 AM by LUCKIEST

    Negotiating Compensation

    WilsonLegacy Newbie

      I'm entering into a very unique opportunity and i'm not sure how to evaluate the opportunity in terms of compensation so i would like to know if any one has a suggestion for me. Here is the situation:

      A business partner and myself have been training at a retail food establishment. The establishment is a franchise that provides coffee, smoothies, food, and the like. The business employs 10-12 associates and will make anywhere from $350,00 to $1,000,000 in sales. We are training to assume complete managerial duties and operational tasks. we have not provided any start-up capital therefore our investment is purely time and experience. We each have associates degree's in business administration as well as a multitude of certificates in related feilds and 5+ years each in retail experience, which includes management. we are currently in the process of obtaining our bachelor's degrees as well.

      1) What type of compensation should we be asking for?

      2) What type of benefits and/or additional incentives should we be asking for?
        • Re: Negotiating Compensation
          Lighthouse24 Ranger
          I'd spot the salary range for managers in this type of business at around $31K - 55K per year depending on the company, the location, and your length of service. Paid vacation, medical, and profit sharing or stock options are Starbucks kinds of benefits -- nice if you can get them, but the majority of businesses like that would not offer all that. A 40-hour work week with no overtime is another SB deal, but a rarity for most retail or restaurant managers (especially ones with an ownership interest). Hopefully, this gives you something on which to base that aspect of your negotiations. Good luck.
          1 of 1 people found this helpful
          • Re: Negotiating Compensation
            mainstreetifs Wayfarer
            $350k-1mil is a broad range. Most businesses expect to pay around 10% of gross sales for management salaries so you can see why such a broad range would make that question hard to answer. FWIW- I have a client that owns a bunch of Jamba Juice stores in California and he pays his managers in the neighborhood of $42K + bonus' + benefits but it is not a 40 hour a week job, closer to 60.
            1 of 1 people found this helpful
            • Re: Negotiating Compensation
              LUCKIEST Guide
              You posted this question TWICE so
              It does sound like you are entering into a very unique opportunity. tell us more.
              You use the word "business partner" Are you partners?? or a Corporation??
              Do you have a Business and Marketing Plan. Included in the plan would be cash flow and that is where
              Compensation and Benefits should be addressed. Do you have an Accountant.
              Under Members you list Jumpin Juice & Java. If the cash flow and operating statements project
              great numbers you can increase Comp and Benefits.
              Good luck, LUCKIEST