Meet Zack; he studied at CPUT for a diploma in Business Management. He met George in one of his classes. Zack has a passion for food. So, when Zack received his qualification, he started his own catering company as his big love is cooking. He is considering studying to become a Chef in future.
A few years later, Zack bumped into George at the local Supermarket and grabbed a coffee to catch up. George told Zack that he now owns a small hotel, and he would like to expand his restaurant and function area, but he does not have the recourses to fund the expansion. After the coffee, Zack went home and thought about the development for a long time. Then, later that night, he reached out to George and asked him if they could speak again about a possible collaboration.
After that, they decided that each of them already has a business and therefore collaborating corporate partners could save a lot of administration and costs. So they concluded a joint venture agreement. They took the legal advice and had the papers drawn up. The business did exceptionally well, but sadly, George’s mom, who lives in Australia, fell ill in their third year of business together. George decided to move to Australia to take care of her. Zack and George agreed to end the Joint Venture Agreement, and because they worked so well together, he invested in George’s business by merging his into the same entity. The company continued even with George on the other side of the world, and today has grown into one of the largest boutique hotel groups in South Africa. Zack became a chef and is now in charge of all the menus across the group.
Even with the Covid Pandemic, Zack’s catering experience ensured that the restaurants catered for large functions and stayed in business. Likewise, their hotels became rooms for people visiting loved ones who were ill or had to travel for business.
Thanks to the proper legal advice, Zack and George and all their employees are well cared for. Join our upcoming webinar on Joint Venture (“JV”) Agreements or download your JV agreement from Conhtracts4Biz today!