How To Share Costs & Profits - Industry Norms?
I have partnered with a family member. We should be fully set up for a small 16 light indoor grow within a week. We will triple that size in Dec as we have the conditioned space, as long as the grower can handle the small grow first). My question is - profit split between investor (me) and grower (partner).
To get things started, I funded the full set up of the facility, paid for all plants, nutrients, electricity, etc. My partner is 100% responsible for managing the day to day operation and selling product. I want to be fair to both of us. His suggested split is - me 60%-him 40% (after operation until all setup costs are recovered; then me 40%-him 60% with him covering all operational costs. This seems a bit over generous towards him, especially as I take all of the financial risk.
I'd prefer to get my initial investment ($100k) back sooner. I'd like to know what is the norm in the industry for recoup of initial investment, allocation of costs and profit share?