Resource

9 common types of
restaurant partnerships.

Every meaningful partnership in hospitality tends to fall into one of nine buckets. Here's a plain-English guide to each one — and the structures owners and partners actually use to make them work.

Growth partner

An operator or executive who joins to scale a proven concept into more units, more markets, or a real brand.

Compensation is usually a mix of salary or draw plus meaningful upside in the equity or future stores they help build.

Equity for sweat

10–25% equity in NewCo (the holding entity for future units) earned over a 3–4 year vesting schedule tied to unit-open milestones.

Salary + carry

Modest base salary while building the playbook, plus 5–15% of profits on every new location they open.

Per-unit override

A per-store fee (e.g. $X per location at opening) plus an ongoing % of net profit on units they directly oversee.

Franchise development

A franchise developer or area developer who turns the concept into a packaged, sellable system.

Usually paid through a share of franchise fees and ongoing royalties, sometimes with territory rights of their own.

FDD + royalty share

Developer funds or co-funds the FDD build and takes 25–50% of initial franchise fees plus 1–2% of the 5–6% ongoing royalty.

Area developer

Exclusive rights to develop a region (e.g. 10 units across Texas in 5 years) at a discounted franchise fee, with sub-franchising rights.

Equity in the franchisor

10–30% equity in the franchising entity in exchange for building the system, sales pipeline, and operations support.

Equity partner

A partner who buys in with capital, expertise, or both and takes ownership in the existing business.

Straightforward ownership structures, typically alongside a clear shareholder or operating agreement.

Cash for equity

Partner invests $250K–$1M for 20–40% of the operating LLC at an agreed valuation, with pro-rata rights on future raises.

Sweat equity

Partner takes a below-market role for 12–24 months and vests into 10–20% equity tied to performance milestones.

Buy-in to multi-unit hold-co

Partner buys into a holding company that owns multiple stores; distributions are paid quarterly from blended cash flow.

Silent / investor partner

Capital without the day-to-day. They want a return; the operator keeps control.

Usually structured as preferred equity, revenue share, or a straight loan with upside.

Preferred equity

Investor receives an 8–10% preferred return paid first from cash flow, then splits remaining profits 50/50 until they hit a 2x cap.

Revenue-based financing

Investor funds $100K–$500K in exchange for 3–6% of monthly top-line revenue until they receive a 1.5–2x return.

Convertible note

Loan at 6–8% interest that converts to equity at a 20% discount on the next priced round or a sale event.

Operator partnership

A hands-on GM, multi-unit operator, or chef-partner who runs the business day-to-day.

The classic operator deal — base compensation plus a real piece of the unit they run.

Operating partner GM

$70–110K base, plus 10–20% of store-level EBITDA, with a path to 5–10% equity earned over 3–5 years.

Chef-partner

Salary plus 10–25% equity in the restaurant entity, with creative control over menu and culinary direction.

Multi-unit operating partner

Salary plus a profit share across the locations they oversee, scaling as units are added.

Marketing partner

A brand, content, or growth marketer who treats the restaurant like a brand to build, not an account to bill.

Compensation often blends a reduced retainer with performance-based upside.

Retainer + performance

$2–5K monthly retainer plus 5–10% of incremental revenue above a baseline, measured quarterly.

Equity-light

Reduced cash fee plus 1–5% equity vesting over 2–3 years.

Channel-specific revenue share

Catering, events, or e-commerce channels they build from zero pay them 10–20% of net revenue from that channel.

Owner-to-owner partnership

Another restaurant owner who brings a complementary concept, a second location, or shared infrastructure.

Often informal at first, but the best ones get papered: shared services, joint ventures, or cross-equity.

Shared commissary / kitchen

Two operators jointly fund a production kitchen and split costs and capacity, often through a separate LLC owned 50/50.

Co-branded or dual-concept location

Two concepts share one footprint; revenue and expenses split by an agreed allocation, usually proportional to sales.

Cross-equity swap

Each owner takes a small (5–15%) equity stake in the other's business to align incentives long-term.

Strategic advisor

A senior industry voice — former operator, investor, or executive — who opens doors and shapes strategy.

Light-touch, high-leverage. Compensation reflects access and judgment, not hours.

Advisor equity grant

0.25–1% equity vesting over 2 years for monthly strategy calls, intros, and reviews of major decisions.

Cash retainer

$1–3K per month for a defined scope (board prep, intros, deal review).

Success fee

A percentage (1–3%) of a defined outcome — capital raised, franchise deal closed, or exit.

Fractional CFO / C-suite

A senior finance, ops, or marketing executive who plugs in part-time at a leadership level.

You get the experience without the full-time salary, often with a path to deeper involvement if it works.

Fractional CFO retainer

$3–8K per month for 1–2 days per week of CFO work — financial reporting, forecasting, lender and investor relations.

Fractional + equity

Reduced cash retainer plus 1–3% equity vesting over 2–4 years.

Project-to-permanent

Defined project (raise, system build-out, restructure) at a fixed fee, with a pre-agreed transition into a longer-term role.

A note on the list

These are the most common — not the only ones.

Real partnerships are built around real people. The structures above show up again and again because they work, but every deal we've seen has its own wrinkle — hybrid comp, custom vesting, joint ventures, family arrangements, management companies, royalty stacks, earn-outs. If your situation doesn't fit neatly into one bucket, that's normal. The right partner will help you shape the structure around the goal, not the other way around.

Wingman doesn't provide legal, tax, or financial advice. Always paper your deal with a qualified attorney and CPA who knows hospitality.

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9 common types ofrestaurant partnerships.