Hi
I have been given the opportunity to use a space in a new building. Originally I was going to rent but after doing the numbers I couldn't do it so now the owner and I are looking at me doing the cakes and him paying me a salary the same as I get at the moment. Then after all the overheads are taken out I would get a profit share. Now this all seems to good to be true the only thing I can see in it for him is he gets to upset a local resturant that I do the occasional dessert function for.
But for me I get a salary and the opportunity to get my name out in the town. while I work on setting up my home based commercial kitchen.
So what I need help with, is there something I am missing. Also I have to draw up the paperwork so does anyone have any lease agreement template or any suggestions of things I need to but in to cover myself.

Any help would be appreciated Thanks

Couple of things here that I could see problems with.

if you have the customer that you do deserts for already as a customer I would make sure that you have it in your contract that you were already doing work for them and when you leave his store then they will follow you.

If you will be providing the recipes for the cake/icing and you leave to set up your own place make sure you can take the recipes with you. Make it part of your agreement that the recipes are your's not his.

If you are planning on having a home based business is he aware of this? If not he could get you later for starting your own business after working with him. Make sure there is NOT a non-compete clause in there and that the understanding is there that you will be opening your own business later.

Are you giving up benefits to work for this guy? Insurance?
Are you an employee or a contractor-who pays the payroll taxes.
If he considers you a contract employee (you work without his direction and supervision) You are responsible for taxes (quarterly) and he will just give you a 1099.

This is a virtual stranger, what happens if one of you is unsatisfied with your arrangement.

Will he take credit for your work?
Will he own original designs?

Thanks for the advice.
I kinda feel that my skills are the main attraction for him especially as there aren't any bakeries in town and no one does the pastries that I do. The building is also going to be a combination of drink store, restaurant and ice cream dessert area (my bit).
The main thing is i will be doing pretty much all my own work, keeping my recipes to myself so if I leave to set up my own business (which he does know I intend to do) i not sure how he would recreate my work as he knows nothing about baking.
i was going to put in the contract that my recipes are mine and any equipment that I bring to the deal will all be leaving with me.
I was also going to suggest if I do leave the building that I could supply him, that way he just needs to find counter staff.

JoAnnB great point not sure if I would be an employee or a contractor. I think employee as he would be paying for the ingredients. He wants a year commitment and I requested quartly meetings to discuss commission. He can try and take credit for my work but as he knows nothing about baking not sure what use it will be to him. But how would I safe guard myself from that???
Thanks guys I know the cc's would throw in some stuff that I haven't thought of.

if there will be other types of business there maybe you could put it in your contract that when you start your own business that you will still take orders through his place and offer pick ups to those customers at his location even maybe? But then he could still offer the cakes, you just get to do them at your own place.

Just another idea to think about.