I have the opportunity to use a restaurant/commercial kitchen to bake my cakes and supply them to the restaurant.  I'll be working as a supplier in essence.  I'm making up some price sheets,  as to how I sell them my cakes/pies for,  taking into account that I will be using their facilities, their electricity.  I'll be using my own supplies, equipment, etc.   They will also be supplying me with a dedicating fridge/freezer for my use, and I'll be sharing some double ovens for baking.   Anyone have any advice, pitfalls I need to look out for?  I've had another business for over 40 years and am pretty conversant with figuring out underlying costs.  However, this is a new venture for me.   Before I commit completely to the venture, I'm trying to figure out as many details as I can.  I'll also ask them to sign an agreement, as to either a minimum/maximum they'll charge me for electricity, use of facility, etc. 

Thanks in advance. 

Sid

#1 keep it happy and pleasant 

i think I would pay them rent in the form of a flat commission/percentage  on all the work that I do there including when I supply them with baked goods — as well as to cover for utilities, workspace, etc. —  what better way to quantify it — will their peeps take orders for you? that raises the percentage —

as well as give them a percentage off my wares that they buy — i would give them a regular accounting and a check — 

also you need to be specific and upfront about how they place their orders — like have one or two times a week when you bake for them — if they need something outside of that— they get the rush fee just like all other customers — but still give them their percentage off — 

don’t base anything on their sales of your goods — they may decide to sell your stuff that is past it’s prime — not your problem — so put use by dates on there— the rest is up to them — complaints on your stuff that they sell go to their manager you’re not there to be their customer service —

and you both write checks — I would not subtract amounts due from amounts owing — you need a succinct paper trail —

i mean are you going to do your own dishes and sweep the floor, disinfect the counters — what if a new person uses some of your supplies for the restaurant— or what if regular employees do? this kind of sharing can be real tricky — hope you are a real good people person —

hope it all works out great for you 

if you can be in there when they are not -- that's the best -- somehow I got the feeling you would be in there when they were and that's much trickier -- when you said sharing the ovens -- but I hope it works out great