Education Center

Partnerships and Joint Ventures

Partnerships and Joint Ventures are agreements among two or more parties to own and operate a business.

The advantages to expanding your business through partnerships include:

• The new partner provides the capital needed for expansion.
• The cost of setting a partnership is minimal when compared to the cost of franchising thus allowing businesses with limited expansion goals to grow without having to incur large costs.
• All partners share in the all the profits of the business.

The disadvantages of expanding through this method include:

• All partners share in the control and the decision making of the business regardless of experience and knowledge of the business.
• All partners share in the risk and losses of the business.
• Partnerships and joint ventures provide for limited expansion.