Selling your business to someone who wants to work in it first
It makes sense. They want to know what they're buying; you want a buyer who won't fail. The problem is the months in between.
Decide what they are during the trial
An employee, a contractor, or a part owner. Each has consequences:
Employee. Payroll, workers' comp, and wage rules apply. The cleanest option, and the most paperwork.
Contractor. Usually a poor fit. Someone working inside your business, under your direction, rarely qualifies.
Part owner. Selling a slice now and the rest later works, but they become a member with rights before the deal is done. See adding a partner to an LLC you started alone.
Put the deal in writing before the trial starts
At minimum: the price or how it will be set, the trial length, what ends it, what happens to anything they contribute, and confidentiality. Without that, a failed trial can turn into a dispute over whether they earned a share.
Seller financing between friends
Friends often buy on installments. Treat the note like a stranger's: written terms, interest, security in the business assets, and a plan for missed payments.
Franchises
If the business is a franchise, the franchisor usually must approve the buyer and the transfer, and may restrict who works in the business before approval. Read the franchise agreement before you promise anyone anything.
The final sale still has a structure
Asset sale or equity sale matters as much here as anywhere.
What to do
Write down the trial and the sale terms together, before the first day. A letter of intent can cover the outline; the purchase agreement comes later. Document review and revision covers both.
This is general information, not legal advice for your situation. If you want an answer for your business, book a consultation.
