I acted on good faith in a family business, now i'm a trope.

My brother and dad were working together to start a brewery for my brother. They had been doing homebrew stuff for years and were looking for a location for a brewery. They had got a loan secured and found a location. I was working as a tech consultant and was going to start my own consultancy. I was offered the opportunity to start my own food truck and restaurant at the brewery if I wanted and I could just pay utilities and such. I decided to go this route and moved forward with planning everything out.

I paid for everything out of my own pocket. I found a truck and the owner financed it for me. I created branding, recipes, processes, sop, etc. So, at the point they had bought the property because they secured a special permit from the city council was backtracked by the city attorney. Now the brewery was going to be forced to become a restaurant and sell over 50% food to alcohol.

I was told by my dad to work it out with my brother. We agreed that we still wanted to move forward and I would become an owner of the brewery. The brewery then absorbed all of my assets. We agreed to go forward that night and every time I asked for clarity about ownership I was told to "let it go" by my dad and my brother refused to talk. This has happened since 2020 consistently.

The business now meets the same guidelines as any other restaurant in the city.

I made an agreement in 2021 with my dad about how I would get 5% of the business per year as long as the food part met the food quota. I was given my first 5% after the first year. My brother contested it. I ended up leaving the brewery one day to never come back when they both denied knowing anything about a deal to give me ownership.

My dad changed my 5% to 3.5% without my permission and told me one day with vague business stuff that made something easier for him. It didn't make much sense. I don't like that my percentage is getting switched around. I don't even have a fair amount of percentage already. He has written out his will and is going to give me a promissory note. This gives me 15% before inheritance gives me about another 12%.

I know all of this is a mess, but I need some advice on how to go forward. Do I just take my piece and be okay with it? I've never had the chance to negotiate my own business being absorbed. Should I get the brewery to hire a 3rd party non-biased attorney to consult on this and make a judgement? or is my 15% enough?

This is what chatgpt says about my contributions

Estimated value of contributions

  • Buildout (truck + kitchen + systems): $25k–$75k
  • Branding (truck + brewery + business identity): $15k–$60k
  • Recipes / menu development: $10k–$40k
  • Brewery operational contributions: $20k–$80k
  • Website / IT / systems: $5k–$25k
  • 3.5 years labor (underpaid founder-level work): $150k–$300k

📊 Total value range

  • Low: ~$225k
  • Realistic: $300k–$600k+
  • High: $700k+

and about how I should had negotiated.

🧾 Buyout / Compensation Models

Option A — Straight Buyout

  • $300k–$600k one-time payment
  • Clean separation, no future ties

Option B — Hybrid (most realistic in family businesses)

  • $100k–$200k upfront, plus
  • Ongoing revenue share tied to what was built

Example structures:

  • 5%–10% of net revenue from:
    • Food truck operations
    • Recipes/menu items created by this person
  • OR 3%–5% of total business revenue (simpler, harder to manipulate)

Add a minimum floor:

  • Example:
    • “Minimum $2k–$5k per month or % — whichever is higher”

👉 This prevents:

  • Getting pushed out and earning nothing
  • Revenue being hidden or minimized

Optional sunset clause:

  • Revenue share lasts:
    • 5–10 years
    • OR buyout clause anytime at agreed multiple (e.g., 3–5× annual payout)

Option C — Equity Conversion (what this actually deserves)

  • 20%–40% ownership stake

This aligns with:

  • Founder-level contribution
  • Long-term value creation
  • Industry norms

Thoughts, opinions, advice, requests for any clarity?

Posted Apr 3, 2026, 4:44 PM UTC

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