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Some friends and I have been discussing this, and I want to get some more opinions on this scenario. Please keep the discussion civil, and On Topic. Here is the scenario, I apologize if it seems a bit long:
A young man, 19 or 20 years old, is given a restaurant by a friend/ partner that has been running the place for about 6-8 months. The restaurant has been very successful, and has a general manager and team of assistant managers that have been running the place quite well. The new owner has a burgeoning career at another business, so he allows the restaurant to be run by the GM and AMs, offering his opinion when asked on important matters, as well as coming in on a regular basis to consort with customers, help out the wait staff when needed, etc.
The formula for the restaurant works so well, that after a year or so, it is pretty much running on cruise control. The owner allows the GM free reign to do things to improve the restaurant, enter contracts with suppliers, and even take in advertising money for ads placed throughout the restaurant and in the menu for goods and services that the customers may find interesting.
This continues on for a couple more years, everything running fine, the owner coming in and asking the GM if he needs anything (financial support or otherwise), enjoying the food, and maintaining relations with all the regular customers. But, the owner's presence gradually decreases to the point that a lot of the regular customers, many of whom started coming to the restaurant well after the original owner gave it to his friend, have the false impression that the GM is also the true owner of the restaurant.
Does the GM, who has been given pretty much full reign over the restaurant, including having every contract with the suppliers and utility companies in his own name, have the right to sell the restaurant to someone else, without consulting with the owner, and without giving the owner any of the proceeds?
Discuss.
A young man, 19 or 20 years old, is given a restaurant by a friend/ partner that has been running the place for about 6-8 months. The restaurant has been very successful, and has a general manager and team of assistant managers that have been running the place quite well. The new owner has a burgeoning career at another business, so he allows the restaurant to be run by the GM and AMs, offering his opinion when asked on important matters, as well as coming in on a regular basis to consort with customers, help out the wait staff when needed, etc.
The formula for the restaurant works so well, that after a year or so, it is pretty much running on cruise control. The owner allows the GM free reign to do things to improve the restaurant, enter contracts with suppliers, and even take in advertising money for ads placed throughout the restaurant and in the menu for goods and services that the customers may find interesting.
This continues on for a couple more years, everything running fine, the owner coming in and asking the GM if he needs anything (financial support or otherwise), enjoying the food, and maintaining relations with all the regular customers. But, the owner's presence gradually decreases to the point that a lot of the regular customers, many of whom started coming to the restaurant well after the original owner gave it to his friend, have the false impression that the GM is also the true owner of the restaurant.
Does the GM, who has been given pretty much full reign over the restaurant, including having every contract with the suppliers and utility companies in his own name, have the right to sell the restaurant to someone else, without consulting with the owner, and without giving the owner any of the proceeds?
Discuss.
