When discussing WSI franchise methods, we’ve previously talked about the return on investment and aspects to consider about it. There are ways to increase your rate of return, though they may seem counterintuitive at first. One of them is to invest more into your business up front by hiring employees or bringing on partners.
The specific amount of the divided profits is up to you, of course.
If you have partners in the venture who invest equally with you, clearly it makes sense to have a roughly even divide of the profits, modified by participation: It doesn’t matter if you, Dylan and Greg all paid in the same amount; if Greg is working less than you and Dylan, he should get his equal return but will do so at a slower rate. It’s only fair.
On the other hand, if you invest everything and hire an employee, you have all the control in the matter. You should set them a fair and legal rate of pay, and not worry about a share of the investment being returned to them.