Partnership Agreements for COAM Businesses

ATM/COAM Business Lawyer

Coin-operated amusement machines are a highly-regulated business in Georgia. When two people decide to go into business together as partners, they need a detailed agreement to protect themselves. Like any partnership agreement, this contract must provide specific rights and obligations for each of the parties.

One of the most important aspects of a partnership agreement is the dispute resolution mechanism. If the two partners have a disagreement, the very existence of the business could be at stake. The agreement should spell out exactly what happens when the two partners cannot come to an agreement. The best solution when the partners disagree is often to require them to first go to mediation.

The partnership agreement must lay out how decisions are made for the partnership in light of one partner’s legal ability to bind the business. Ideally, you should have a system of checks and balances to ensure that decisions are not being made in a risky and haphazard manner.

Another issue with partnerships is the responsibility that one partner has for the actions of the other. In a partnership, each partner has responsibility for the actions of a partnership. Therefore, you should consider limits on the authority of each partner. Given the highly-regulated nature of the business, you should consider when to incorporate the business as a limited liability partnership.

Finally, the partnership agreement should include things like the percentage ownership of the business and division of the profits. One partner may provide more capital, while the other provides more labor and effort. Accordingly, profits may not be split 50-50.

Contact an ATM/COAM Business Lawyer

If you are considering a partnership agreement for a COAM, you should have legal help in drafting and reviewing the agreement. Call the attorneys at Battleson Law LLC at 770.398.0720 or contact us online to discuss your situation.


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