What would be a typical percentage of investment to be paid to a silent partner in the restaurant field ?

Question

I am looking to structure a deal with a fast casual franchise. I currently operate a unit and have been offered a chance to purchase said store and an additional store with territory rights.The territory has room for at least 4 more stores. I would like to know what a common arrangement would be for a silent partner.

Answer 1

A "silent partner" cannot own more than 50%, or he isn't considered "silent" by definition.  It is typical that a silent owner has about 20% of a business.  If he has more than that, he is often too interested to remain "silent."

However, silent partners (parents, friends, others) sometimes own up to 49%.  I'd say typically a silent partner is 10-30% in a fast food franchise.