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Cowboy Espresso Café 2012 1
Cowboy Espresso Café
Business Plan 2012
Partnership
Christian Hansen-Hake; James Hake; Pierangela Davisson
February 25, 2012
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 2
Note: insert current picture inside/outside
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 3
Business Plan Outline
Cowboy Espresso Café, LLC
Christian Hansen-Hake; James Hake; Pierangela Davisson
Business Description
Purpose of Plan
To purchase an existing business: Cowboy Espresso, Inc., located at 105 S. Santa Fe Ave.
Fountain, Colorado, 80817 for the agreed purchase price of $30,000. A combination of
personal funding and bank loans/business grants are planned as means to obtain said
business.
Business Name
Cowboy Espresso Café, LLC
105 S. Santa Fe Ave. Fountain, Colorado 80817
Mission Statement
To Glorify God by setting a Christ like example within the community of Fountain
To provide the Fountain Valley with superior customer service within a friendly
environment
To provide families and youth a positive social gathering place
To provide a casual location for small groups and organizations to conduct meetings and
events
To offer catering to local citizens of the Fountain Valley for social, business, and
charitable events
Business History
The business was established to provide the Fountain Valley with a small, socially
oriented coffee and retail establishment where locals would be offered a quality
product on the way to or from work/school, as well as a place to socialize, relax, and
conduct meetings/events. Cowboy Espresso Inc. has met this expectation and currently
has several regular customers. The offerings have grown to include quality pastries,
snacks, ice cream, soups, and sodas. The current owner also provides retail gifts and
cards as well as successfully running the business with a profit without sacrificing service
or quality.
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 4
Industry Sector
Food service
o Industry structure and trends
Size: growing within the state and nationally
Local threats: Starbucks, Loaf-n-Jug, Chick’s Drive Thru Espresso, coffee
prices, fuel prices, military deployments
Barriers: low; it is an established business with a loyal customer base
Switching costs: with two other coffee shops within a 5-mile radius, the
business needs to focus on becoming an active presence in the
community. This is an area in which the other do not tend to venture
Basic Value Proposition
Provides a place for people within the community to gather
Provides a relaxing atmosphere with free Wi-Fi connections for adults and students to
work and study
Provides a space for community organizations, small groups, and businesses to meet
Provides catering to larger venues that cannot be accommodated by the building size
Provides support for local schools, community activities, and community support
organizations
Core Strategy
To provide quality coffee, espressos, and other specialty drinks, as well as fresh made
pastries, snacks, and handcrafted gourmet chocolates
To provide local catering for events and gatherings
To provide fundraising opportunities for non-profit organizations within the Fountain
Valley
Key Success Factor
Prime location
o Central intersection in Fountain (direct route to City Hall)
o Next to the Post Office
o Two blocks from a Middle School
o 1 mile from Fountain-Fort Carson High School
Keeping costs low
o Research costs without sacrificing quality
o Consolidate vendors to a minimum (i.e. one coffee provider)
o Become more energy efficient
o Reduce paper costs and waste by providing dishes and cups for eat-in customers
and price incentives for consumers who provide their own containers
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 5
Negotiating favorable partnering agreements
o Providing a community board for local businesses
o High market visibility within the community
o Advertising with local agencies
o Participating in community wide activities and programs
o Becoming a booster for the Middle and High School
Goals
Immediate
o Remain self-supporting
o Become more involved within the community
o Eliminate clutter
o Create an environment that encourages people to stay in and socialize
o Become OSHA/Health Department compliant
o Become environmentally savvy
o Become more visible in the community with expanded hours, word of mouth,
and participation.
6 months
o 75 sales per day; averaging $5.00
o Create an “Open Mike” night
o Become a school booster
12-18 months
o 100 sales per day; averaging $8.00
o Increase catering/outside sales
o Provide job coaching to transitioning special needs students
3-4 years
o Add a part-time employee
o Possibly expand into the rest of the facility or find a larger location nearby
6-10 years
o Expand to a second location
o Add a drive through
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 6
Uniqueness
Outstanding Customer Service
Prices competitive to the area
Providing handmade chocolates and pastries
Relaxed environment with patio seating
Quality handmade breakfast and lunch items
A meeting place for small groups
Provide catering for events and meetings
Locally owned, using local product
Networks with other local businesses to improve the local economy
Driving Forces
Social and lifestyle
o Fountain is a growing community adjacent to Fort Carson, and between Colorado
Springs and Pueblo
o The area serves two school districts and has two high schools, two middle schools, and
four elementary schools (Districts 3 & 8) within 5 miles
Economic
o There is a major interstate (I-25) exit within one mile of the shop
o Housing developments are growing within the community and the neighboring
unincorporated townships of Widefield/Security (projected 14% growth by 2014)
o The region’s economy is growing and will continue to grow with the addition of a
training facility on Fort Carson (numbers unknown at this time)
o City zoning laws have been put into place to encourage the growth of small businesses
Technological
o Free Wi-Fi offered to provide a hub within the community
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 7
Products and Services
Specialty coffee drinks (iced and hot)
Smoothies
Other specialty drinks; i.e., horchata, teas
In the summer, add ice cream sodas and floats
Handcrafted chocolates
Ready to eat foods
Handmade pastries
Catering
Breakfast and lunch choices
Free Wi-Fi
Needs addressed
Food and drink for sustenance and comfort
Social atmosphere
Small business growth
Production
Each specialty drink made to order and customized for each client
Locally made products (i.e., chocolates, pastries)
Quality control
all handmade product given use by date
OSHA standards followed
Health Department standards met or exceeded
Encouragement of customer feedback
Inventory control to lower costs and waste
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 8
Research and Development
Conducted
o Pricing for drinks and equipment
o Advertising
o Pricing for food products
Needed
o Ways to encourage patronage of local students and military
o Lengthened business hours
o Networking with other local businesses
o Ways to lower casts without lowering quality
Copyright/registrations
o Need IEN number (done)
o Need trade name registration (done)
o Need business and tax licensing (done)
o Need food service license (done)
Product liability insurance
o Covered under business insurance
Regulatory issues
o Federal
OSHA-www.osha.gov/SLT/restaurant/index.html
o State
Food service license
Forms and inspections from El Paso County Health Department
o Garden of the Gods Road, 3rd floor; 8am-5pm Monday-
Friday (done)
Retail tax license
Forms from Colorado Department of Revenue (done)
Labor Laws
Forms from Colorado Department of Labor and Employment
(when needed)
Income tax and wage withholding
Set up a tax account (done)
Local
Fountain Business License-$35.00 per annum (done)
Chamber of Commerce-$60.00 per annum
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 9
Service Description
Specialty drinks, light foods, pastries, handcrafted chocolates, social gathering place,
catering
Materials or equipment
Coffee
Coffee maker
Espresso machine
Commercial blender
Syrups
Dairy products
Refrigeration
Ice maker
Table service: washable and paper
Seating
Foods
Desserts
Labor needs
For the present the labor will be provided by the proprietors
Days and hours of operation
Monday-Friday 5:00am-5:00pm
Saturday 7:00am-12:00pm (subject to change)
Sunday Closed
Holidays
o Thanksgiving Eve 5:00am-2:pm
o Christmas Eve 5:00am-2:00pm
o Christmas Day Closed
o New Year’s Eve 5:00am-2:00pm
o New Year’s Day Closed
o Other major emergencies or other that
Directly affect owners
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 10
Customer Service Process
Smile, greet the customer by name (if known)
Up sell or point out specials
Custom make the product and coupons/discount
Accept payment, thank and ask for return business
The focus is to be on the service to the customer and the quality of the product and
strive achieve 100% customer satisfaction
Pricing strategy
Coffee pricing will be competitive with other chain coffee shops
Additional profits will be achieved from offering handcrafted chocolates, pastries and
snacks
Profits will also be increased by extending service hours, offering catering, participating
in community events, and offering the facility after hours for small group meetings and
parties
Ancillary strategies
o Customer loyalty cards
o Offering discounts to students, teachers, and military
o Seasonal discounts
o Facebook and online promotions
o Additional low cost advertising as opportunities arise
Product costs and Margins; averages in financial models
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 11
Marketing Analysis Strategy
Target Customer
Type
Anyone who likes coffee or specialty drinks or just needs a place to relax
Students, families, locals within the community, and military
Geographic location
City of Fountain and surrounding unincorporated townships
Demographic Factors
Consumer
Educators and students within the two local districts (3 & 8)
Local families
Local businesses
Post office
Military
Travelers on the way to and from work
Those in need of, or interested in, free Wi-Fi
Market size (code for coffee shop is 7222135)
Total population of Fountain is 39,000 with a 14% growth
projected by 2014
Adjacent to the state’s largest employer; Fort Carson, which
services 77,000
Number of local businesses: 400
Sales/revenue for market ($1000): $47,000
Annual payroll average as of 2002 ($1000): $12, 000
Number of local employees: 1,500 (approx.)
Number of local coffee establishments: 3
Networks
Fountain Valley Chamber of Commerce
City of Fountain Downtown Association
Networking within peer groups
Local advertising: Fountain Valley News, The Mountaineer
Becoming a school booster
Social media, i.e., Facebook, Twitter, Foursquare, etc.
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 12
Competitive analysis
Starbucks: 3 miles Northeast inside Safeway
Chain oriented
Convenient
Quality product, high cost
limited to coffees, some snacks
small seating area
well known
Chicks: 5 miles North
Drive through service only
Along Highway 85/87 in a parking lot
Quality coffee, more price competitive
Gas stations/Convenience stores: 2 within one mile
Loaf-n-Jug/7-11
Expanded coffee bar (Loaf-n-Jug)
Inferior coffee, high cost
Not consistently fresh
Added food service
Small grocery
Fuel stop, so convenient
Positioning Method
To provide quality coffee, specialty drinks, snacks, and chocolates within
a welcoming, friendly environment
To support local businesses and product as often as is possible
To actively participate in the community
Word of Mouth
Nature of product or service
Relaxed atmosphere
Encourage social gathering
Quality
Product Contagiousness
Product will sell itself
Sampling as often as is feasible
Main idea/selling point
Comfort
Welcoming
Free Wi-Fi
Business slogan
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 13
“come in and sit a spell”
Network Hubs
Chamber of Commerce
Become active members
Become involved in the success of the
community at large
Promote local events
Participate in and host “Business After Hours”
(local meet and greet )
City Council
Involved in the success of local business
Promote local events
Some members are regular customers
Regularly cater meetings
Downtown Business Association
Participates and organizes city functions; i.e.,
Fountain Fall Festival, Cowboy Christmas,
Farmer’s Market, Thunder in the Valley
Public Service Departments
Police and Fire Departments are a block away
Involved in the success of the community
School Districts 3 & 8
Comprises most of the city’s families
Promotes community activities
Participates in community events
Consumer Networks
Military, their families, and Civil Service
Open convenient hours for to and from work
traffic
Fort Carson is the largest employer in the state
and the shop is located in a prime location
Teachers and students of school districts 3&8
The teachers are currently a large part of the
customer base
Focus on bringing more students into the shop
Free Wi-Fi is a large student incentive
City of Fountain
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 14
Being a small town, word of mouth is very
useful
Seeding/Word of Mouth Tactics
Offer loyalty cards
Honor existing loyalty cards
Cater for special events
Host small events to help promote other
businesses or non-profits
Provide a community board for local advertising
Advertising and Promotions
Yellow pages, including online
Local newspapers
Radio; become a Business Impact Partner for WAYFM
Social media, i.e., Facebook, Twitter, Foursquare, etc.
Website
Neighborhood fliers
Business cards with customer loyalty incentives attached
Public Relations
Press release; grand opening and special events
Encouraging small groups to use shop for meetings after hours
Fundraising for non-profits
Sales Promotions
Coupons
Loyalty cards
Daily/weekly/monthly specials
Facebook only promotions
Sampling
Holiday specials
Quantity/catering discounts
Discounts for teachers, military, city employees
Discounts for providing own cups; focus on a “green” presence
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 15
Customer experience
Identity through name, logo, and reputation
Superior customer service
Consistent communication
Warm, welcoming atmosphere
Wi-Fi
Neighborhood gathering place
Location
In existing location
400 sq. ft. section of 1,200 sq. ft. building (providing expansion possibilities)
Lease of $300 per month with a yearly renewal
High traffic area
o Main intersection into Downtown Fountain
o Next to Post Office
o ½ from exit 128 off Interstate 25 to Fort Carson and Pueblo
o 3 blocks from Fountain Middle School
o 2 blocks from City Hall and Fountain Public Library
o 1.5 miles from Fountain-Fort Carson High School
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 16
Operations Team
Owners/Partners
o Christian Ellen Hansen-Hake
20 years in food service
Quality control
Customer service
Food safety
Inventory control
Training
B.S. in Organizational Management
o James Joseph Hake
12 years in education
11 years in food service
Mentoring
Scheduling
Food safety
Customer service
B.S. in Organizational Management
Certification as Special Education Generalist
Pursuing M.A.
o Pierangela Davisson
36 years Administrative and business
Logistics
Customer service
Leadership
Multi-lingual
Professional Service Providers
o Attorney; TBD
o Accountant: TBD
o Bank: Chase
o Bookkeepers: James Joseph Hake/Pierangela Davisson
o Insurance: State Farm
Personnel
o Number and type needed
Immediate
Christian Ellen Hansen-Hake & James Joseph Hake
1 year
Owners/partners + family members
2-5 years
1 part time employee over family
5+ years: TBD
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 17
o Training needs
None at this time
o Compensation systems
Currently owners/partners will split profits
1 year
Family will work for small wage and tips
2+years
Hourly compensation and tips
o Payroll Administration
TBD
Legal structure of Business
o Family Partnership
o LLC
Insurance and Risk Management
o Property insurance: $800 estimated per annum
Fire/theft
Inventory coverage
o Casualty insurance
General liability
Product liability
Professional liability
Errors and omissions
Surety bonding
Time Element: still researching options
o Business income interruptions
o Extra expense coverage
o Employee insurance: TBD
Accounting system
o QuickBooks
Weekly/monthly balance with a bookkeeper
Quarterly reports with all three partners and accountant
Financial Projections: see attached financials
Exact Business Description
o State code for coffee shops is 7222135
Limited service eating establishment with seating
o City of Fountain code for coffee shops is 72221
Limited service eating establishment with seating
Sales potential in the local market is 33% of the premium coffee
sales in Fountain with a potential for increase
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 18
Seasonality Factors in Financial Model
o Need to adjust marketing for the summer months to account for more
students out of school and the warmer weather to potentially drop
coffee sales
Solutions
Adding ice cream sodas
Adding floats
Adding milkshakes
Focus placed on Frappes and Smoothies
Participation in Farmer’s Markets in Fountain and
Woodland Park
Hosting special events
Materials and Equipment: see attached inventory
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 19
Cowboy Espresso, Inc.
02/15/12 Balance Sheet
Accrual Basis as of February 15, 2012
ASSETS
Current Assets
Checking/Savings
BUSINESS CHECKING @ UMB -212.00
1010 · CMB 371.91
1020 · CMB SAVINGS 4,605.13
1030 · Deposits clearing -105.82
2500 · Personal Accounts
2501 · Terra Kraettli -38,968.31
2500 · Personal Accounts - Other -137.34
Total 2500 · Personal Accounts -39,105.65
Total Checking/Savings -34,446.43
Accounts Receivable
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 20
1200 · Accounts Receivable 579.00
Total Accounts Receivable 579.00
Other Current Assets
1120 · Inventory Asset 8,017.35
1510 · Employee Advances -215.00
1530 · Inventory
1540 · Beverages 1,010.15
1560 · Supplies 1,315.03
Total 1530 · Inventory 2,325.18
Total Other Current Assets 10,127.53
Total Current Assets -23,739.90
Fixed Assets
1600 · Equipment 9,183.95
1620 · Furniture 352.73
1670 · Accumulated Depreciation -7,391.00
1680 · Goodwill 42,500.00
1690 · Accumulated Amortization -13,929.00
Total Fixed Assets 30,716.68
TOTAL ASSETS 6,976.78
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
2000 · Accounts Payable -1,721.50
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 21
Cowboy Espresso Inventory
True Compact Freezer 2008 TVC27F $800
True Refrigerator 2006 TVC-27 $700
True Freezer 2007 T23 $1351
True refrigerator double 2007 $1200
True refrigerator glass front 2007 GDM-23 $1266
NUOVA SIMONELLS ESPRESSO 2006 MAC CUPV W3400 $5000
NUOVA SIMONELLI GRINDER 2006 MDX $450
BUNN COFFEE GRINDER 2006 $600
THERMO EXPRESS AQUA BREW 2006 DRIP COFFEE $600
VITA MIX TG & 2 BLENDER 2008 $933
Three VITA MIX PITCHERS 2009 $240
FRIDGADAIRE AIR CONDITIONER 2010 FAM187S2A $425
OMNI 3200 VERIFONE 2011 CREDIT CARD MACHINE$142
SHARP CASH REGISTER 2010 XEA404 $425
AMANA MICRO WAVE COMMERCAIL 2006 1000-LD10D $250
SPT ICE MAKER 2010 IM-100 $225
OTIS SPUNKMEYER OVEN 2009 $200
GAS STOVE $700
EVERPURE WATER SOFTENER MODEL 705 $750
PANASONIC FAX/PHONE 2006 KX-FPG370
2 COMMERCIAL MATTS 2 X 6; 3X4 $100
2 PICNIC TABLES (CUSTOM MADE) $600
STYRUP RACK (CUSTOM MADE) $300
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 22
3 ESPRESSO TAMPERS $165
2 PINE CUPBOARDS $60
2 PINE SHELVES $50
COFFEE CART W/STAINLESS STEEL TOP 2011 $500
PINE BUFFET W/3 DRAWERS $350
3 ROUND PINE TABLES $300
11 PINE CHAIRS $120
9 PINE WOOD TALL SHELVES $135
PINE BOOKCASE/3 SHELVES $50
Two PINE TRASH CANS $30
3 COMMERCIAL RUBBER MATS 2006 $210
RCA TV $25
RADIO/CASSETTE SONY $40
OPEN SIGN/WINDOW $120
OPEN SIGN/DOOR $30
OUTSIDE “A” FRAME BOARDS $250
NEON “ESPRESSO” SIGN $110
ROOF MOUNTED SIGN $3000
MICHEAL GARMEN PLAQUE $300
2 BANNERS (CUSTOM MADE) $110
THANK YOU SIGN $80
Five HOOK COAT RACK $80
EXIT SIGN $50
BARBWIRE COWBOY ESPRESSO SIGN (CUSTOM MADE) $100
ROPE WITH FLOWERS (CUSTOM MADE) $45
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 23
UNATTENDED CHILDREN SIGN $45
COME, SIT, TALK SIGN $45
ANNOUNCEMENT BOARD (OUTSIDE) $80
15 PEG DISPLAY RACKS $35
AMERICAN FLAG W/HOLDER $35
18 FRAPPE CONTAINERS, SIZES VARY $80
PLASTIC STORAGE, SIZES VARY $80
BISCOTTI CASE $90
3 DRAWER COOKIE CASE $50
5 MILK FOAM PITCHERS $70
5 WHIP CREAM BOTTLES $275
4 AIRPOTS $76
VARIOUS MUGS $30
2 NATURE PICTURES $60
CREDIT CARD MACHINE ??
WHIP CREAM CHARGERS $5
FRAPPE MIXES
ESPRESSO
SYRUPS
WHITE ESPRESSO
YERBA MATTE
VARIOUS TEA
SUGAR
CREAMER
SUGAR SUBSTITUTES
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 24
CHOCOLATE SAUCE
CARAMEL SAUCE
CUPS (12, 16, 20 OZ/HOT)
CUPS (16, 20 OZ/COLD)
LIDS HOT/COLD
CASH REGISTER TAPE
CREDIT CARD TAPE
STRAWS/COFFEE STIRRERS
CUP CARRIERS
CERAMIC ESPRESSO CUPS AND SAUCERS
BAGEL SLICER
TOASTER
2 FIRE EXTINGUISHERS
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 25
Partnership Agreement
THIS PARTNERSHIP AGREEMENT is made this 7th day of February 2012, by and
between the following individuals:
Christian Hansen-Hake Address: __________________________
City/State/ZIP: ______________________
Jim Hake Address: __________________________
City/State/ZIP: ______________________
Pierangela Davisson Address: 17711 199th Pl NE
City/State/ZIP: Woodinville, WA 98077
1. Nature of Business. The partners listed above hereby agree that they shall be
considered partners in business for the following purpose:
Owning and managing a Coffee shop.
2. Name. The partnership shall be conducted under the name of Cowboy
Espresso Cafe and shall maintain offices at 105 S Santa Fe Ave., Fountain,CO
80817
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 26
3. Day-To-Day Operation. The partners shall provide their full-time services and
best efforts on behalf of the partnership. No partner shall receive a salary for
services rendered to the partnership. Each partner shall have equal rights to
manage and control the partnership and its business. Should there be
differences between the partners concerning ordinary business matters, a
decision shall be made by unanimous vote. It is understood that the partners
may elect one of the partners to conduct the day-to-day business of the
partnership; however, no partner shall be able to bind the partnership by act or
contract to any liability exceeding $500.00 without the prior written consent of
each partner.
4. Capital Contribution. The capital contribution of each partner to the
partnership shall consist of the following property, services, or cash which each
partner agrees to contribute:
Name of Partner Capital Contribution Agreed-
Upon Cash % Share
Pierangela Davisson $9,500.00
33.33%
The partnership shall maintain a capital account record for each
partner; should any partner’s capital account fall below the agreed to amount,
then that partner shall (1) have his share of partnership profits then due and
payable applied instead to his capital account; and (2) pay any deficiency to the
partnership if his share of partnership profits is not yet due and payable or, if it
is, his share is insufficient to cancel the deficiency.
5. Profits and Losses. The profits and losses of the partnership shall be
divided by the partners according to a mutually agreeable schedule and at the
end of each calendar year according to the proportions listed above.
6. Term/Termination. The term of this Agreement shall be for a period
of ____ years, unless the partners mutually agree in writing to a shorter period.
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 27
Should the partnership be terminated by unanimous vote, the assets and cash
of the partnership shall be used to pay all creditors, with the remaining amounts
to be distributed to the partners according to their proportionate share.
7. Management Duties and Restrictions. The partners shall have equal rights in
the management of the partnership business, and each partner shall devote his
entire time to the conduct of the business. Without the consent of the other
partner neither partner shall on behalf of the partnership borrow or lend
money, or make, deliver, or accept any commercial paper, or execute any
mortgage, security agreement, bond, or lease, or purchase or contract to
purchase, or sell or contract to sell any property for or of the partnership other
than the type of property bought and sold in the regular course of its business.
8. Banking. All funds of the partnership shall be deposited in its name in such
checking account or accounts as shall be designated by the partners. All
withdrawals are to be made upon checks signed by either partner.
9. Books. The partnership books shall be maintained at the principal office of
the partnership, and each partner shall at all times have access thereto. The
books shall be kept on a fiscal year basis, commencing _____________________
and ending _____________________, and shall be closed and balanced at the
end of each fiscal year. An audit shall be made as of the closing date.
10. Disputes. This Partnership Agreement shall be governed by the laws of the
State of Colorado. Any disputes arising between the partners because of this
Agreement shall be settled by arbitration in accordance with the rules of the
American Arbitration Association and judgment upon the award rendered may
be entered in any court having jurisdiction thereof.
11. Withdrawal/Death of Partner. In the event a partner withdraws or retires
from the partnership for any reason, including death, the remaining partners
may continue to operate the partnership using the same name. A withdrawing
partner shall be obligated to give sixty (60) days’ prior written notice of his/her
intention to withdraw or retire and shall be obligated to sell his/her interest in
the partnership. No partner shall transfer interest in the partnership to any
other party without the written consent of the remaining partner(s). The
remaining partner(s) shall pay the withdrawing or retiring partner, or to the
legal representative of the deceased or disabled partner, the value of his
interest in the partnership, or (a) the sum of his capital account, (b) any unpaid
loans due him, (c) his proportionate share of accrued net profits remaining
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 28
undistributed in his capital account, and (d) his interest in any prior agreed
appreciation in the value of the partnership property over its book value. No
value for good will shall be included in determining the value of the partner’s
interest.
12. Non-Compete Agreement. A partner who retires or withdraws from
the partnership shall not directly or indirectly engage in a business which is or
which would be competitive with the existing or then anticipated business of
the partnership for a period of ____________, in those ________ of this State
where the partnership is currently doing or planning to do business.
IN WITNESS WHEREOF, the partners have duly executed this Agreement on the
day and year set forth hereinabove.
_______________________ Partner
_______________________ Partner
_______________________ Partner
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
Cowboy Espresso Café 2012 29
This is a detailed business plan for Cowboy Espresso Café; a coffee shop in Fountain, Colorado
