A deal is a deal.
Not surprising at all. I’ve often wondered how long until the deals unravel and one side or the other sours.
The Bakers’ are majority shareholders, and as such, they presumably run all daily operations of the company
So how does John “cut them out of their share of profits” or do business planning without them?
I’ve worked with a lot of small/family companies - they sometimes exhibit the dysfunction, biases and craziness of the family or its head.
I would never do business with the sharks. For most of them it’s all about the revenue. For many small business owners, scaling up is not always the answer. It brings other problems like investors, logistics, personnel, distribution channels, etc.
Not unusual for people to negotiate a deal for what they want, then later when prosperity comes to feel cheated by their deal. I’ve seen it in real life.
[The family later said they received around 4 percent of the stated $16 million in revenue...]
What was the profit from that revenue after expenses? If profit is 6% and the Bakers are getting 4% (~2/3rds) then that is what they agreed to when they sold 35% ownership for 100K.
Based on the evidence here, the family got greedy and tried to kill the golden goose.
Percent of revenue is meaningless.
I love watching the show. It’s amazing what people can come up with. With that, if I did invent/ create something, I would say I’d want the widget made in the USA, not overseas.