When an Equity Stake Can Be an Attractive Fee Option
Kevin E. Houchin, a Fort Collins, Colo.-based solo practitioner, is placing a bet on an entrepreneur’s dream of opening a 14,000-square-foot brew pub.
Gene Gregg has professional brewing experience, clearance from the city and the go-ahead from Rite Aid, which owns commercial space on the southern end of town once intended to be a drugstore. While Gregg lacks seed capital, his enthusiasm for the project convinced Houchin—who works primarily with startups—to provide legal services for no fee in exchange for a 5 percent piece of the action.
“Somebody comes in with an idea that sounds fun, that I’d like to be involved with anyway and they’re obviously going after their passion, then I’m open to doing it,” says Houchin, adding that he was selective about the decision and has frequently turned down similar offers from entrepreneurs whose ideas seem questionable.
“He’s pretty far down the line with his plans and approvals,” says Houchin, who will handle matters related to incorporation and ownership throughout the life of the venture, services he estimates could be worth $5,000 to $10,000 in the first six months alone.
Continue reading “Stocking Up” online in the July issue of the ABA Journal.
