Need help in fixing consulting fees?
I am setting up a gym. A close relative who is from gym industry who has a good reputation in his field is helping me out to set the gym. He has done all the process like finding a good property to rent out, now working on getting up the equipment, interior, flooring, advertising etc and all. He has kept his team for my project. After the gym is set he will give his management to me and his brand name for my business. His team will work along with me and he will be visiting my gym for consulting like 4-5 days a month. Right now i take myself as a financier. The total project will cost me 50 lkh. Then I have to borne monthly expenses like rent, staff salary, bills etc which goes upto 6.5 lkh per month. Now the thing is what shall i give in return to him for the services which he has provided. I need help in letting his consultant fees. Do i give him a direct lump sum amount as his consultancy fee (if so how much it should be approx), or do i need to give him percentage from my profit earned for that particular month (if so how much % shall I provide him with & how many months)