Legal Question in Business Law in Pennsylvania

As a Franchise Attorney I can tell you there are a number of ways to structure this. An option for the 20% can be issued, for appropriate considerations, that can be exercised for all 20% or for fractional amounts, depending on the deal. Or you can issue fractional amounts (5% for X amount, etc.). Don't issue the 20% up front. This is an area where you need to use a good attorney; don't try to do this on your own. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation