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Gaining synergy from side-by-side businesses, but without partnership.

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Pipan

Active Member
What is the name of your state? TX

Hi All

I am planning for opening a dental specialty office. My friend, who is also a dental specialist, but in a different specialty of dentistry, is going to open his own office next door in a wall-to-wall space. We are not business partners at all but we share lots of information in the planning phase. My office space is going to be 1.5 times larger than his office. We are hopeful (not sure yet) that by using the following strategies we can get more synergy and vibe from each other's business to imply to patients that we are a 1-top multi-specialty office rather two separate dental offices, and also to do marketing together:

Possible Strategies:
1- The two businesses share the same entrance door, and common waiting lounge.
2- The two businesses share a common signage.

Please let me know if you see anything wrong or risky about each of the above strategies.
One thing that I can think of is that with the 2nd strategy we may have to use the same business name on the signage, which can be impossible because two business entities cannot carry the same name at least in one state. I have found a name which is formed by marriage of both dental specialty names, but I doubt that both of us can register it. Any idea how we can get around this? Also, will we get into trouble in terms of sharing a name, if one of us decides to relocate somewhere else after a few years?

Thank you for your time.
 
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adjusterjack

Senior Member
Nothing wrong or risky with the strategy as long as you both have the appropriate insurance on your businesses.

Why not just say Dentistry on the building sign and then differentiate with appropriate signs and brochures in the waiting area.

You're not going to be relying on just the outside sign to draw customers, right?
 

Pipan

Active Member
AdjusterJack

Thank you for your response.
I think we prefer the full name of the business on the sign monument and also on the business building rather a generic name of the profession.
The answer to your question is No, we will use different methods for marketing, and will not solely rely on signage.
 

adjusterjack

Senior Member
Look into "joint venture" where two businesses retain their identities but work under a common name (i.e.:, Bailey and Spencer Dentistry).

As for one of you having to relocate or otherwise terminate the relationship, you put that in your written agreement as to who does what how.

Why can't you put both your business names on the sign?

You might be making this more difficult than it has to be.
 

Pipan

Active Member
I'll definitely look into joint venture.
We were thinking about using a business name that does not have our own names in it, such as "Apple Dentistry". Then below that name we describe the specialties such as "orthodontics and periodontics". Is this going to make it as difficult as you said?

Thank you.
 

quincy

Senior Member
I'll definitely look into joint venture.
We were thinking about using a business name that does not have our own names in it, such as "Apple Dentistry". Then below that name we describe the specialties such as "orthodontics and periodontics". Is this going to make it as difficult as you said?

Thank you.
It would be simplest to just list both business names on the signs (e.g., Apple Orthodontics and Plum Periodontics) so you do not deceive dental patients into thinking your businesses are one and the same.

Our first pediatrician operated out of a building that had a common waiting area but housed many different medical businesses. All businesses were listed on a single outdoor sign.
 

Taxing Matters

Overtaxed Member
I'll definitely look into joint venture.
We were thinking about using a business name that does not have our own names in it, such as "Apple Dentistry". Then below that name we describe the specialties such as "orthodontics and periodontics". Is this going to make it as difficult as you said?
The problem you have in doing that is that the customers coming will think that you are both the same business. And then if a customer has a problem with something the other guy did the customer might succeed in suing both of you for it. In short, you could end up facing liability for things the other guy does because to the public it appears it is all one business. I strongly suggest you discuss the issue with a local business attorney to ensure whatever common signage or marketing you do still clearly tells the public that you each are separate businesses if you don't want to run that liability risk.
 

quincy

Senior Member
Here is a link to the Texas Deceptive Trade Practice-Consumer Protection Act:

https://statutes.capitol.texas.gov/Docs/BC/word/BC.17.doc
Scroll to Section 17.46 Deceptive Trade Practices Unlawful. Deceptive trade practices include any practice that causes consumers "confusion or misunderstanding as to affiliation, connection, or association with, or certification by, another."

You should have your business plans personally reviewed by a business law professional, as earlier advised. If you do not intend to merge your business officially with that of the other dentist (e.g., forming a partnership, corporation), you should not lead consumers to think you are connected. Sharing the costs of the shared lobby, and having a sign listing both your business names, on the other hand, should not be a problem.
 
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adjusterjack

Senior Member
We were thinking about using a business name that does not have our own names in it, such as "Apple Dentistry". Then below that name we describe the specialties such as "orthodontics and periodontics". Is this going to make it as difficult as you said?
You're overestimating the intelligence of the American consumer. The first thing he will see on your sign is that it's one business regardless of how you back pedal it on the inside. The last thing he will remember when trouble starts is one business and a smart lawyer will sue both of you.

Put both your business names on the sign and keep everything separate on the inside.
 

Pipan

Active Member
Thanks all for the heads up and comments. I will definitely talk to a lawyer about this. I will read the Practice-Consumer Protection Act. I may get back to you with additional ideas.
 

quincy

Senior Member
I think you are smart to talk to a local attorney.

We all appreciate the thanks, Pipan, so thank you.

Good luck.
 

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