Direct equity vs revenue share
Equity = ownership stake (with all the risk and upside). Revenue share = % of future sales for a fixed period.
Standard deal terms
Equity: $25k buys 5–10% in a small restaurant. Revenue share: $10k–$50k returns 2–3x over 3–5 years.
Vet the operator
Have they run a restaurant before? What's their P&L from prior ventures? Walk through prior locations if any.
Legal
Operating agreement spelling out distributions, exit, governance. Don't shake hands and write checks.