Ok so after reading what has been said as well as seeking advice elsewhere, I have decided that any kind of partnership is out.
He is going to check with his insurance to find out what kinds of allowances there are, but I'm leaning towards a rental offer on his equipment and carrying my own insurance. The biggest possible hangup is that he does sell food. He just doesnt use the Smoker so I would have to know what kind of profit he makes from his kitchen to know what kind of offer to make.
That being said I can also see the benefit of a payroll deal because the risk is minimal, but therefore so is the reward.