What do Restaurant Business Brokers Do?
Restaurant Business Brokers are more similar to a quarterback on a football team than most people think. Restaurant Brokers are the quarterbacks for the sale process. Quarterbacks are known to be some of the smartest people on the team. A team that has a great quarterback has a competitive edge over another group.
Restaurant Business Brokers are responsible for coordinating all the various aspects of the restaurant sale. Restaurant Sales can be more complicated than residential real estate sales or general business brokerage. Remarkably similar to a quarterback position being a specialized position, it takes Restaurant Brokers years to specialize in the minor details of Restaurant Brokerage.
Dominique Maddox, a Restaurant Broker and Founder of EATS Broker, says, “a Restaurant Broker and a Quarterback have to be leaders for the team.” To get a Restaurant listing to the closing table, it takes a team effort’. The more complex the deal gets, the more team members will be added.
Nobody wants the deal to get to the closing table more than the Restaurant Broker. A good Restaurant Business Broker should be able to call an audible if he or she notices the deal is falling apart”.
Facts about a Quarterback:
– Playing a Quarterback is the most demanding position on the field.
– Has to know all the responsibilities for every player on the offensive
– Has to understand how the defense is trying to stop them from scoring
– Has to be able to call audibles if play will fail
– Quarterbacks can be expensive; they usually are the highest-paid player on the team
Facts about a Restaurant Broker:
Specializing in selling restaurants is a tough business; over 60% of Restaurant Brokers will fail within the industry in the first two years.
– Has to know the role of every individual or professionals involved in the deal
– Experienced Restaurant brokers should understand items that could affect the deal from closing.
– Most deals require written amendments to get the deal closed; a Restaurant Broker needs to know when to call an audible to save a deal
– A good Restaurant Broker should contact the lawyers, accountants, landlords, lenders, buyer, seller, and closing attorneys throughout the sales process.
– Restaurant Brokers usually charge 10%-15% or a minimum commission of $10,000
EATS Brokerunderstands the importance of running the offense to score a touchdown and get everyone paid at the closing table. Interested in selling your restaurant? Don’t just hire any Broker; hire a quarterback to get your restaurant sold.
For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbroker.com. Visit our website at www.EATSbroker.com
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How to Sell a Franchise Restaurant?
The decision to sell a franchise restaurant can be challenging in today’s market. The good news is that if you own a Restaurant Franchise, buyers are lining up with interest. Close to 60%-70% of the restaurants for sale in Georgia that sell are franchise concepts.
Franchise concepts are growing right now, while independent owned restaurants are declining. Franchise Restaurants are popular because they come with a proven system, support, business model, logo, IT support, and reputation.
When it is time for a Franchisee to exit the business, they have a couple of choices on how to sell their restaurant. One of the most significant considerations when selling a franchise restaurant is, do I sell to a current franchisee? Or do I sell to a non-franchisee?
Dominique Maddox, a Restaurant Broker and Founder of EATS Broker says, “ selling a franchise restaurant to a current franchisee is much different from selling to a new franchisee. Current franchisees understand the brand; new franchisees need much information to educate them on the Franchise Brand, process, qualifications, training, and closing process”.
Who do you sell your restaurant to, a current Franchisee or a Non-Franchisee? EATS Broker discuss the Pros and Cons:
PROS Selling to an existing Franchisee:
-Dealing with an educated buyer about the franchise
-Has already been approved by the franchise
-The capability of closing a deal fast because they don’t require the standard 4-6 weeks training.
CONS of Selling to a current Franchisee:
-They usually undervalue the business
– They understand the operation of the franchise brand
-They are harder to impress
-It can be challenging for them to get financing
PROS Selling to a Non-Franchisee:
– Can get a higher offer price
– They are excited about the new opportunity
– Usually are not experienced, restaurant owners
– Can sell them the opportunity for growth or proven sales numbers
CONS Selling to a Non-Franchisee:
– Lots of education about the buying process is needed
– Have to get approved by Franchisor
– Have to do the required training before a new franchisee can complete the sale. Training process is usually 4-6 weeks
– Closing process can take 2-4 months
Thinking about selling a restaurant contact EATS Broker. For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbroker.com. Visit our website at www.EATSbroker.com
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