Selling a restaurant is not just a business transaction; it is a specialized legal and financial feat. The primary advantage of using a Restaurant Broker is that they understand the resale process. Unlike selling a home or even a traditional commercial property, a restaurant sale involves much more than square footage and location, requiring a deep understanding of cash flow, operations, leases, licenses, and buyer psychology.
If you are learning how to sell your restaurant, you’ve likely wondered about the advantage of using a restaurant broker. At EATS Broker, we focus on this niche, helping clients maximize exit value and maintain confidentiality. To understand what makes restaurant sales distinct, consider what you are truly offering to a buyer.
When you sell a restaurant, you are selling:
* Cash flow and profitability (not just revenue)
* Seller’s Discretionary Earnings (SDE)
* Equipment, furniture, fixtures, and leasehold improvements
* Brand equity and goodwill
* Systems, staff, and operational continuity
* A lease that must be assigned or renegotiated
* Licenses and permits (often including liquor licenses)
* Franchise Agreement for Franchises
Restaurant Broker Tip: Real estate agents are trained to sell buildings. In contrast, restaurant brokers specialize in selling operating businesses. One of the most significant advantages of using a restaurant broker is the accuracy of restaurant valuations.
Restaurant Valuation Requires Specialized Expertise
Restaurants are typically valued using Seller’s Discretionary Earnings (SDE), not price-per-square-foot or comparable home sales. An experienced restaurant broker understands:
* Industry-specific SDE add-backs
* Normalized owner compensation
* Market multiples for restaurants (not generic businesses)
* The impact of management structure vs owner-operator models
* How lease terms affect valuation
* How equipment condition and build-out savings impact buyer demand
Setting the right price is crucial. Overpricing can kill momentum, while underpricing wastes value. A qualified restaurant broker positions your business accurately from the start.
Confidentiality Is Critical When Selling a Restaurant
One of the greatest risks of selling a restaurant is exposure. If employees, vendors, landlords, or competitors learn the business is for sale prematurely, it can:
* Damage staff morale
* Trigger landlord concerns
* Disrupt vendor relationships
* Alert competitors
* Reduce negotiating leverage
A professional restaurant broker uses:
* Confidential marketing strategies
* Non-Disclosure Agreements (NDAs)
* Controlled buyer qualification
* Anonymous listing techniques
Restaurant Brokers Tip: This protects the business while still reaching serious, qualified buyers. EATS Broker requires a buyer to sign a non-disclosure agreement and provide proof of funds in the form of a bank statement, 401(k) statement, or a letter from a banker before providing information on most listings.
How long does it take to sell a restaurant? Having discussed confidentiality, let’s shift to another practical aspect: the timeline involved.
A home can sell in 30 to 60 days in a hot market. A restaurant, however, typically takes 6-8 months to a year to close. Why? Because the “due diligence” phase is significantly more intensive, the success rate for a resale is 30%-40%.
A restaurant broker manages the mountain of paperwork that a real estate agent isn’t trained for, including:
* Lease Negotiations: Navigating strict landlords and complex assignment clauses.
* Financing: Helping buyers secure SBA loans specifically for business acquisitions.
* Liquor License Transfers: Managing the red tape of state and local municipalities.
* Franchise Approval: Helping the buyer communicate with the Franchisor
A realistic timeline for selling a restaurant often includes:
* Valuation, preparation, and onboarding the listing: 2–4 weeks
* Marketing and buyer outreach: 60–120 days
* Buyer due diligence: 10–30 days
* Financing and landlord approval: 30–60 days
* Franchise Approval and Training- 30-150 days, depending on the brand
* Closing coordination: 2–3 weeks
A restaurant broker manages this entire process so owners can continue operating the business without distraction, protecting revenue while the sale is underway.
Why Restaurant Owners Use EATS Broker
Dallas Restaurant Broker Dominique Maddox (CBI, CFE) says, “ At EATS Broker, we specialize exclusively in restaurants, bars, nightclubs, and franchise resales. Our focus allows us to deliver accurate, defensible restaurant valuations, protect confidentiality, negotiate leases strategically, Market to qualified buyers nationwide, and manage the transaction from valuation to closing. Selling a restaurant is too important—and too complex—to leave to generalists.
Commission Differences: Restaurant Broker vs Real Estate Agent
One of the first questions owners ask a Restaurant Resale Specialist concerns commission rates. A standard residential real estate agent typically charges a commission of 5% to 6% of the property’s sale price. In contrast, specialized restaurant brokers often charge a success fee ranging from 8% to 15% of the business sale price.
Why the difference?
• Asset vs. Operations: A real estate agent is selling a physical structure. A restaurant broker is selling a living, breathing business entity. This includes valuing goodwill, SDE (Seller’s Discretionary Earnings), and intangible assets like recipes, branding, and trained staff.
• Marketing Costs: Selling a restaurant requires niche marketing on specialized platforms, not just the MLS.
• The “Payday” Model: At EATS Broker, we work on a commission-only basis. This means we take on all the upfront costs.
When negotiating a Commercial Lease with a landlord, what is the Advantage of using a Restaurant Broker?
Restaurant leases are complex, and most deals fail or succeed at this stage. A qualified restaurant broker represents the tenant’s interests and understands:
* Restaurant-specific lease structures
* Build-out economics and TI negotiation
* Assignment clauses and landlord approval requirements
* Relocation, renewal, and exit clauses are critical for resale.
Importantly, restaurant brokers are typically paid by the landlord, not the tenant. This means the tenant receives professional representation at no direct cost, thereby leveling the negotiating field. Just as landlords hire professionals, restaurant owners should do the same and hire Restaurant Brokers.
At EATS Broker, our founder, Dallas Restaurant Broker Dominique Maddox (CBI, CFE), brings over a decade of experience to the table. We understand the restaurant resale process and the specific negotiations that can make or break a deal.
Ready for Your Restaurant Payday? As you consider your exit strategy, remember the benefits covered above when choosing the best partner for your restaurant sale.
Don’t leave your exit strategy to a generalist. Whether you are looking for a free restaurant valuation or want to learn more about the current market, EATS Broker is here to help. Visit www.EATSbroker.com