Selling a Restaurant

Restaurant Resales are HOT right now

Restaurant Resales are HOT regarding buyer’s demand as restaurant sale prices jump 34% in 2021 compared to 2020. BizBuySell’s Insight Report just released its report for Quarter 2 of 2021. Restaurant resale numbers are showing very promising growth and buyer interest. Restaurant resales headline growth as the buyer market seeks reopening opportunities.

Now with restrictions lifted across most industries, buyers are turning to restaurant acquisitions. Restaurants, specifically, was a sector that was drastically affected by the shutdown is coming back strong. While transactions are up 38% over the same time last year at the height of pandemic lockdowns, they are still 16% below Q2 2019 pre-pandemic levels leaving further room for recovery, according to BizBuySell Insight Report.

The restaurant for sale sector sees growth, with restaurant acquisitions up 17% in the second quarter of 2021. In addition to the bounce back in transactions, sale prices increased 34% versus Q1, tied to a 20% increase in median cash flow, according to BizBuySell Insight Report.

Dominique Maddox of EATS Restaurant Brokers says, “Labor Shortage, former employees seeking independence, and restaurant owners seeking retirement are increasing the number of restaurant acquisitions on the market.”

Restaurant Sellers and Restaurant Brokers will be happy to know that restaurants for sale during quarter two of 2021 had 190 median days on the market compared to 219 days quarter two of 2019. This data shows that restaurants are popular when it comes to buyer demand.

Dine-in establishments are expected to increase in market value as restaurant restrictions are lifted in most states. They are at the same time experiencing pressure for the labor shortage. A majority of restaurants have made tough decisions that have included reducing operating hours, closing for days, or going out of business.

The business-for-sale market continued to make gains in the second quarter of 2021, with closed transactions up 5% over the previous quarter. For bargain hunters, this may signal a closing window of the great opportunities made available a year ago, according to BizBuySell’s Insight Report.

For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbrokers.com. Visit our website at www.EATSbrokers.com.

How to validate For Sale by Owner sales numbers

How to validate a For Sale by Owner sales numbers can be a challenge for buyers. A For Sale by Owner listing is a person that decided instead of hiring a Restaurant Broker; chose to represent themselves.

People decide to represent themselves as a For Sale by Owner for several reasons: they don’t want to pay a commission, think the restaurant sales process is simple, and lastly, the clueless restaurant owner that educates themselves on Google.

EATS Restaurant Brokers provides 3 Ways to validate For Sale by Owner sales numbers:

1st-Request a copy of Sales Tax Filings–This represents the gross sales amount the restaurant owner reported to the state government. Restaurant owners who keep accurate books and records pay the correct amount owed for sales tax.

Independent-owned restaurants have many restaurant owners who do not report the correct amount of gross sales to reduce their sales tax bill. Restaurant buyers should only look at the amount reported to State Government.

Sales Tax filings amount can fluctuate from state to state. The statewide sales tax rate is 4% in Georgia, but local rates typically vary from 7-8% (4% for state, plus an additional 3 or 4% for local).

2nd-Request a copy of Tax Returns filed with the IRS, confirm tax returns are the correct ones reported to state government. Tax Returns provide vital information regarding the Gross sales and net profit of a restaurant.

Dominique Maddox, a Restaurant Broker for EATS Restaurant Brokers, says, “I would recommend requesting a Request for Transcript of Tax Return(Form 4506-T) form. Filing this documentation allows the buyer or bank to request tax returns directly from the IRS.

I have experienced instances were the tax returns provided to the buyer did not match the tax returns the IRS had on file”.

3rd-Request a copy of the POS Sales report– The POS Sales report can help buyers understand and simplify the restaurant sales breakdown.

4th- Count the number of customers during peak hours– This is the least recommended method for confirming a For Sale by Owner’s financial numbers. Some buyers like to visit and sit around for a while to monitor the customer traffic count and buying habits.

EATS Restaurant Brokers Tips when buying a restaurant from a For Sale by Owner:

• Inspect the equipment during the due diligence period. Confirm that the restaurant owner owns the equipment and is not leasing it or the landlord owns it.
• Make sure the closing attorney does a UCC lien search days before the closing.
• Ask Restaurant Seller to provide a Sales Tax Clearance Letter before closing.

For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbrokers.com. Visit our website at www.EATSbrokers.com.

EATS Restaurant Brokers Checklist for Selling a Restaurant

Selling a restaurant when you have a checklist can make the process simplified and less stressful. When a restaurant owner wants to sell a restaurant, they mainly only consider gathering financial information.

The process of selling a restaurant requires the restaurant owner to produce numerous documentation and information that can be hard to find.

EATS Restaurant Brokers Rule #1 – Don’t list a restaurant for sale without gathering all the information a buyer will need or might ask for during the buying process.

EATS Restaurant Brokers provides a checklist for a selling restaurant besides the financial information:

When listing a franchise restaurant for sale, some critical information to provide to a Restaurant Broker besides your financials:

• Franchise Disclosure Document (FDD)
• Franchise Agreement years remaining
• Transfer Fee for franchise
• Assignment Fee for Lease
• Required training for a new franchisee
• Upgrade cost for restaurant
• POS sales upgrade requirements
• Equipment List-only items owned by the seller
• Business Entity name registered with the state
• Franchise renewal fees
• Royalty Fees/Marketing Fees
• Provide information on employees FT/PT (work schedule, pay rate)
• Copy of Lease and all amendments
• Size of Grease Trap
• Size of hood system
• 3rd party delivery service provider

When listing an independently owned restaurant for sale, some critical information to provide to a Restaurant Broker besides your financials:

• Copy of Lease and all amendments
• Assignment Fee for lease
• Equipment List-only items owned by the seller
• Utility Providers contact information
• Business Entity name registered with the state
• Provide information on employees FT/PT (work schedule, pay rate)
• Size of Grease Trap
• Size of hood system
• 3rd party delivery service provider

Dominique Maddox of EATS Restaurant Brokers says, “ listing a restaurant for sale requires the restaurant seller to be involved and provide a considerable amount of information.

Restaurant owners should start the process of gathering all the information needed to list a restaurant for sale before contacting a Restaurant Broker”.

Some of the most significant purchases the average American makes will have a checklist with a list of tasks, items to collect, and a roadmap to the finish line. The process of selling a restaurant should have a checklist to follow.

 EATS Restaurant Brokers Checklist for selling a restaurant was made with the intent to help any current or future restaurant seller. Restaurant buyers will also benefit from this blog and start asking for more items.

Selling your restaurant can be difficult if you are not prepared. For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbrokers.com. Visit our website at www.EATSbrokers.com.

EATS Restaurant Brokers sell Papa’s Pizza to GO Franchise

Dominique Maddox of EATS Restaurant Brokers sell Papa’s Pizza To Go located in Crawford, GA. EATS Restaurant Brokers represented the seller and buyer. The seller will enjoy retirement after over 20 years of restaurant ownership.

The business experienced some troubles of staying open last year and this year due to various reasons. The residents of Crawford were worried this location would not open back up. This pizza franchise has been part of the county for over 30 years.

The new owner Dan is excited about the opportunity to keep the legacy of this location going. Dan is now a multi-unit franchise owner of Papa’s Pizza To Go.

Dominique says, “to help restaurant owners that needed to sell due to health and personal reasons and to find a buyer that is excited about the opportunity, this is why I love being a Restaurant Broker. This is the second Papa’s Pizza To Go franchise I have sold, and I’m truly thankful for their corporate team giving us an opportunity”.

In January of 1986, a small-town man and his business partner opened the very first Papa’s Pizza To Go in a small, closet-sized mobile unit in a vacant lot in McCaysville, GA.

Papa’s Pizza To Go was created with “small town USA” in mind and the mantra “think small, grow big” by offering a diverse menu to keep people coming back for more and locally focused marketing to allow restaurant owners to get to know their customers.

Papa’s Pizza To Go locations are in small towns with populations from 3,000 to 6,000 and focused all aspects of the restaurant to the pace of small-town life.

For over two decades of success, Papa’s Pizza To Go has remained committed to serving customers with an expansive menu to satisfy all appetites at a reasonable price with restaurants in Georgia, North Carolina, Tennessee, and Alabama.

For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbrokers.com. Visit our website at www.EATSbrokers.com

How to qualify for a SBA loan

What is essential for underwriting SBA loans, and how to qualify for a SBA loan? EATS Restaurant Brokers receive this question often when talking with restaurant buyers.

Qualifying for SBA loans has multiple vital factors to consider; we will cover the critical points in this blog.

The process to qualify for SBA loans has changed and evolved since the pandemic began. In today’s post-Covid environment, securing financing for RV parks and campgrounds is more easily approved, while fitness centers and restaurants are challenging.

When providing restaurant valuations for restaurant owners, EATS Restaurant Brokers always let them know, based on their financials, if the restaurant will get approved for SBA lending. Dealing with the buyers to get qualified for lending is a much different story.

Dominique Maddox, a Restaurant Resale Specialist, states, “selling franchise restaurants with SBA loans today has far less failure rate than independently owned restaurants. Established franchise restaurant brands give buyers better odds to qualify for bank lending.

Franchise Restaurants for sale have systems, brand awareness, training, Financial Disclosure Document (FDD), and they are proven to have success”.

Selling a restaurant? Here are the 5 Key Factors for Buyers to get qualified for SBA lending:

1. Background

Underwriters are always curious about a buyer’s background. They want to know about the previous work experience and education that could help a buyer be successful. Previous or current ownership and management experience is a huge plus.

If a buyer does not have restaurant experience, then underwriters will consider what current or previous experience they have to help them be successful? The buyer might have a background in sales, marketing, management that can be very useful in their new role.

2. Credit Score and Debt-to-Income ratio

To be safe, a restaurant buyer should have a credit score of over 700. Yes, lower credit scores get approved, but sometimes the lender will ask for additional supporting documentation.

A debt-to-income ratio is derived by dividing the monthly debt payments by the monthly gross income. The ratio is expressed as a percentage, and lenders use it to determine how well a borrower manages monthly debts — and if a borrower can afford to repay a loan.

3. Skin in the Game

Today’s lender will ask for a range from 10%-30% down depending on the borrower and situation. Bank wants to make sure the borrower has skin in the game. EATS Restaurant Brokers recommends that buyers have at least 20% down or do not consider lending.

In some cases, the SBA lender will require the seller to carry a seller financing note up to 10%, so everyone has skin in the game, and the buyers have to bring less to the closing table.

4. Collateral 

Besides money down, the SBA lenders want some collateral attached to the loan. Collateral will not always be requested for loans under $350,000. Collateral can be described as something pledged as security for repayment of a loan, to be forfeited in a default.

Disclaimer-if a borrower has a house that is free and clear of payments and wants a loan, typically, the bank will use the personal home as collateral.

For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbrokers.com. Visit our website at www.EATSbrokers.com

Selling a Restaurant: What Documentation is needed?

When selling a restaurant, what documentation is needed from the seller? The answer is simple it depends on what type of sales transaction. Trained Restaurant Brokers use two methods when providing a Restaurant Valuation to a seller.

The most profitable and best way to sell a restaurant is based on past Profit and Loss Statements and Tax Returns. If these documentations are not available, the restaurant should be priced as an Asset Sale, meaning pennies on the dollar for the equipment and build-out.

EATS Restaurant Brokers breaks down the essential documentation needed for both types of transactions. We list the documentation that is provided during the due diligence period for the buyer:

Selling a Restaurant Business Based on Tax Returns and Profit and Loss Statements:

–         Tax Returns for the past three years

–         Profit and Loss Statements for past three years

–         Copy of Lease and all amendments

–         Sales Tax Clearance Letter

–         POS Sales Report

–         Bank Statements (sometimes)

–         Balance Sheet

–         Copy of Franchise Royalty Report

–         Equipment List (only items owned by the seller)

–         Franchise Agreement

–         Sales Tax History 

Selling a Restaurant priced as an Asset Sale:

–         Sales Tax Clearance Letter

–         Copy of Lease and all amendments

–         Equipment List

–         Limited Profit and Loss information

–         Sales Tax History (sometimes)

–         Bank Statements (sometimes)

Providing documentation for a successful and profitable business net the seller the highest asking price, can qualify for a restaurant for bank lending and attracts more buyers. Asset Sale is harder to sell and makes the Restaurant Broker work for their commission.

Asset Sale can be a challenging sale because you sell the opportunity or potential to a new buyer. You can tell when a restaurant is listed as an Asset Sale because Cash Flow and EBITDA will be low or nonexistent.

EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a restaurant’s overall financial performance.

Dominique Maddox of EATS Restaurant Brokers says, “selling a restaurant business has two phases for a restaurant owner. First providing the documents needed for a valuation. Second, providing more detailed supporting documentation during the buyer’s due diligence period”.

Some restaurant owners can be frustrated and think they provided enough financial information during the valuation phase for buyers to confirm their numbers. This thinking is usually incorrect, and most buyers will ask and want to see more additional supporting documentation before arriving at the closing table.

For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbrokers.com. Visit our website at www.EATSbrokers.com

Why You Can’t Sell Your Sell Restaurant?

Have you ever wondered why you can’t sell your restaurant? It’s a fact only about 30%-40% of restaurants for sale listed under 1 million dollars will transfer to new buyers via a sales transaction.

Buying an existing restaurant for sale can be a quick approach to become a restaurant owner. This approach eliminates some of the difficulties of starting a new restaurant.

Today restaurant for sale market is unique and selective compared to the number of restaurant listings for sale last year before the Covid pandemic. Some states have seen the number of restaurant listings for sale decreased by 20%-40% or more.

Unlike the residential market, where it’s a seller’s market, it’s a buyer’s market in the restaurant brokerage industry. The number of buyers in the market looking for restaurants for sale far outnumbers the number of sellers willing or able to sell.

There is an old saying In the Restaurant Brokerage Industry of “there are no bad restaurant listings for sale; they are just not priced correctly.”

Selling a restaurant can be a process that takes 6-9 months before a transaction is complete. Most Business Brokers or Restaurant Brokers require listing agreements of 6-12 months.

There are several reasons why a restaurant doesn’t sell;
EATS Restaurant Brokers has created a list of the most commons reasons:

1. Overpriced Listing– This is the obvious way to keep a restaurant from selling. It’s an emotional challenge for restaurant owners to put a monetary value on their restaurant. The value should be based on the Tax Returns or priced as an Asset Sale.

2. Bad Books and Records– The Tax Returns and Profit and Loss statements tell the story about a restaurant’s financial success or failures. The majority of buyers are only interested in verifiable sales numbers.

Restaurant Owners leave a lot of money on the table when they manipulate their books and records to pay the IRS less in taxes. This approach hurts when it’s time to sell the restaurant and impress the buyers.

3. Lease Terms– In some cases, the lease terms can make the restaurant more attractive or less attractive to new buyers. A majority of restaurants for sale under 1 million dollars will involve a lease assignment or transfer. This means the landlord will approve the new tenant, and they will be responsible for the lease terms agreed upon by the restaurant seller.

EATS Restaurant Brokers provides-ISSUES TO CONSIDER WHEN EVALUATING A LEASE
Commercial leases can have various rent structures that can make it challenging for a restaurant owner to sell a restaurant.

-Rent Structure- can range from a Net Lease, Single Net Lease, Double Net Lease, or Triple Net Lease (NNN Lease. Landlords can also add verbiage for a percentage of sales.
-Yearly Increases
-Stipulations on Lease
-Lack of Option Years
-Landlord Financial Requirements
-Common Area Maintenance(CAMS) yearly increases.
-Landlord owns the equipment

4.Seller unrealistic with listing– Today’s restaurant sellers have to be realistic when it comes to the resale market. Some restaurant owners expect their restaurant to be sold in a month. Some restaurant owners want to price their restaurant at 4x-5x earnings.

Today’s restaurant owners that want to sell have to be willing to negotiate and be flexible.

5. Lack of Financing-All restaurants for sale do not qualify for bank lending, and a majority of buyers can’t pay a 100% cash price.

It’s a known fact that restaurant owners that offer owner financing get a higher asking price from a buyer. This option does come with a certain amount of risk for a restaurant owner, but it does allow more buyers to qualify financially.

For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbrokers.com. Visit our website at www.EATSbrokers.com.

Why Do Restaurant Sales Transactions fall apart?

Restaurant Sales Transactions fall apart for a collection of reasons. Some of these issues can be resolved before they derail a deal from closing, but several problems are discovered along the way.

Once the restaurant seller and buyer have agreed to terms and signed an Asset Purchase Agreement, the due diligence period will start, and the buyer will deposit $10,000-$30,000 in escrow with a closing attorney. The due diligence period for a buyer is similar to a monopoly get-out-of-jail-free card. This gives the buyer the right to cancel the agreement for any reason and get their 100% escrow deposit back.

Due diligence on a main street restaurant sales transaction usually ranges from 10-30 days.

A main street restaurant can be described as a business that:

• Have less than $3 million in sales revenue.
• Have a restaurant valuation of $1 million or less.
• Have adjusted earnings or EBITDA of $1 million or less.

Dominique Maddox, a Restaurant Broker and Founder of EATS Restaurant Brokers says, “I can handle the lion’s share of the problems if I know about them at the start of the selling process.

The more information I can collect upfront can help me resolve future issues that might happen. I have been specializing in selling restaurants for over 8 years now, and I encounter new problems every day helping a buyer and seller arrive at the closing table”.

EATS Restaurant Brokers provides the Top 2 Reasons Restaurant Sales Transaction fall apart?

The Restaurant Seller does not tell the truth and is not upfront with important information.

The restaurant owners know the restaurant’s pros and cons better than anybody (or they should). The individual can be upfront with information or hold back valuable information, hoping it will not come back and hurt the deal.

When working with a restaurant brokerage, sellers are usually required to sign a listing agreement that indemnifies the Restaurant Broker from any future liens or lawsuits because they are only representing the information provided by the seller.

The biggest lies or half-truths a seller will provide will cover:

• Books and records-Profit and Loss Statements and Tax Returns
• Tax liens or UCC liens
• Kitchen equipment working status
• Partnership status
• Franchise required training
• Their current financial situation-includes monthly lease status (do they owe landlord money for back rent?)

Buyer changes mind about buying the restaurant

Owning a restaurant is a lifestyle choice that buyers have to realize before they buy a restaurant. During the diligence period, the buyer will start to poke and analyze the restaurant under a microscope. The buyer begins the buying process with tons of enthusiasm and thoughts of being a successful restaurant operator.

The buyer can easily change their mind once they start noticing errors and mistakes in the financials provided to them to analyze. Restaurant buyers will look at the kitchen equipment with a heavy microscope and detect if the restaurant kitchen equipment is outdated or not working.

The most significant issues for buyers to cancel contracts during the due diligence period:

• Books and records were not accurate
• They don’t like or trust the restaurant seller
• Can’t agree to terms with the landlord
• Can’t attend the required franchise training
• Spouse disapproves
• The restaurant lifestyle and hours are not a good fit
• Want to renegotiate the sales price and terms
• Can’t get approved for bank financing

For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbrokers.com. Visit our website at www.EATSbrokers.com.

Selling a Franchise Restaurant-Transfer Fee

When selling a franchise restaurant, how much is the Franchise Transfer fee? This question is one of the first questions EATS Restaurant Brokers wants to know from franchisees interested in selling a franchise restaurant. Franchises have various Franchise Fees, but one fee is significant for reselling a restaurant, and it’s the Franchise Transfer Fee.

The most common Franchise Fee is the Initial Franchise Fee paid by the franchisee to the Franchisor. The initial fee is a one-time payment for the right to operate as a franchisee. This fee is typically paid at the time of the signing of the Franchise Disclosure Document (FDD).

Initial franchise fees can range from $10,000-$75,000, depending on the Franchise Restaurant Brand. Generally, franchise transfer fees are 50% of the initial franchise fee.

Potential franchisees are usually aware of becoming a franchisee they will be required to pay royalty fees, marketing fees, renewal fees, advertising fees but are unaware of the transfer fee.

Who pays the Franchise Transfer Fee can be negotiated between the restaurant seller and the potential buyer. Restaurant sellers naturally want the buyer to pay the transfer fee, and our company agrees, but why do we agree?

EATS Restaurant Brokers- Franchise Business Consultants explains why the buyer should pay the Transfer Fee:

• The buyer is paying for the Franchisor’s required training before a sales transaction can be complete. The new franchisee is required to train for 2-6 weeks, depending on the franchise brand.
• Sellers are commonly required to pay for restaurant upgrades before a Franchise Restaurant can be sold to bring the restaurant up to current franchise specs. This can include equipment upgrades, signage upgrades, POS sales system upgrades, new chairs, new tables, and other required upgrades.
• Restaurant upgrades cost to a seller can range from $5,000-$100,000. The buyer benefits from the upgrades.
• The buyer received the right to operate as a franchisee under the previous owners remaining franchise term years on the original FDD.
• The franchise fee is separate from the sales price. The restaurant seller does not benefit from the franchise transfer fee.
• The restaurant is turn-key for the new buyer.
• The buyer is usually paying half the fee of the initial franchise fee restaurant seller paid to have the franchise’s rights.

Visit our website at www.EATSbrokers.com for more information on selling or buying a restaurant. We are in the business of selling restaurants!

Who pays for closing attorney fees for restaurant sale?

Who pays for closing attorney fees for a restaurant sale, who does the lawyer actually represent? Once the buyer-seller has agreed to a purchase price, next, it’s time to open escrow and hire a closing attorney.

The closing attorney represents the buyer, and it’s the buyer’s expense to pay at the closing table. Most transactions only have a buyer closing attorney; occasionally, a seller will hire its own closing attorney.

Closing Attorney Fees for Restaurant Sales can differ from attorney to attorney. Unlike residential real estate transactions, restaurant buyers don’t need a closing attorney for the sales transaction to close, but it’s highly recommended.

What does a closing attorney actually do for the transactions? The closing attorney will provide a Bill of Sale, Non-compete agreements, settlement statements, and disburse closing funds to all parties.

Dominique Maddox, a Restaurant Broker and Founder of EATS Restaurant Brokers, says, “closing attorneys can be an asset or liability in a sales transaction. We always recommend closing attorneys that specialize in a business transaction rather than residential transactions.

The worst case I have experienced is dealing with a non-experienced attorney in Texas who was friends with the buyer. The buyer hired her “friend,” and he didn’t know what he was doing; he was actually learning on the job. He charged her $7,500 for a task that should have cost $1500-$2000”.

Closing attorney fees can fluctuate; find below three Attorneys EATS Restaurant Brokers recommends to clients for restaurant sales transactions and how the prices can differ.

Attorney #1

Base Closing: $1000-If cash transaction and includes a bill of sale, indemnifications, non-compete agreement, settlement statements, disbursements (wife fees included)

Base Closing with an institutional lender: $2000 includes all the above and dealing with lender requirements.

Seller Financing Docs: $350

Seller Wire $25

Lien Search: Cost but is included in the Base Closing fee

Draft Escrow Agreement: $350

Attorney #2

Base Closing $1200- If cash transaction and includes a bill of sale, indemnifications, non-compete agreement, settlement statements, disbursements (wife fees included)

Seller Financing Docs $400

Non-compete agreements-$200.

Lien Search $275-included in base closing.

Base Closing – All Cash (includes Bill of Sale, indemnifications,

Non-Competition Agreement, Settlement Statement and disbursements) $1,400

Closing Attorney #3

Base Closing – w/Seller Financing Documents $1,900

Base Closing – w/Traditional Loan $2,500

Base Closing – w/Small Business Administration Financing $3,500

Lien Search (the business name for UCCs and up to 2 individuals) $200

Escrow Agreement $350

Escrow Service Only $525

Mail Away Service $100

EATS Restaurant Brokers advice for using a Closing Attorney:

• Use a business attorney who commonly closes business transactions. Confirm your transaction will not be the 1st restaurant sales transaction they have completed.
• Agree on price and terms upfront for the restaurant sales transactions. Do not let the attorney charge you an hourly rate.
• Use the Restaurant Brokers Asset Purchase Agreement and have an attorney review. Do not ask the attorney to draft an agreement. This can be expensive, and some attorneys charge by the hour.

A closing attorney can be an asset or liability. It’s highly recommended to use a closing attorney for all restaurant sales transactions. If you don’t have a closing attorney, your restaurant broker should be able to recommend a good one.

Visit our website at www.EATSbrokers.com for more information on selling or buying a restaurant.