When selling a restaurant, most restaurant owners don’t have a guide to work with buyers, so they are clueless about the restaurant resale process. Today’s buyers are more educated than ever, and many will Google the process of buying a restaurant and have a checklist of items to request.
Selling a restaurant is more than just listing on the market for sale; selling a restaurant starts before it’s listed for sale. Restaurant Brokers highly recommend that restaurant owners gather important documents before contacting a Restaurant Broker for a restaurant valuation.
EATS Broker provides the essential guide to working with buyers. The following items are documents or tasks restaurant owners should have ready to share or complete:
Lease and lease amendments – the lease is one of the most critical documents when selling or buying a restaurant. Buyers will want to know the following information.
-Monthly rent including Common Area Maintenance (CAMS)
-When the lease expires and any options to renew
-Yearly increases in rent
-Exclusivity for a restaurant concept
– Special provision including a demolition clause or repair requirement.
List of Furniture, Fixtures, and Equipment (FF&E)-Provide a list of furniture, fixtures, and equipment that belong to the owner. (Restaurant Brokers highly recommend that owners read the lease. Attachments to the building usually belong to the landlord. These items can include hood systems, walk-in coolers, HVAC systems, sinks, and others.
-All equipment should be in working condition.
-List the items that are leased
Proof of Sales and Expenses
-3 years of Tax Records
-Profit and Loss Statements
-POS Sales Reports
-Sales Tax Filings
-Food invoices
Restaurant Franchise Resales only selling a restaurant that is a franchise adds additional steps to the restaurant resale process:
-Franchise Disclosure Document (FDD)- will explain the requirements of the Franchisee and will let buyers know when the Franchise Agreement expires.
-What are the transfer fees, and who pays them?
-Where is the training done, and how long is the training
-Does the restaurant require any required upgrades before the transfer
Working with an experienced restaurant broker can help buyers and sellers navigate these steps efficiently and confidently. Let the Restaurant Brokers at EATS Broker know if you need help with your next restaurant transaction!
For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Restaurant Business Broker Dominique Maddox at 404-993-4448 or email at [email protected]. Visit our website at www.EATSbroker.com
