by Dominique MaddoxNovember 10, 2020 Buying a Restaurant, Selling a Restaurant0 comments

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 Restaurant Brokers 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 Restaurant Brokers 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 Restaurant Brokers. 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@eatsbrokers.com. Visit our website at www.EATSbrokers.com

by Dominique MaddoxJune 10, 2020 Buying a Restaurant, Selling a Restaurant0 comments

Issues for Business Brokers after Covid-19

EATS Restaurant Brokers attended the Georgia Association of Business Brokers (GABB) Spring Conference last month. The conference was to educated Business Brokers about the issues for Business Brokers conducting sales transactions after Covid-19 depending on if they represent the buyer, seller, or both.

The biggest take-away for EATS Restaurant Brokers was the different issues a Seller’s Brokers should be concerned about vs issues a Buyer’s Brokers would be concerned about.

Dominique Maddox Founder and Restaurant Broker for EATS Restaurant Brokers says, “ over my 8 years of being a Restaurant Broker I have seen a range of issues that affect deals. The majority of my deals I work in a Dual-Agency capacity, this experience has helped me understand both Seller and Buyer Broker needs and wants”.

Working with a trained professional Business Broker or Restaurant Broker can make all the difference of a deal getting closed or terminated. EATS Restaurant Brokers list some issues for Seller’s Broker vs Buyer’s Broker.

Issues for Seller’s Broker:

Terms of lease-including option years
What assets are attached to the building
Security deposit to Landlord
Security interest to Landlord
Lease-asset or liability
What lease exist
Personal guarantee
Assignment prohibition
Franchise issues

Issues for Buyer’s Broker:

Value of lease to a business
Insurance Requirements
Terms of lease-including option years
What assets are attached to the building
Security deposit to Landlord
After-sale liability
Lease-asset or liability
What leases exist including amendments
Personal guarantee
Assignment prohibition
Assignment Fee
SBA lease requirements
Franchise issues
Landlord approval requirements

Let us show you how Restaurant Brokerage is done with flavor!

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@eatsbrokers.com. Visit our website at www.EATSbrokers.com

by Dominique MaddoxJune 3, 2020 Restaurants sold, Selling a Restaurant0 comments

Dominique Maddox of EATS Restaurant Brokers Sells CANS Taqueria

Dominique Maddox of EATS Restaurant Brokers Sells CANS Taqueria located at 12635 Crabapple Rd. Milton, GA 30004

Dominique Maddox of EATS Restaurant Brokers Sells CANS Taqueria located at 12635 Crabapple Rd. Milton, GA 30004. EATS Restaurant Brokers represented buyer and seller. The buyer’s family owns the following successful restaurants in Alpharetta, Southern Porch, Mercantile Social, and Flatlands Bourbon and Bayou.

CANS Taqueria has been established since 2011, buyer plans to bring some exciting changes to the drink menu, food quality, and create a fun family environment. Plans now are to have CANS back open by mid- July.

Dominique Maddox is the founder and President of EATS Restaurant Brokers and eatsbroker.com, a business brokerage firm specializing exclusively in restaurant franchise resales, restaurants for sale, bars and nightclubs. After working with one of the nation’s largest restaurant brokerage firms for seven years, Dominique decided it was time to bring a new flavor to the Restaurant Brokerage Industry and founded EATS Restaurant Brokers.

Dominique Maddox has been selling restaurants since 2010 and has undergone intensive training in the Restaurant Brokerage Industry. Dominique attended Morehouse College on a football scholarship, he brings that same competitive spirit and energy to the field of restaurant brokerage.

EATS Restaurant Brokers are Restaurant Resale Specialists that can guide you thru the complex process of buying or selling a restaurant. EATS Restaurant Brokers is a full-service Real Estate Business Brokerage practice focused on the restaurant industry. Our company specializes in selling Restaurant Franchise Re-sales and Restaurant Sales. We also help clients with Restaurant real estate site selection, Tenant Representation, Franchise Consulting, and Business Price Evaluation.

We exclusively sell restaurants, bars and nightclubs. We are happy to answer any questions about restaurant pricing and valuations, exit strategies, bank financing or any other subjects related to the purchase or sale of a restaurant.