No matter what type of restaurant or food service business you’re interested in buying, our team of courteous, knowledgeble, and experienced brokers can help you. The following pages provide valuable information on the buying process and how to register online.
Here is a brief overview of the process involved in buying a restaurant.
- We update our website constantly to showcase new restaurant offerings. Look over our listings or talk with us about your business vision. Register now to become an active buyer and learn about new business opportunities as soon as we list them.
- Potential buyers should exercise due diligence in purchasing a restaurant and we explain the areas which need to be considered.
- Our firm is committed to marketing our clients’ business offerings in a professional and confidential manner. To ensure that we always meet that commitment you can read about our brokerage policies.
- Consider the lease before you buy. Seek professional advisers, experienced real estate brokers, and attorneys who can help you negotiate new property leases, if available, or assist you with a lease assignment. Read about the problems with leases which can be a major stumbling block in buying a restaurant.
- Browse through our inventory of food-service-related businesses which changes daily and find one that fits your business plan. Then register on-line with the appropriate office. We will require a personal net worth statement with your registration and a non-disclosure agreement (Confidentiality Agreement) for each restaurant inquiry before we release any confidential information.
- We act on behalf of sellers but we treat all buyers honestly and fairly and will disclose all material facts that we know about available businesses. As brokers, we cannot advise you on legal or accounting matters but we will guide you through the transaction and provide information about how to engage other professionals who can assist you.
- Before you decide between purchasing an operating restaurant or starting a new operation, investigate all your options. The option selected could determine the success or failure of the business.
- Our brokers can help qualified buyers with all the details involved in obtaining financing, including small business loans and seller financing, and educate them in our business buying system.
- Read the questions most frequently asked by buyers and see our answers based on our experience and knowledge. If you have additional questions, call us. We’ll be happy to provide you with answers.
We can help you structure a checklist to guide you through the process of buying a restaurant. We know all the details involved in purchasing a food-service business and we can also help with a “to do” list
Buying a Restaurant
Whether you retain the current concept or create a new one, you can greatly reduce your cash investment and lower your risk by purchasing an operating food-service business with an established customer base and proven cash flow. Start-up costs have been absorbed by the original owner, including:
- Architectural drawings
- Health department approvals for facility
- Alcohol law enforcement approvals
- Building standard approvals
- Leasehold improvements
- Furniture, fixtures, and equipment purchased and installed
- Menu and recipes in place
- Signage installed
A number of financing arrangements are available to buyers of restaurants and related food-service businesses. Our brokers can help qualified buyers, especially first-time buyers, sort through the details involved in obtaining financing, including small business loans and seller financing, and educate them in our business buying system.
Sales of most single-unit operations include only the assets of the restaurant, not its liabilities or food and beverage inventory. The inventory is traditionally an additional cost and is addressed outside the closing. Asset sales are structured to reduce buyer risk through contingencies of sale, which may include, but are not limited to:
- Sales and income verification
- Valid inspections and code approvals
- Working equipment
- Satisfactory lease arrangements and financing
- Non-compete and on-premise training clauses
Buyers may also expect sellers to warrant other aspects of the business, including protection against undisclosed seller debt and assurances that no regulatory or market changes that could impact the restaurant’s operations are pending.
We will, of course, provide the financial records submitted to our company by the seller. However, be aware that business owners prepare financial records to reduce taxable income. You are responsible for investigating reported sales and expenses prior to making an offer for a business.