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

Financing

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.