Advice for Buying a Restaurant and Selling a Restaurant

Report Shows Industry Sales Improving Slightly -- Restaurant Brokers Weigh In

Posted by Robin Gagnon on Jul 21, 2017 12:41:11 PM

Recent headlines about the restaurant industry, in particular the fast casual segment, have not been pretty.  In all, national results have unfortunately, been in a slump for the past six quarters.  June finally saw a turnaround according to the latest report from TDn2K's Restaurant Industry Snapshot.  

The Restaurant Industry Snapshot report show that  June's sales and traffic growth were the best monthly performance since January, and the second quarter of 2017 posted the best results since the second quarter of 2016.  What's causing the change?  For one thing, we're beginning to anniversary a prior year bad performance.  That means we're posting better numbers against a weak 2016.  In the restaurant broker’s opinion, we’re also seeing operators confront lagging sales and lower traffic counts and work to improve both. 

Crowd final.jpgOwners and operators are working hard to both improve traffic and raise sales by focusing on getting outside the four walls of the restaurant.  Many more stores are opting for multiple delivery options. They aren’t delivering their own food any longer and they now use multiple services to get more meals out the door.  Their opinion is that if the business won't come to them, they will make sure the food can get to the homes.  The restaurant brokers are also seeing a stronger push for catering, another way to get sales ringing on the POS system.  

We are also seeing a large increase in the use of promotional efforts ranging from charitable tie-ins, social media contests, limited time offers, couponing and more.  Is it working?  When traffic grows, we'll say for sure this is working.  According to the latest report, traffic declined by 3.1 percent in the second quarter, a 0.6 percent improvement from the first quarter. Overall, same-store sales fell 1 percent in June and in Q2 2017, compared to a first-quarter same-store sales drop of 1.6 percent. 

The fact that average guest checks grew 2.2 percent increase over last year also signals an attention to training and detail in house.  We are not seeing wholesale price increases so up selling the menu and putting higher prices on specials is paying off as guest checks creep up.  According to the report, check averages have been growing slowly since 2015, when average checks rose by 2.8 percent.

Overall, in keeping with many of the articles we’ve been reading, fast casual was the weakest-performing segment in the second quarter.  There is definitely an overpopulation of this style dining and we see even more thinning of concepts and chains still shedding units over the next 24 – 36 months.

On an interesting note, fine dining and upscale casual were the two segments with positive sales in the second quarter, and have been the best performing segments this year.  Does that mean the customer is ready to go back to full service?  It may only signify they are having fast casual delivered through one of the concepts like UberEats or Zifty and when they choose to dine out, they want a full service experience.

Overall, the quality of the experience at the store level will commit the customer to the concept and keep them coming back.  There is significant competition for the food dollar but the consumer share of dollar eaten out of the house has been rising for years and that trend shows no sign of slowing down.  Operators may need to be more creative in order to keep market share in a crowded field.

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Topics: buying a restaurant, selling a restaurant

Do Pro Athlete's Make Good Restaurant Owners?

Posted by Robin Gagnon on Jul 17, 2017 12:12:58 PM

It seems you can’t read an issue of Franchise Times without learning of an athlete who’s invested in the franchise restaurant industry.  The restaurant brokers have interviewed and spoken with many former national level athletes on the way to restaurant ownership.  Here’s what we learned about the parallels and pitfalls of entering the restaurant business as you head out of the professional sports arena.

What are the advantages of playing professional ball and then coming into the industry? How about money?  Professional athletes have an advantage because they bring a lot of money to the table.  What else do they bring? Let's look at the skill set from someone who’s played competitive ball.  First, they have resilience and drive.  You don’t make it to the big leagues without a refusal to fail.  How many restaurant owners will blame the economy, blame the government, blame minimum wage, blame everything but themselves instead of buckling in and having that drive and refusal to fail. 

Here’s another skill kept sharp by those in the major leagues. The ability to learn and adapt.  That’s a skill everyone needs no matter what part of your life you are in professionally or personally.  That’s especially true for restaurant owners who five years ago had a busboy taking deliveries and no social media accounts versus today’s world where you’re fighting for market share with delivery companies and your stock rises or falls with your Yelp ratings. Pro final.jpg

Another skill needed by those leaving the professional league to become restaurant owners is the ability to reinvent themselves.   The restaurant business is fluid and changing.  There are those that peg the NFL as the “Not for Long” league.  Athletes know their body is only going to last for a short period of time.  They are looking for that next investment and know they may have to reinvent themselves within 24 to 36 months.

Another reason a professional athlete’s skill’s transfer to the franchise side of the restaurant business is because they know how to run the plays.  There are plenty of parallels to the franchise restaurant industry where someone else has already put a game plan together.  They learn how to execute it at the very highest level. They practice it, they commit to it and then they do it over and over again.

And oftentimes people will feel a little bit constricted by franchise but on the other hand that kind of operational side of things can be your safety net. And the reality is some folks are just not ready to go it alone. For a professional athlete used to executing against a playbook, a restaurant franchise may be just the thing.  Buying into a franchise gives you the safety net the process.  You get great training, training, the rule book and playbook for every single element of the operation.

For many athletes, they know their name will fade away at some point. We had one athlete tell us, "You can't rely on the roar of the crowd.”  And That's true whether you operate one restaurant, 15 franchises, or many more.

Do professional athletes make good restaurant owners?  They absolutely can if they have the skills we just outlined.

Are you a professional athlete looking for franchise restaurants to buy?  Check out our inventory at this link online. 

 

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Topics: buying a restaurant, selling a restaurant

Certified Restaurant Brokers Steve and Cyndi Weinbaum On the Radio

Posted by Robin Gagnon on Jul 13, 2017 11:19:23 AM

What happens when a radio show is seeking experts on the culinary scene in Atlanta?  They reach out to the restaurant brokers! Steve and Cyndi Weinbaum of We Sell Restaurants were recent guests of Business RadioX along with Seth Gragg of Thrasher Coffee Company and Paul McKeon, CEO of Team Building with Taste, a hospitality company he co-founded in 2012.

The players assembled on the air on June 29 and shared their insight and expertise in the culinary world.  Each of the guests, including husband and wife Restaurant Broker Team - Steve and Cyndi Weinbaum, along with McKeon and Gregg offered their take on the current business climate and their opinion on future trends.  Will the pace of fast casual continue to dominate the industry or is there a return to full service?  Will space (currently at a premium in Atlanta) ever be available for the best locations (no!)? 

The full radio interview can be downloaded live at this link.  

The group, pictured below included Paul McKeon, the CEO of Team Building with Taste, a hospitality company he co-founded in 2012. McKeon and his team have merged their love of food with their business experience building and running high performance sales and marketing teams. With custom team building kitchens in Atlanta and Dallas, Team Building with Taste has become the preeminent culinary team building program in the U.S. To learn more about Team Building with Taste, you can visit their website. You can also follow them on LinkedIn, Twitter and Facebook.

Seth Greg parlayed his love of coffee into his role as VP of Business Development with Thrasher Coffee Company where he uses an extensive background in sales and operational management. Seth has been instrumental in the growth of Thrasher Coffee Company.  The firm specializes in roasting responsibly-harvested beans and supplying premium, fresh, small-batch coffee.  Their discerning customers are seeking the experience at an affordable price and the firm says they, "offer one-of-a-kind roasts backed by an unparalleled commitment to quality and service."

Steve and Cyndi Weinbaum are a husband and wife team who put customer committment first in representing buyers and sellers for restaurants in the We Sell Restaurants database. 

 

CulinaryAtlanta2017.06.16-768x432.jpgSteve is a licensed real estate salesperson and Certified Business Broker. He has over 25 years of experience working with retail, dining, and financial industry leaders with a focus on Marketing, Business Analysis, and Relationship Management. The importance of establishing open and honest rapport with all his clients is, and will continue to be, paramount.

Steve has the ability to quickly and accurately review and evaluate financial data. This skill enables him to provide sound valuation feedback and business guidance. He has years of experience negotiating complex business to business contracts. Steve worked with most of the major Casual Dining and Quick Serve Franchise brands to help grow sales and customer engagement.

As a Certified Restaurant Broker, Steve is closing an average of two businesses per month and is skilled in complex lease negotiations.

Cyndi is a licensed Real Estate Agent who has been representing Buyers and Sellers for over a decade. And while her experience has been primarily in the residential market, both resells and new construction, her ability to negotiate complex contracts and perform valuation analysis also serves the commercial real estate and business community.

She is a certified negotiation specialist and has attended many workshops and seminars on sales and marketing and is a lifetime member of the Million Dollar Club. She has also received instruction and testing leading to designation as a Certified Restaurant Broker.

Cyndi sharpened her negotiating and business analysis skills as a buyer for Macy’s where she collaborated on multifaceted deals in order to maximize return and further developing her ability to quickly and accurately review financial data to evaluate value and drive sales.

As a Restaurant Broker, Cyndi is now working with restaurant owners to accurately value, market and sell their restaurants for maximum value. She is also helping buyers identify the right business opportunity based on their financial goals and objectives. You can follow them both on LinkedIn, Twitter and Facebook.

Click to download the full 50 minute video at this link to hear the entire interview. 

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Topics: buying a restaurant, selling a restaurant

Top 10 Restaurants for Sale in June 2017 by the Restaurant Brokers

Posted by Robin Gagnon on Jul 10, 2017 4:10:58 PM


Summer is heating up across the country.  At We Sell Restaurants we have seen some red hot listings that are sizzling with our buyerswho are clicking and calling to learn more.  These HOT restaurant for sale opportunities make the Restaurant Broker's Top 10 most active listings for the month.  

Number one on the list is a low price restaurant for sale opportunity in Roswell, Georgia.  Fully equipped, this one has low rent and can stay the same or convert to virtually any concept.  Full chef's kitchen and long term lease opportunity at rock bottom pricing.  This is a great opportunity for any restaurant entrepreneur

Listing ID:5486 Restaurant Broker Dominique Maddox    
Restaurant for Sale in Roswell with low rent. Can Convert to Any Concept
Lease: Expires October 31, 2018 + 3 year option
Monthly Rent: $2800
Inside Sq. Ft. 1800
Outside Sq. Ft.
Price:$59,995
City:Roswell

Dominique Maddox
(404) 993-4448

Austin Texas has the greatest velocity of virtually any restaurant for sale listings with high levels of interest and some of the shortest days on market efore selling.  This low price bar for sale opportunity priced at under $35,000 got buyers calling, clicking and inquirying.  This Unique concept in Austin, Texas has seen lots of action in the short time it has been on the market. Austin is the perfect place to own a quint market and cafe combo.

Listing ID:5469 Restaurant Broker Dave Duce    
Bar for Sale in Austin Serving Beer & Wine - Expand to Craft Beer & More
Lease: expires Nov 2020 + 5 yr option
Monthly Rent: $1850
Inside Sq. Ft. 737
Outside Sq. Ft. 60
Price:$35,000
City:Austin

Dave Duce
(512) 773-5272

The Austin market is on fire in the hot summer days as they headline the Top 10 list.  They had three out of the top four slots in Restuarant Brokers Top 10 list this month. On the market for less than 30 days, this one has high cash flow for an owner operator and low rent.  That make sthis sub shopw for sale in Austin Texas a winning opportunity and it's priced to move.  

Listing ID:5538 Restaurant Broker Dave Duce    
Sub Shop for Sale - Renowned Local Austin Location
Lease: negotiable
Monthly Rent: $2458
Inside Sq. Ft. 1000
Outside Sq. Ft.
Price:$125,000
City:Austin

Dave Duce
(512) 773-5272

Continuing with the red hot Austin Texas market, this Bistro restaurant for sale with six figure earnings was also red hot for the month.  The price was recently reduced and the restaurant brokers are expecting offers any day!  

Listing ID:4988 Restaurant Broker Dave Duce    
Established Bistro restaurant for sale in Austin - $115,000 cash flow in 2015!
Lease: expires July 2018 + 5 yr option
Monthly Rent: $4885
Inside Sq. Ft. 1824
Outside Sq. Ft. 800
Price:$199,999
City:Austin

Dave Duce
(512) 773-5272

Florida sure is HOT in the month of June, but that is not stopping buyers from want to know more about this bar for sale in Fort Lauderdale.  Currently operated as a tap room that features live music and a small menu, but can be easily converted to any concept. Priced to move, the plentiful of buyers are looking to move it off the market.

Listing ID:5530 Restaurant Broker Robert Morrison    
Bar for Sale in Fort Lauderdale Priced to Move! Features Live Music
Lease: One Year Remaining + Two 5 yr options
Monthly Rent: $2703
Inside Sq. Ft. 2000
Outside Sq. Ft.
Price:$75,900
City:Fort Lauderdale

Robert Morrison
(917) 499-5137

A second sub shop for slae in Austin also brought lots of buyers to the table.  This location has been open in the Austin Texas market for over 23 years.  An owner that operates this location every day will take home around $65,000 and it's priced to move quickly.  With limited hours, this sub shop for sale location, like many other Austin locations are moving quickly.

Listing ID:5540 Restaurant Broker Dave Duce    
Sub Shop for Sale in Austin Established over Two Decades
Lease: negotiable
Monthly Rent: $1925
Inside Sq. Ft. 1100
Outside Sq. Ft.
Price:$95,000
City:Austin

Dave Duce
(512) 773-5272

Location, Location, Location! That is what everyone is looking at in this restaurant for sale. Located in Smyrna, Georgia near the New Braves Stadium this location comes with plenty of parking for patrons. Keep the current concept or make it yours!  Buyers are clicking and calling the restaurant broker to find out more about what the can do to scoop up this location.

Listing ID:5472 Restaurant Broker Eric Gagnon    
Home Run Restaurant for Sale Nearby New Braves Stadium
Lease: 36 Month till Nov 2018
Monthly Rent: $5687.18
Inside Sq. Ft. 2924
Outside Sq. Ft.
Price:$125,000
City:Smyrna

Eric Gagnon
(404) 800-6704

Franchise opportunities for sale in the Atlanta Metro market always drive traffic  to our website and this location offered by Restaurant Broker Cyndi Weinbaum is no excepction.  Open and opertating, this business opportunity is turnkey.  Don't buy a franchise brand and start from scratch when you can buy a unit already up and going.   This franchise for sale is qualified for an E2 visa and ready for a new owner.  

Listing ID:5535 Restaurant Broker Cyndi Weinbaum    
Restaurant Franchise Opportunity in Metro Atlanta -- Established -Profitable
Lease: 3 Years, with option to renew
Monthly Rent: $$3015 including CAMS
Inside Sq. Ft. 1500
Outside Sq. Ft.
Price:$159,900


Cyndi Weinbaum
(770) 851-5194

Buyers took advatange of their slice of the pie by already putting this Austin, Texas listings into contract! On the market for less than 60 days and soon it will be heading to the closing table. The common theme this month is that Austin restaurant for sale opportunities are burining it up in the hot summer heat!  

Listing ID:5236 Restaurant Broker Dave Duce    
Turn-Key Pizza Business for Sale in Austin Texas Market - Great Rent!
Lease: expires March 2018 + 5 yr option
Monthly Rent: $3000
Inside Sq. Ft. 1440
Outside Sq. Ft.
Price:$43,000
City:Hutto

Dave Duce
(512) 773-5272

Bar are a way for some to cool down on those HOT summer days. Add some profit and a great location and buyers are pouring in to find out more about this Sport Bar in Georgia earning over $200,000. Get into this profiatble location before the fall bar season really picks up.

Listing ID:5445 Restaurant Broker Steve Weinbaum    
Sports Bar for Sale - Highly Profitable Location has been Open 15 Years!
Lease: 4 years + 5 year option remain
Monthly Rent: $70000
Inside Sq. Ft. 7000
Outside Sq. Ft. 1600
Price:$499,000


Steve Weinbaum
(770) 714-4552

The summer will keep heating up and buyers are flocking in to see these Top 10 restaurant for sale opportunities.  The Hottest markets are Texas and Georgia.  While the temperatures are still going up, the market is too. 

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Topics: buying a restaurant, selling a restaurant

Time & Money - The Two Ways Attorneys Kill Deals to Buy Restaurants

Posted by Robin Gagnon on Jul 6, 2017 10:00:00 AM

kill deals.jpgA recent transaction for buying a restaurant reminded me of the two ways that we see deals most frequently fall apart.  Here's a hint -- it's just like all the TV shows where  the criminals stop talking once they "lawyer up".  The restaurant brokers see deals to buy a restaurant hit the same impasse when attorneys enter into the equation.

Time

The first killer technique of attorneys is time.  The time between offer and acceptance is the most critical part of the negotiation.  Attorneys that draw out deals while they draft the perfect contract blow them up

In one recent transaction, a standard purchase contract provided by We Sell Restaurants (which has been subject to lots of scrutiny in the hundreds of deals where it's been used) went into review with a buyer and seller who both had an attorney.  Two months later, the only progress on the deal was that the two attorneys billed their clients over $8000 and nothing was inked.

Here's how the transaction began. 

A very experienced restaurant operator started talking with the restaurant brokers about buying a franchise restaurant in Chicago. Paperwork was signed and he provided us with bank statements showing he had sufficient liquid assets to both qualify for the franchise approval and meet the equity requirement for SBA lending.

For the next six days the restaurant brokers set up meetings between the clients, forwarded financial materials and negotiated the deal terms.  After the first meeting, buyer and seller were happy.  Both parties were in agreement on the price, the closing date and most deal terms.  This restaurant broker prepared the purchase contract and that's when things went sideways. 

The seller decided his attorney needed to review the contract.  This is a very common request and should have been relatively painless, except it wasn't.  The seller's attorney demanded proof of funds and a resume on the buyer.  We sent the materials to the attorney with a caveat that the buyer's bank account information was for his eyes only and not to be forwarded.

At this point, the wheels came off as the attorney began having an email meltdown stating he was not willing to "hide things" from his client. We courteously advised him he wasn't asked to "hide" anything but simply to treat the information securely and not forward via a free email service or otherwise expose the client's private financial data to disclosure.  

Money

The second way that lawyers kill deals is with money and the charges they hit clients for while deals spin sideways. 

Returning to my earlier story, I should have realized this deal was going to remain off the rails based on the initial reaction of the attorney but I'm an optimist -- what can I say?  I worked to move this forward. The attorney for the seller then began to advise his client on a number of matters directly related to the transaction (such as calling the franchise and calling the landlord). Are these typicaly attorney functions?  Absolutely not. What's the cost of that effort?  Roughly $250 - $400 an hour to blow up a deal.  The restaurant brokers would normally do this as part of their process. 

Ultimately, as expected, this deal blew up.  The unfortunate part of the story is that both the buyer and seller were motivated to make this happen but their attorneys, in their efforts to protect them (or if I'm being cynical - charge them) led to total deal killing destruction.  The fee for both parties topped out at over $8000 with no deal ever inked.   The only money made in the transaction was by the law firms. 

Are the restaurant brokers telling you not to use an attorney?  Absolutely not.  Hire an attorney but here are some tips to be sure they don't waste both your time and your money. 

Tips for Using an Attorney

  1. Agree on deal terms before engaging with an attorney.  They aren't negotiators.  They capture deals, they don't make deals. 
  2. Use a business attorney who commmonly closes business transactions.  There are different skills  used by Uncle Louie the lawyer who wrote your will and a business attorney who closes deals for a living.
  3. Don't "over-lawyer."  For most deals under seven figures you do not need the largest (most expensive) law firm in town.  This is basic business law.  They should specialize in transactions however.  You don't want them learning on your dime.  
  4. Where possible, start with a purchase contract from your broker so the lawyer is not building from scratch. 
  5. Don't expand the attorney's reach.  They should not be (in most cases), working with your franchise, your landlord and other third parties.  Your restaurant broker should be.  The only exception to this is a landlord that is dragging his feet on an assignment. 

We are not saying it's not a good idea to use an attorney.  We just recommend you manage them so they don't waste both your time and your money. 

 

Topics: buying a restaurant, selling a restaurant

Ready for your Own Independence?  5 Reasons the Timing is Right to Buy a Business

Posted by Robin Gagnon on Jul 3, 2017 11:10:16 AM

As the nation celebrates Independence Day in America, it could not be a better time to reflect on individual independence and what that means to each of us.  The restaurant brokers come from a long line of entrepreneurs. Breaking with that tradition, we did many years in the corporate world but found that owning a business was always the siren call, not the corner office.  Like many Americans, we wanted the chance to call the shots with our unique brand of independence and know that fail or succeed, the buck stopped here.  That's why we both left large companies to found We Sell Restaurants.  Seventeen years later, we’re thrilled with the decision.

It's uniquely American to celebrate our independence and also to seek control over our own circumstances with something we call our own.  In looking at the history of our country, the Homestead Act of 1862 can be seen as the earliest catalyst to lighting the flames of financial independence and entrepreneurship.  Under the act, any citizen could appy for 160 acres after filing a $10 fee for the land.  Then they had to start living there within 6 months and within five years the land was his for just $1.25 per acre. Then President-elect Abraham Lincoln said the act was necessary, "so that every man should have the means and opportunity of benefiting his condition.”  The idea worked and countless individuals began homesteading across the country, working the land and building their own small businesses capable of feeding, clothing and sheltering their families. 

4th of july.jpg

Here are five reasons we think the timing hasn't been as positive since way back when the Homestead Act brought everyone into land ownership to take matters into your own hands and buy a business.  It seems that 2017 may be the best chance since the Homestead Act of 1862 to follow your instincts and seek your own financial independence.  

Reason 1:  Stock Market Performance

stock market.png

If a picture is worth a thousand words, this picture of the rise in the stock market for the last year should spell out reason number one.  The gains in the market have almost everyone looking at a pretty healthy 401K. Since many business starts are financed through tax free rollover of a 401K plan, taking part of those gains and reinvesting them in your own business may be a smart strategy.   

Who knows how long this trend will last but for now, a stock market that's posting wins and a trend line like this one are reason number to signal the right timing for buying a restaurant opportunity.

Reason 2:  Economic Optimisim Soaring

Americans believe we’re on the right path.  The latest CNBC All American Survey posted the highest rating for America's optimism in survey’s 10-year history.  They found that 30 percent of the public are both optimistic about the economy now and for the future, the second quarter in a row that present-future optimism scored so high. 

  • 44% say wages will rise
  • Homeowner optimism is off the charts – 54% say value of home will rise versus 38% in September
  • Investor optimism – 44% say now is a good time to invest

In the survey prior to the election, 30 percent gave the economy a poor rating–a result largely consistent with those throughout the Obama administration. In the latest results, just 16 percent give the economy a poor rating.

Reason 3:  US Business Confidence Highest in 8 Years

US consumer confidence spiked to a 16-year high in March, according to the Conference Board's monthly survey. 

The headline index jumped to 125.6, the highest since December 2000. Economists had forecast that the index dipped in March to 114.0 from a 15-year high of 114.8, according to Bloomberg. 

Consumers were more positive about the labor market and economic conditions. The share of people who expected jobs to be plentiful also jumped to a 16-year high.

Reason 4:  Lending 

The lenders working with the restaurant brokers are willing, ready and able to fund deals today!  That's a big change over just a few short years ago when any restaurant submitted for lending was a reason for most banks to run and hide.  There is plenty of money out there to fund investments in a business of your own. We are being approached daily to add new lenders to our robust list of resources for funding a restaurant purchase.

Reason 5:  

Morning Consult and the International Franchise Association released a survey a few short days ago.  In that survey 67% of franchise owners and potential buyers are likely or more likely to invest compared to six months ago. By a two to one margin, franchise owners and potential buyers say the economy is improving.  52% of current franchise owners say the economy is improving.  That means there will be more people seeking the business opportunities on the market so don't drag your feet too long.

It's true that the deal of 1862 for 160 acres at $1.25 an acre can't be found today but these five reasons and many great business opportuntiies for sale indicate the timing is right to let freedom ring!  Happy Independence Day!

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Topics: buying a restaurant

Firehouse Subs Franchises for Sale are Hot Opportunities!  Why Should You Buy One?

Posted by Robin Gagnon on Jun 29, 2017 1:45:38 PM

Have you heard about the HOT Franchise Restaurant Brand -- Firehouse Subs? As a leader in the fast casual sandwich industry, the demand for their uniquely-prepared Specialty Subs is blazing a trail across the country, opening up fast casual food opportunities in new and existing markets.  They currently have over a thousand happy operators in over 44 states.  Every once in a while, someone chooses to retire, a partnership changes or for other reasons, someone decides to sell.  That's when they call the Restaurant Brokers at We Sell Restaurants.

We are excited to represent these franchise opportunties for sale.  In 2017 alone, Firehouse Subs has earned 6 different awards for being a top chain.95461-FH_Subs.jpg

Founded in 1994 in Jacksonville, Florida by former firefighting brothers Robin and Chris Sorensen. Firehouse Subs is famous for serving medium and large specialty subs with premium meats and cheeses steamed hot with generous portions on a toasted sub roll, served “Fully Involved®” with fresh produce and condiments. The concept takes inspiration from the Sorensen family’s decades of combined fire and police service.

In 2005, Chris and Robin Sorensen created the Firehouse Subs Public Safety Foundation® with the mission of providing funding, life-saving equipment and educational opportunities to first-responders and public safety organizations. Since its inception, Firehouse Subs and its customers have donated more than $24 million in 46 states, Puerto Rico and in Canada through Firehouse Subs Public Safety Foundation of Canada.

Firehouse Subs first attempted franchising in 1995. Soon after, the founders decided to pull back on the idea, eventually buying back those franchised locations in the coming years. Instead, they chose to focus on operating company-owned stores only, especially in the Jacksonville market putting franchising on the back burner. In 1998, Firehouse Subs surpassed 10 restaurants, and later that year opened the first location outside of Florida. By 2000 franchising became a topic of conversation once more. This time, the founders decided to take a different approach, using consultants to plan franchise growth. Due to the founders’ frugality and business operations, they were able to set up financing for potential franchisees. The second wave of franchising began in 2001. By 2002, Firehouse Subs was opening its 50th restaurant. A year later in 2003, Firehouse Subs hit another milestone, opening the 100th restaurant. As the 2000s continued, so did Firehouse Subs’ growth. By 2012 the company had opened its 500th restaurant, closing out the year with nearly 600 and in July 2016, Firehouse Subs opened its 1,000th restaurant.

If you are looking for a franchise restaurant brand that believes in both their operators and their communities, check out the listings below from the Restaurant Brokers at We Sell Restaurants.   

 
 
Listing ID:5433 Restaurant Broker Robin Gagnon    
Firehouse Sub Franchise for Sale - 6 Figure Earnings
Lease: 10 years From Jan 2015
Monthly Rent: $4210
Inside Sq. Ft. 2200
Outside Sq. Ft.
Price:$349,500


Robin Gagnon
(404) 800-6701

Listing ID:5509 Restaurant Broker Dominique Maddox    
Firehouse Subs Franchise for Sale in Louisville - High Volume Store!
Lease: Expires March 2019 + 2-5 year options
Monthly Rent: $5200
Inside Sq. Ft. 2000
Outside Sq. Ft.
Price:$175,000
City:Louisville

Dominique Maddox
(404) 993-4448

Listing ID:5434 Restaurant Broker Robin Gagnon    
Firehouse Subs Franchise for Sale is a Hot Opportunity for Owner Operator
Lease: New Lease Term to be Negotiated
Monthly Rent: $8953.02
Inside Sq. Ft. 2400
Outside Sq. Ft.
Price:$150,000


Robin Gagnon
(404) 800-6701

 Looking for a franchise restaurant  brand that makes a difference?  Don't look any further than these franchise opportunities for sale.  In a fast casual industry with plenty of competitors, this one outperforms others by turning visitors into into loyal customers. They know their customers want both quality food and fast service.  They adapt and change based on consumer demand.   This brand has been recognized through the industry with the following awards:  :

·        #1 America’s Favorite Chain for “Top 5 Brands Overall” – Restaurant Business

·        #1 America’s Most Loved Fast Food Restaurant – Business Insider

·        #1 America’s Favorite Sandwich Chain – Market Force

 

 

 

 

Topics: buying a restaurant

Restaurant Franchise Sales Growing -- New Deals Announced!

Posted by Robin Gagnon on Jun 26, 2017 12:34:16 PM

The Restaurant Brokers have scoured the internet, press announcements, twitter feeds, Franchise Times and more to bring you the latest deals we've seen for franchise sales and development units.  Here's what we've found.

Church’s Chicken®  has entered into a multi-year development deal with Goalz Restaurant Group, LLC to develop 20 Church’s Chicken restaurants per year in six states. The agreement, which will affect expansion in Florida, Kentucky, Ohio, Colorado, North Carolina and South Carolina, is the largest ever with a single operator.  That's a lot of brand new franchise units in those markets and very exciting news. 

The Carolinas look to be a hotbed of recent restaurant franchise sales development.  Here's a few of the many deals announced for the state. 

Area developer Steve Alie opened his first location of Cottage Inn Pizza-and the brand's first location in Greensboro, North Carolina earlier this month.  He plans open up to five additional locations in the state within the next four years. He's also planning to sell the rights to 15 more stores to qualified franchisees throughout the Carolinas over the next decade.  

In other North Carolina development, Famous Toastery's first two franchisees have signed on for additional locations of the North Carolina-based breakfast and lunch restaurant. Jason and Michelle Serkin have committed to a total of five locations in the York County, South Carolina area, while Dean Kessel will open 10 locations across Cary, Raleigh, Asheville and Greensboro, North Carolina. Additionally, Keith and Dawn Martin agreed to open three units in Jacksonville, Florida, and David Glista will bring two locations to Colorado.  

Franchise Growth.jpgFirst Watch finalized agreements with several operators to grow their concept in North and South Carolina, Georgia, Louisiana, Mississippi, Missouri and Arkansas in more growth for the Carolinas.  

Hwy 55 Burgers, Shakes & Fries, a North Carolina-based company opened its third location in Georgia this month.  Master franchisees John Greene and Craig Smith of Southern Kitchens Restaurant Group led this charge.  Their newest restaurant is in Waycross. Greene and Smith also have Hwy 55 locations in South Carolina.

Moving from North Carolina to the Northeast, a brand new incentive program has sparked some new development of multi-unit deals for Firehouse Subs'  in the Northeast.  The brand has commited to cut franchise fees by 50 percent for any market in the Northeast, from the greater Philadelphia and New York City areas to Rhode Island and Massachusetts.  That led to a deal by Ilker Dinc and Mark Farrell to develop five restaurants each in New Jersey, and Syed Alam to agree to open three units in New York.   In addition to those deals in the northern part of the country, we also learned that Jessica Christen is on board to develop four restaurants in New Orleans along with Quinton Pruitt, who plans to open three locations in Oklahoma, and Michael Lavee, the brand's newest Canadian multi-unit franchisee, who has agreed to open two restaurants in Ontario

In other news, locations are spreading one state at a time.  Wayback Burgers  has announced that their international master franchisee has opened his first U.S. location of the better burger restaurant in Woodland, Washington, this spring.

Colorado is getting ready for a massive sugar fix!  Shipley Do-Nuts is planning to open 58 franchised units in the state, starting with Colorado in a huge deal announced last month.

Potbelly Sandwich Shop is coming to California. The Chicago, Illinois-based company signed an agreement with Sameer Bhatia to bring four shops to South Orange County over three years, marking Potbelly's entry into the Golden State.  His first location is expected to be open within a year near the towns of Irvine, Newport Beach, Laguna Beach, Walnut or Lake Forest. 

NPC announced that it has acquired 140 Wendy’s restaurants, previously operated by DavCo Restaurants, LLC, from a subsidiary of The Wendy’s Company. As part of the transaction, NPC has agreed to remodel 90 acquired restaurants in the Image Activation format by the end of 2021 and build 15 new Wendy’s restaurants by the end of 2022.

Sacramento, CA  Sacramento is about to get its first taste of Bennigan’s, the iconic brand beloved across the globe for its friendly Irish hospitality and chef-driven American fare.

Nashville, TN  Captain D’s, the leading fast casual seafood restaurant, announced its newest location in Zachary, Louisiana is officially open. Located at 5353 Main Street, the restaurant is 2,800 square feet, with drive-thru, and showcases the brand’s most recent beach design. The new restaurant has created 20-25 jobs in the Zachary community.

Bojangles' as the Southern-style restaurant franchisor announced a multi-unit development agreement with new franchisee MSR Restaurants, LLC of Mitchellville, Maryland. The deal will bring several new Bojangles' to the Washington, D.C. metro areq.

The Hurricane Grill & Wings concept in Kansas, is part of a 12-site development agreement. The first, a Hurricane Sports Grill full-service restaurant, is set to open in Wichita. Other versions of the Florida-based chain are the standard Hurricane Grill & Wings, and Hurricane BTW (burgers, tacos and wings), a smaller fast-casual concept.

Dat Dog, a New Orleans gourmet hot dog and sausage franchise with four corporate units, signed a multi-unit deal for the Houston, Texas market. The agreement with B&G Food Enterprises will bring 25 Dat Dog restaurants to the metro area over the next several years.

New York-based Carrols Restaurant Group is adding 17 Burger King locations in Maryland to its portfolio by acquiring Republic Foods. The deal will offer "a strategic entry point for us to further expand our presence in the mid-Atlantic region going forward," said Carrols CEO Daniel Accordino

Cowboy Chicken and Franchise Restaurant Concepts Group (FRC Group) announce today the signing of three new lease agreements to open restaurants in Ankeny, Iowa (802 SE Oralabor Road), Manhattan, Kansas (322 Southwind Road) and Sioux Falls, South Dakota (2700 W. 41st Street). These three restaurants are part of a franchise agreement signed earlier this year with FRC Group to open 14 Cowboy Chicken locations across Iowa, Kansas and South Dakota. There are currently 21 units of the fast casual chain in Texas, Oklahoma, Nebraska, Louisiana and Alabama.

Across the Border,  Wing Zone® has signed a major expansion deal to increase its international presence. The agreement, signed with The Philippines-based Viva International Food & Restaurants, Inc. and facilitated through JNM Dining Concepts, Wing Zone’s South Asia Master Franchise, based in Singapore, will result in the building of up to 50 new Wing Zone units across The Philippines over the next 10 years.

The growth of restaurant franchise sales and development signals a healthy industry that shows no signs of slowing down!  For franchise resale locations - open and operating franchises for sale, check out listings offered by the restaurant brokers at the link below. 

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Topics: buying a restaurant, selling a restaurant

What is the Process to Sell a Restaurant?  Here are the Steps

Posted by Ken Eisenband on Jun 23, 2017 12:21:04 PM

Are you wondering about the process for selling a restaurant?  The steps are actually very straightforward.  Here's a guide from Certified Restaurant Broker Ken Eisenband on selling your restaurant - step by step.  It's a blueprint from start to finish.  Let us know what you think.

pieces.jpgStep 1 - Preparing the Listing

Seller agrees that We Sell Restaurants has the exclusive right to sell the business at the agreed upon listing price and financing terms contained in the listing agreement.  This includes any other terms the seller agrees to.

Seller furnishes We Sell Restaurants all the necessary financial documents and data required like tax returns, lease, payroll records, etc.

We Sell Restaurants values the business by analyzing the data and in some cases, touring the facility.  A comparison to previously sold restaurants and current listings will be used to make sure we get the right listing price.  That’s critical in making sure we sell your restaurant for the most money in the shortest period of time.

Step 2 - Marketing the Listing

We Sell Restaurants will write the listing copy and search engine optimize your listing to get the greatest possible response. The listing is then email blasted to the most current database of buyers.  That buyer count now exceeds 65,000 and is growing daily. 

Step 3- Maintaining Confidentiality and Working with Buyers

We Sell Restaurants will require buyers to sign a confidentiality agreements and pre-qualify prior to releasing the name and address of the business.

The Buyer will visit the location as a secret shopper.  

We Sell Restaurants will set up a meeting with theSeller, Buyer and Broker to tour the faility and answre any questions. 

Step 4- Purchase Agreement 

We Sell Restaurants will prepare an Asset Purchase Agreement and collect the good faith deposit in escrow.  

Your restaurant broker will provide buyers with third party lending resources.

Offers will be presented by We Sell Restaurants to sellers.

Step 4- Due Diligence 

We Sell Restaurants will set up any meetings to tour the facilities and answer any questions.

Your restaurant broker will work to coordinate inspections or any other due diligence items. 

Step 5 – The Closing

For the final step, the We Sell Restaurants Certified Restaurant Broker will work with the closing agent to insure all material necessary will be provided to ensure a smooth closing for both the buyer and the seller.

All the steps taken during the process of buying and selling a restaurant run smoothly with the help of a Certified Restaurant Broker.  Are you ready to meet a broker in your area? Contact us today!   

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Topics: selling a restaurant

Franchise Buyers and Franchise Owners Excited about the Future

Posted by Robin Gagnon on Jun 19, 2017 1:07:54 PM

The International Franchise Association or IFA in conjunction with Morning Consult has released a dynamite new survey about the high level optimism in franchising.  The restaurant brokers have been seeing general research about small business optimism hitting eight year highs, but this is the first survey we’ve seen that focuses on the franchise community.

The survey was conducted online between May 22 – June 5, 2017, among a sample of self-reported franchise owners and potential franchise buyers/investors. Twenty-one percent of their sample was comprised of current franchise owners.  The results are powerful. 

The survey asked how likely prospective buyers are to invest in a business.  Three in 10 (31%) are more likely to buy or invest in a business than six months ago while 4 in 10 (36%) are as likely as before.  Combined, that means 62% of prospective buyers are as likely as or even more likely to buy business than six months ago. Since roughly 30% of all the franchise units are in the restaurant segment, that's good news for those of us selling restaurants today.  Only two in 10 (19%) are less likely.

Ready to buy-1.jpg

Those surveyed believe the economy is improving.  Fully 38% of franchise owners and potential buyers say the economy is improving while half that number (19%) believe it is not. Of the ones that own franchises today, the result is even more bullish.  52% of those who own franchises today, says the economy is improving.  Does that translate into actual spending to buy a restaurant franchise?  The We Sell Restaurants results for the first half of the year say yes.  We are seeing overall improvements in both unit counts and size of restaurants sold.

What about millennials?  The survey found younger franchise owners and potential buyers/investors show high levels of optimism. Almost half (45 percent) of 18-34 year olds report being more optimistic, while only 15 percent of this age cohort is less optimistic.

While they may be ready to buy, they also had a few things on their mind that the government could do to help.  A series of policy questions were posed for feedback.  The data indicates on a policy level that two items are on the minds of franchise owners – taxes and regulation.

Two survey items reinforce the need to a reduction in regulation.  78% said we could improve the economy and the business prospects of the respondent by “Reducing red tape to make it easier to start a business.”  75 percent of franchise owners and potential buyers believe reducing regulations on small businesses would improve the economy.

72 percent believe lowering taxes would improve the economy. 

That’s in line with what the restaurant brokers are hearing from the industry.  Eric Gagnon, President of We Sell Restaurants said, “We are seeing growth in the first half of the year and optimism by buyers, lenders and sellers.  Despite some soft restaurant sales data at the unit level, the fundamentals of owning a business have never been better and our buyer inquiries reflect that, in particular for franchise brands.”

 We Sell Restaurants is a restaurant brokerage franchise and the largest firm specialized in selling restaurants.  All listings can be found online

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Topics: selling a restaurant