Advice for Buying a Restaurant and Selling a Restaurant

We Sell Restaurants Brokers Named to Georgia Association of Business Brokers Million Dollar Club

Posted by Robin Gagnon on Dec 12, 2017 10:00:00 AM

Dominique Award Pic.jpgEach year the Georgia Association of Business Brokers (GABB) highlights members who have sold at least $1 million in listings during the year.  This year, Dominique Maddox joined We Sell Restaurants President, Eric Gagnon, in this prestigious group.  

Only eighteen members of the Georgia Association of Business Brokers (GABB) were named to the 2017 Million Dollar Clubs for helping to broker the sale of small-, medium-sized and large businesses worth more than $90 million in 2017.

GABB is a professional membership organization committed to professionalism in the business brokerage industry. GABB members relentlessly pursue professional development so they can render superior, ethical services for all customers and clients.

Dominique Maddox made his first appearance in the Million Dollar Club while Eric Gagnon made a repeat appearance in the multi-million dollar club.  

Dominique graduated from Morehouse College in 2004 with a BA in Business Management. He went into the residential real estate field and after two years he was convinced he was destined for another industry.  “I have always loved the restaurant industry, and if I hadn't received a football scholarship to Morehouse College, my backup plan was to attend culinary arts school and become a chef.”

In 2010, Dominique was able to merge his two passions and became a Certified Restaurant Broker with We Sell Restaurants.  The rest is history.  In Dominique's word, "I’m very lucky to have joined a firm that gave me a chance at age 29 in an industry where most brokers are over 50.”

Dominique describes his approach to work to his role simply saying, "Every day I work like I have nothing in contract.” He added, “I took my restaurant brokerage business very seriously this year and reviewed my goals and vision board regularly to stay on course.”  When Dominique isn’t busy as a rock star restaurant broker, he enjoys fitness, traveling and sightseeing, and most of all spending time with his wife and daughter. In January 2018 his daughter, Amaya will be launching her very own shirt company, Young Minds Brand, with the entrepreneurial guidance of her father. The 11-year-old will use the proceeds from her venture to actively contribute to her 529 plan for college, and eventually law school! Talk about a family of achievers!

Eric Gagnon was also named to the 2017 list of top producers as a member of the group performing Multi-Million dollar transactions.  The co-founder and President of We Sell Restaurants, he is the past President of the Georgia Association of Business Brokers and has received the GABB Lifetime Million Dollar Club Award as well as the prestigious GABB Phoenix award for a decade of achieving million dollar status.  Business Brokerage Press first designated Mr. Gagnon as an Industry Expert over a decade ago.  In addition to GABB, Eric is a member of the International Franchise Association (IFA), the International Business Brokers Association (IBBA) and the Southeast Franchise Forum (SEFF) where he serves on the Board of Directors.  He is also a member of the Business Brokers of Florida (BBF).  Eric is licensed as a broker in Georgia, South Carolina and Florida. 

For listings from these top producing brokers in the GABB, take a look online at the nation's largest website for restaurants for sale at the link below. 

Restaurants for Sale

 

Topics: restaurant broker, buying a restaurant, selling a restaurant

Restaurant Broker & Mom Asks: Kids Meal- Who’s Choice Is It Really?

Posted by Emily Yessick on Dec 19, 2013 4:14:00 PM

When Healthful Kids Meals hit Number 4 on the National Restaurant Association “What’s Hot” list for 2014 it really got me thinking about how people, restaurant brokers included, make eating choices for their kids.  This restaurant broker grew up eating healthy, well-balanced, home cooked meals.  My mother managed to work, take care of our family and never open a box or a can for dinner.  We ate what was in season for fruits and veggies, whole grain brown rice; we even had the milkman come deliver fresh milk from the farm to our doorstep.  I can remember my mom in the summer making homemade, from scratch blackberry cobbler with blackberries we handpicked just for the pie; add some real vanilla ice cream and it doesn’t get much better!  For our family, eating fast food was a special treat, not a way of life.  Now that I have a family of my own, and life is hectic, it is up to me to use what my parents taught me about eating food that’s good for you, and pass it along. 

This past year, I ca100DaysRealFoodLogo resized 600me across a woman’s blog called 100daysofrealfood.com about her journey getting her family to make good natural food choices.  It inspired me to get back to the way I enjoy eating and create a healthier foundation for my family.  However, needless to say it was hard and as much as I hate to admit it, I failed.  Being a mother of a seven year old, its natural that in order to get a full time job, housework and all of our crazy schedules crammed into the 16 or so useable hours of the day, we tend to eat out a lot.  So when it came time to try and eat a more natural lifestyle, it was a big change that I wasn’t quite ready to make.  Maybe it wasn’t about being ready; maybe it was about not making time to change.  Cooking at home takes planning, preparation, determination and some experimenting to find what works and most importantly what doesn’t work!  

 In the last month my family has unfortunately eaten out more than ever.  Being on the road, means eating at more fast food restaurants than traditional sit-down restaurants.  Fast food restaurants have made some changes on their menus to add healthier choices such as grilled chicken, apple slices, bottled water, low-fat milk and 100% juice choices, etc.  But the next step is getting the kids (or parents) to make these choices.  In my opinion, that’s the hard part.  Part of the attraction for the kids is the toy with their meal- some of the healthier restaurants don’t offer a toy with a kids meal or it’s a less attractive toy.  Why would a youngster choose apples over fries?  Or eat grilled chicken over a cheeseburger?  Especially when there’s no toy.  Making healthy choices start at home.  When the kids see the parents making good food choices, both at home and out to eat, the kids are going to follow suit.  My seven-year-old won’t trade his burger for a grilled chicken sandwich, but I rest easy knowing he will eat foods like salmon and spinach other times.      

This next year is going to be about starting my family down a healthier food journey, hopefully with some success this time.  The other top items on the “What’s Hot” list, Locally Sourced Meat and Seafood, and Locally Grown Produce are two items I plan to incorporate to our meals as well.  If I can build a healthy foundation when it comes to food, a cheeseburger, French fries and a milkshake from time to time isn’t so bad. 

Topics: restaurant broker

Restaurant Brokers Discuss Menu Options for Sensitive Diets

Posted by Dusty Bennett on Dec 13, 2013 3:07:00 PM

On a recent radio show, Restaurant Brokers, Robin and Eric Gagnon interview two industry experts on menu development. Dr. Joy Dubost of the National Restaurant Association and Chef Scott Randolph of Food and Drink Resources tackle food allegies, calorie counts and nutritional standards in the design of today's restaurant menu.   

Kids menus surfaced as one of the top trends for 2014 in a recent survey and that is no surprise.  Sometimes one of the things that gets lost when designing a menu are the kids options.  Today more kids are experiencing food allergies and intolerances.  This makes more parents aware of what their children are consuming.  I still remember when I was a kid, and my dad would take me to the local quick service restaurant and we would get burgers, hot dogs, fries, and soda.  We were careless as kids in what we consumed, well that was many years ago and those days are over and parents have a heightened sense of awareness when it comes to what their children eat.  As a restaurant owner, you must be able to provide nutritious options for children. 

Why is it so important to have these options available for sensitive diets? Well, let’s look at an example:  Say a group of people are looking for a restaurant to stop and eat; one of the couples has a small child that has a sensitive diet.  Not having the available options on the menu to accommodate this issue could result in the lost business of multiple people, not just the individual with the sensitive diet.  Is the industry saying that if you don’t have these options you will not be successful? No.  The industry is only recommending that a restaurant owner and their staff are knowledgeable about different food allergies and intolerances to make the restaurant dining experience for sensitive diet consumers a more enjoyable one.

Dr. Dubost discusses the growing trends in restaurants offering more options that appeal to individuals that suffer from food allergies and intolerances.  As a restaurant owner, you want to have control over what items are being produced in your kitchen and how to educate your staff when they are presented questions on accommodating individuals who suffer from food intolerance.

Chef Scott Randolph offers up expertise on what kitchen staff and owners can do to get the information necessary to make their restaurants more accommodating.  You do not have to go out and hire a chef or a full-time nutritionist, but it may be good to consult these types of experts a few times a year to analyze your menu options to make sure you are knowledgeable about the most current trends.

National Restaurant Association resized 600It is also important to note that there could be legal ramifications for restaurant owners if they chose not to train their staff on food allergies and intolerances.  The Food Allergy Research and Education group (FARE) illustrate that there are more than 15 million Americans that are allergic to milk, eggs, peanuts, tree nuts, wheat, soy, fish, shellfish—the eight most common food allergens. In a recent article on the National Restaurant Association website, FARE discusses how restaurant owners can take a more active approach to educating their staff on the importance of knowing food allergies and intolerance. More information can be found here: Protect your business, customers by training staff about food allergies

The We Sell Restaurants radio show broadcasts in the nation’s seventh largest media market.  Listeners can tune in at 12 Noon EST to Atlanta’s AM Talk 920 and Sunday at 1PM on Biz 1190.  The show is also available for immediate download on iTunes. 

We Sell Restaurants is the nation’s largest restaurant brokerage firm specializing in restaurants wanted (restaurants for sale), leasing a restaurant and franchise restaurant resales.  The We Sell Restaurants brand is known nationwide for professionalism, industry knowledge and unmatched service. They can be found online at www.wesellrestaurants.com.  The firm is franchising their brand nationwide and has offices in Florida, Georgia, Colorado, Tennessee and South Carolina. 


Topics: kids menu, restaurant wanted, buying a restaurant, restaurant broker, selling a restaurant, we sell restaurants

Buying a Restaurant - It's a Jungle Out There

Posted by Robin Gagnon on Oct 14, 2013 2:07:00 PM

If you're buying a restaurant, you're quickly learning just what a jungle it can be out there. Everyone in the deal exhibits some kind of animal behavior and the king of the jungle is often the one that roars the loudest!

For the restaurant broker, it's necessary to take on the characteristics of the rhinoceros.  Why a rhinoceros? Well, these are the most thick skinned of all animals with a hide that can't be penetrated without the sharpest of spears or most piercing ammunition.  The restaurant broker has to have skin that allows the interactions between buyer, seller, landlord, franchise, attorneys, accountants and more to all roll off their back like the water at this animal's favorite watering hole. 

What about the other players in the deal?  Well, to return to our Animal Kingdom analogy, some buyers are Giraffes.  They will stick their neck when buying a restaurant.  These are the buyers that call and snap up a bargain the minute it comes on the market.  They aren't calling with fifteen pages of due diligence questions and requiring documentation on par with a billion dollar merger and acquisition.  They see the deal and act on it.

Other buyers take on the characteristics of the Shark.  They want the best possible pricing and like the popular TV show, Shark Tank, they will circle their prey and pounce with offers that are much lower than the sellers expects. 

Still other buyers will take on the flock behavior of the bird family.  A new listing comes on the market and they will bring in their family members, brothers, sisters, in-laws and other to look at the restaurant for sale and "flock" around it.  This sometimes results in a sale but more often than not, group thinking doesn't lead to decisive action. 

Other buyers take on the tortoise behavior in their approach to buying a restaurant.  This is the total opposite of the giraffe since they keep their head in and move ever so slowly in their decision making. They will ask for information for weeks about a business opportunity and finally call to say they are ready to make an offer.  Unfortunately, they sometimes learn the restaurant for sale is no longer available since the "Giraffe" already made an offer and took it off the market.  

Buyers and brokers aren't the only ones taking on the behavior of the wild kingdom.  One party to the deal, the landlord often acts like the Vulture.  The landlord or Vulture circles the dead (seller who's on the way out) in the transaction, trying to find an advantage for themself or some fresh meat (from the new buyer).  That can take the form of withholding acceptance of a new tenant without onerous burdens to the seller, refusing to release a seller from a personal guarantee or even just "stalling" a deal until a buyer loses patience and walks.  They can punish a new buyer with exacting credit requirements above and beyond the seller's demands and demand large deposits or guarantees.  The restaurant brokers have written a great deal on how a landlord is not your friend and nowhere is that animal behavior more clear than when you are selling a restaurant.  While the landlord is necessary to complete the deal, he often has no incentive to transfer a lease if the tenant in place is paying well and has good credit. 

Which buyer are you?  Is there another animal that seems closer to how you address buying a restaurant?  Remember, it can be a jungle out there when buying a restaurant!  

Restaurant wanted?  Click on this link to see our full array of restaurants for sale.  

Restaurant Wanted

Topics: buying a restaurant, restaurant broker

Selling a Restaurant for Full Value Isn't a Guessing Game

Posted by Ken Eisenband on Sep 18, 2013 4:41:00 PM

No Guessing Blog ArticleI worked for a national restaurant chain many years ago. I’ve recently noticed that I still own a couple of hundred shares of stock in this company.  The stock is currently selling at about 25 percent of what I purchased the shares for...  It’s not fair that I don’t get all of my money back.

Sound ridiculous doesn’t it? As a certified restaurant broker, I meet restaurant owners everyday who say the same thing to me in all seriousness, “I bought this restaurant 10 years ago for $200,000 and I will not take a penny less” or “It cost me $275,000 to get this place up and running last year and I deserve more than that from anyone who buys the place because I did all the work.” Sorry to be the bearer of bad new, but no one cares how much you spent to buy or open your restaurant. What matters is what it’s valued at today. Want to know what else doesn’t matter?  Purchase costs, build-out costs, future growth and previous sales don’t matter. The most important component to valuation is the owner’s benefit or how much money the owner made in the recent year. There are factors outside of profits that go into the valuation such as location, concept, and seasonality, but understand that profits are the driving force in the valuation of a restaurant.

Once an owner understands that the value of the restaurant is based on owner’s benefit, the certified restaurant broker’s job should become easier right? That is not necessarily the case. Here is an example of a comment I heard, “Sales are $800,000 per year and I take home$300,000 per year. I should be able to sell for $600,000.” Really? Do you have tax returns, profit and loss statements that back up your claim?  Remember, if you have not reported $100,000 of the $800,000 in sales and then show $200,000 in owner’s benefit your value is $400,000. Do not be upset about losing $200,000 in value because you saved $6,000 in state sales tax payments. Remember, if you get caught you could be fined and be subject to jail time.

Many of the owners who do not report all of their sales for tax payments pay some or the entire payroll “off the books.”  The most common reason to do this is to avoid paying payroll taxes and workman’s compensation insurance. Tell me, how great are your savings when one of your employees cuts themselves and has to go to the emergency room for stiches… with no insurance? Or better yet, when a former employee tries to claim unemployment wages based on the job you were paying “off the books.” The defense, “everybody does it” probably won’t work with the department of labor.

“Saving” money by not paying taxes or not buying insurance will lower the value of your restaurant when it is time to sell. It also can keep you awake at night always worrying about a possible audit or accident that could cost you so much money it will force you to close the business.

What can you do to get the full value for your restaurant (when it’s time to sell) and get a better night’s sleep while running your business? Have an accounting program, such as QuickBooks, in place. Every day, record your actual sales in this accounting program. Every check that is written for the business should be recorded in the accounting system. This program will be able to give you daily, weekly, monthly, quarterly, and yearly reports on sales, expenses, and profits with the push of a button. An added benefit is that you will control your costs on a daily basis, also adding value to the business. When you list and sell your restaurant you will have accurate numbers that will match completely with all of your tax filings. Many businesses have expenses that will go away when the owner sells. Examples would be salary and payroll taxes to owners, cell phones, health insurance, car payments, depreciation, amortization, interest on loans. You will still pay for these items through the business. Check with your accountant for ramifications. A certified restaurant broker will add back the payments that are entered in the accounting system and will adjust the owner’s benefits so that you receive maximum value for your business. You will not have to spend sleepless nights worried about slip and falls in the kitchen and payroll or IRS audits anymore.

Make no mistake about it, a restaurant with verifiable books will sell quicker and for more money than the same restaurant that has no books. An owner MUST have records to verify the owner’s claims of sales and profits.

Topics: restaurant broker, selling a restaurant

Restaurant Broker Demonstrates the Waiter Wallet From Restaurant Show

Posted by Robin Gagnon on Jun 10, 2013 3:20:00 PM


Restaurant Broker Robin Gagnon from We Sell Restaurants was intrigued by the Waiter Wallet she discovered at the National Restaurant Association Show in Chicago.  Watch as she demonstrates this new and improved way for servers to manage orders, money and more.

Waiter walletAccording to Robin Gagnon, "Here's one of the smartest things I saw at the National Restaurant Association show.  It's called the waiter wallet.  Not that nasty thing that waiters pull out of their pockets and have things falling out of it.  Instead you have a nice concise system.  All your specials go here.  You can download and customize your menu here. Put your dollars and those pesky credit cards that fall out in one place.  Smart Idea for restaurant owners."

This Waiter Wallet, according to their website is everything the restaurant broker described where they say, "No matter how organized of a waiter I was, holding everything I was challenged to carry was a tall order. Let's face it, a credit card presenter may be okay for presenting a check, but they are an organizational nightmare. Enter the Waiter Wallet™, the ultimate server book."

We agree that this is the ultimate server book and don't know why more restaurant owners aren't using this today to keep their wait staff streamlined, organized and efficient.

Here's a link to the company where you can check out ordering, costs, a video and more. 

Like this report from the restaurant broker from the National Restaurant Association Show?  Please SHARE it on Facebook, Linked In or Twitter.

http://waiterwallet.com/

Topics: restaurant broker

What is a Restaurant Broker Selling?

Posted by Robin Gagnon on Apr 16, 2013 7:01:00 PM

restaurant brokerIt’s a simple fact of life that no one goes to school and studies to be a restaurant broker.  Very few school children surveyed on the “Career Day” at school would answer that this is what they want to be when they grow up (though teacher, doctor and veterinarian would surely make the list).  Restaurant broker is a term most people don’t even know and if they do, they aren’t sure what they do and what they sell.  That’s why the name of our firm is “We Sell Restaurants” so it’s perfectly clear to anyone meeting us what we do for a living.  Here’s a full lesson in what those of us selling restaurants for a living are actually doing.   

First, we sell jobs.  That’s right.  When we list restaurants like my recent Which Wich franchise multi-unit property with more than $300,000 of existing cash flow on the books – that’s a job.  It’s a career change for a lawyer who’s always dreamed of being in the deli business.  It’s a perfect role for a stay at home mom tired of juggling children and ready to juggle some serious cash flow.  It’s a “do-over” for the corporate refugee that’s been dreaming about leaving the business world where you’re rewarded for doing the most hours in a day instead of doing the most productive things on the job.  A cash flow rich business is a job to someone buying and that’s why they want to know exactly where every dollar is coming from and make sure it’s all on the books when they make the purchase.  

When restaurant brokers sell cash flow, it’s sold at a premium, or a “multiple” of the cash flow.  Generally speaking that will range from 2 times cash flow (on the low end) to 3.5 times cash flow (on the high end).  That can vary widely depending on the number of units, whether it is six figure earnings or something smaller, the time of year a buyer is purchasing and saturation of concepts in the market place among other things. 

Secondly, restaurant brokers sell assets.  That’s right.  If a restaurant isn’t making money, then we’re selling plain old used equipment so that the next guy can hopefully improve upon what the last fellow did.  That’s just used equipment.  We’re not like the big equipment re-sellers with used restaurant equipment for sale.  Their inventory is in a warehouse or showroom.  It has to be delivered, assembled, and then hooked up by a plumber or electrician.  A restaurant broker has the used equipment all constructed and ready to go in a single location so you can turn the key and start operating tomorrow. Buyers looking at asset sales should only worried about whether the equipment runs, not what kind of cash flow is being generated from it.  

Asset sales are perfect for guys with experience who want to put their concept into a new location.  When restaurant brokers sell assets, they are generally marketed for about 20 cents on the dollar versus the original investment.  That means that a buyer is paying very little but he’s not assured any cash flow.

A restaurant broker has two things for sale but at the end of the day, is only paid when a transaction takes place.  Restaurant brokers are compensated for their knowledge and their time is a precious commodity.  They are one part deal maker, one part hand-holder and one part bully who force everyone to the closing table including landlords.  They are pitching clients to landlords one minute and telling sellers to take a deal the next.  They are multi-taskers who don’t stop until the deal is done.  All those parts make up something pretty special in an environment as tough as this one.   Next time you meet a restauranrestaurants for salet broker, say something nice.  They might need to hear it that day.

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Want to see this restaurant broker's listings for sale?  Click the image on the right.

 

 

 

Topics: buying a restaurant, restaurant broker, selling a restaurant

Engineer Turns Restaurant Broker - Need help Buying a Restaurant?

Posted by Emily Yessick on Mar 11, 2013 2:44:00 PM

Restuarant Broker Emily YessickWhat business does an engineer have becoming a restaurant broker?  Upon graduation from Georgia Tech, I held my Civil Engineering degree in my hand and thought happily to myself, I can’t wait to start my career as an engineer! 

Then reality set in.  Sitting behind a desk churning out computerized drawings 40 hours a week for 52 weeks can sometimes be less than creative.  Developers seek engineers out for their expertise and help putting their field of dreams on paper so they can build it and people will come.  After several years of drawings and millions of keystrokes and mouse clicks, I craved more than dreams on paper.  I needed interaction!  Being in a cubicle most of the day with multiple trips to the coffee machine in hopes I passed a coworker or two was wearing me down.  Not to mention the economy was on the downhill slide and work was becoming scarce. 

My love for people and desire to watch others build their dream led me to some soul searching and asking myself some questions-ironically while sitting in a coffee shop.  How can I take what I know and love and go one step further?  When meeting up with old friends, where do most people gather? A restaurant. Countless numbers of dinner reservations are made every night or a need for convenience leads to 15 min delivery windows for date night “in”. Where do thousands of sports fans gather every Saturday or Sunday to watch the big game? To a favorite sports bar.  How many people go out at night in search for the best dance club or hangout?  Just about every college age person and young professional in Atlanta.  Our lives are centered around the food and beverage industry from love at first site at the local coffee shop, business meetings over lunch, first date dinners and engagements during dessert-we will never escape our love for food.  Inevitably this leads many people to make the statement,  “I have always wanted to own a [insert food and beverage establishment of choice]!” 

For me the decision was simple, helping others find their dream in buying a restaurant would lend the best of both worlds.  The next step was figuring out where this new path would lead me.  First stop- Real Estate School!  Real estate school was far from a walk in the park.  I was overwhelmed with definitions and terminology I had never heard before.  I was studying every night and reading day after day and wondering why am I doing this to myself?  The reminders of why kept coming back and pushing me forward.  Finally several months later, I passed the exam!

Whew what a relief!  Now what?  Then it came time to find my broker.  What I thought would be a long difficult process turned out to be the easiest of all!  After getting a lead from a friend, I started researching restaurant brokers which led me to We Sell Restaurants.  To no surprise they sell restaurants and lots of them.  I found myself reading the blogs and developing a sense of where I wanted to hang my license.  Finally I called and scheduled an interview with Robin and Eric Gagnon at We Sell Restaurants.  Not only were they extremely professional but also it was clear this husband and wife restaurant broker team know this industry like the back of their hand.  I know I am in good hands and cannot wait to fulfill the many dreams to own a restaurant.  I would tell anyone interested in buying or selling a restaurant, check out We Sell Restaurants.  You will not be disappointed!

Are you interested in a career as a restaurant broker?  We are hiring in our Atlanta office now!  Email your resume to info@wesellrestaurants.com and we'll contact you for an interview.

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Topics: restaurant broker

Ready to Become a Restaurant Broker?

Posted by Robin Gagnon on Mar 11, 2013 10:42:00 AM

Certified Restaurant BrokerHave you ever wondered if you have what it takes to become a restaurant broker?  Well, now might be the time to give it some thought because We Sell Restaurants is ramping up our staff and we're looking for a few good men and women.

What makes you successful in this business?  First and foremost, it's professionalism.  Restaurant brokers have to be savvy professionals that practice strong follow up with buyers and sellers. 

Secondly, a restaurant broker must be technically strong.  The "old" world of restaurant brokerage has been turned on its head by the We Sell Restaurants technical platform The B.O.S.S. (Brokers Operating and Sales System).  This unique management system is much more than a website.  It's a management system for keeping up with buyer activity, seller leads and online confidentiality agreements.  We hired our own developers to build a system that is one part marketing engine, one part management system, and one part operations system.  Our brokers spend their time where the money is, dealing with clients instead of chasing paperwork, faxing confidentiality agreements or worrying about where a paper document is.  The B.O.S.S. emails our agents, tracks their tasks and activities, houses our forms and training and much more.  The B.O.S.S. helps our restaurant brokers stay on their game. 

The third element of a successful restaurant broker is the ability to learn.  Our four-week training program begins with a 60-page manual, our own book "Appetite for Acquisition" and core exercises that begin your immersion in the business.  That moves to a week of in house training where 40 hours are devoted to an intense study course with two of the best in the business.   You transition from that module to another "in market" experience with specific required course work and in the last week of training, you're on the street being mentored by the team setting the standard in restaurant brokerage.

At the end of four weeks and after successful testing, you become a Certified Restaurant Broker, one of a handful in the entire nation.  Ongoing training and mentoring keep your skills sharp as you continue to immerse yourself and become a practice leader in this challenging industry. 

Do you have what it takes?  To be honest, not that many people will live up to our high standards.  You will need to interview with both Robin and Eric to be accepted.  You need a Georgia real estate license before you are admitted to our study program.  Most importantly, you have to prove to us why we should invest our talent and energy in training you.  At the end of the day, our brand is a powerhouse and we will only allow those associated with it to be the best of the best. 

For a limited time, we are entertaining resumes for our Atlanta office because we simply have more business than our agents can currently handle.  If you think you have what it takes, send your resume and if we like what we see, either Eric or Robin will give you a call.   

We Sell Restaurants is setting the nation's standards for restaurant brokerage.  Our growth represents a huge opportunity for the right individuals.   Our roles are all commission based and new restaurant brokers should have cash reserves to sustain them for a period of time until their first sales develop.  As commissioned salespeople, the sky is the limit in terms of earnings. 

Are you ready to test your skills as a restaurant broker?  Our next in house training class begins April 2.  Send your resume and proof of Georgia real estate licensure to info@wesellrestaurants.com before March 21, 2013.

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Topics: restaurant broker

7 Deadly Mistakes in Selling a Restaurant

Posted by Robin Gagnon on Jan 22, 2013 9:31:00 AM

Selling a RestaurantWhat separates the “solds” from the “might have solds?”  These seven killer mistakes in selling a restaurant made by owners lead the way.

As restaurant brokers, we’ve seen it all but these mistakes top the list when selling a restaurant and put you at a severe disadvantage in the marketplace. 

1.       The first deadly mistake in selling a restaurant is Hiring a rookie.  A residential agent attempting to sell your restaurant qualifies in this category.  A residential agent doesn’t have the background, experience or legal forms to even assist in selling a restaurant but all too often, it happens.  If you are even tempted to go this route, ask any would-be agent these questions. 

  • Where will my restaurant be marketed?  If they say the MLS or Multiple Listing Service – RUN as your listing will be public for thousands of agents under no confidentiality agreement.
  • How many restaurants have you ever sold?
  • How many restaurant valuations have you personally  performed and how are you arriving at your basis for my restaurant’s value?

2.       Mistake number two is Hiring a General Business Broker.  A general business broker is a step up from a residential agent but still does not have the specific knowledge and understanding of the business or the client base to sell your restaurant.  Talk with a specialist and compare the two options before making the second deadly mistake.

3.       The third deadly mistake in selling a restaurant is Selling it yourself.   Some sellers are tempted to go this route to avoid commission but the strategy can actually backfire.  Often the restaurant broker can value the business through his knowledge and experience over and above what the seller would ask on his own.  This negates the issue of commission since the valuation is higher and the owner receives more.  Secondly, an owner that is “emotionally connected” to his business has trouble separating those feelings when it comes time to negotiation and often blow deals over small issues.  Lastly, an owner trying to sell his restaurant doesn’t have the legal forms and protections to keep the listing confidential and prequalify buyers to weed out the “lookers.”  A professional restaurant broker does all of this and more with very little cost to a seller.    

4.       The fourth deadly mistake in selling a restaurant is asking too much.   Like all forms of real estate, the most activity on a listing takes place at the time it is released.  Putting too high a price in the beginning to “test the waters” can eliminate viable candidates.  It's a reality that in selling hundreds of restaurants, we restaurant brokers have rarely seen any business sell for more than it is worth.

5.       Asking too little is the fifth deadly mistake in a selling a restaurant.  An expert restaurant broker will interview and glean information from your profit and loss statements that add to increasing the value of the business on the open market.  As a seller, you may overlook common expenses that represent value to a new buyer like cell phone expense paid by the business or health insurance covering you and your family.

6.       Giving information before qualifying buyers is the sixth deadly mistake in selling a restaurant.  This is a rookie mistake (see deadly mistake number one) and an owner mistake (see deadly mistake number three) and is sometimes made by inexperienced brokers (see deadly mistake number two).  Buyers must be qualified before they are provided with sensitive information about your business.  Business identity theft is on the rise and any financial documents may contain your employer identification number or other information needed by thieves to ruin your business credit.  You wouldn’t hand over your social security number to a complete stranger so never allow anyone to hand over your EIN (employer identification number).restaurants for sale

7.       Lastly, the seventh deadly mistake in selling a restaurant is marketing to the masses without Legal Protection.  A restaurant broker has confidentiality agreements that hold consequences for buyers that breach confidentiality and protect your interests.

Now that you know what they are, you can avoid the seven deadly mistakes in selling your restaurant.

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Topics: restaurant broker, selling a restaurant