Advice for Buying a Restaurant and Selling a Restaurant

Reasons to Buy these Franchise Restaurants for Sale in in Sunny Florida

Posted by Robin Gagnon on Mar 29, 2017 10:01:29 AM

Are you ready for sunshine, no state income taxes and a business friendly climate?  Do you like franchise brands and want the opportunity to "own" a market with room for expansion?  We Sell Restaurants may have the listings for you in Jacksonville Florida.  These franchises for sale are part of a national brand offered at an incredible price!

Buy the entire market and get an incredible "wrapped" car that scream this brand as it travels in and around the market!  The two stores are ready to go and wait, there's more -- an opportunity to expand with additional locations.  The seller is including a right to develop another unit in this market.

Each store has reasons to buy.  The first one is highly developed in catering with Jacksonville U and the University of North Florida – both ideal targets for this upscale brand.  The second store is in a small business mecca for the area.  More development including a Hospital and Medical center to come will create tremendous foot traffic for the lunch business.

Manageable sizes for both locations and long term leases with options to renew give these locations plenty of future stability. Located in the sunny state of Florida these locations come with an opportunity to move to a booming area with great weather!. No snow days to worry about in these locations!

Already producing sales exceeding $600,000 from day one allows any new owner can come in and become part of a winning brand! These Sandwich Franchises for Sale get best in class training consisting of four full weeks where you learn every position. Training from all areas of the business from on the line along with key management skills and reporting on your POS system that will be Ipad based and provides the answers you need to run your business.

What are you waiting for? Learn More.. Click Now:

 
 
Listing ID:5176 Restaurant Broker Robin Gagnon    
Two Franchises for Sale - Right To Develop and Wrapped Car!
Lease: Valid through 2020 with 2 5 year options | Valid through 2017 with 3 5 year options
Monthly Rent: $4700 | 4162
Inside Sq. Ft. 2000 | 1550
Outside Sq. Ft.
Price:$375,000
City:Jacksonville

Robin Gagnon
(404) 800-6701

Topics: sell restaurant, sell a restaurant, buy a restaurant

Top Ten Restaurants for Sale in February 2017 by the Restaurant Brokers

Posted by Robin Gagnon on Mar 3, 2017 5:48:31 PM

 

Listing ID:5269 Restaurant Broker Ken Eisenband    
Restaurant for Sale in Hollywood - Owner is Retiring
Lease: Expires July 31, 2017 with options to be negotiated
Monthly Rent: $2650
Inside Sq. Ft. 1650
Outside Sq. Ft. 120
Price:$79,000
City:Hollywood

Ken Eisenband
(561) 350-3365

Buyers love to see their options and show their creativity with a blank open ready to lease space! This restuarant space for lease space in Johns Creek is a manageble size in a highly desired area. This location is ready for your new restaurant.  

Listing ID:5274 Restaurant Broker Cyndi Weinbaum    
Restaurant Space for Lease in Johns Creek, Georgia - Great Location
Lease: Negotiable
Monthly Rent: $$20.00 PSF + $4.43 CAM
Inside Sq. Ft. 1200 (Adjacent site can be added bringing total to 2400 Square Feet)
Outside Sq. Ft.
Price:$0
City:Johns Creek

Cyndi Weinbaum
 

Coming in at number three on the most popular restaurant for sale listings this location features one of the most desired trends in Atlanta, Hookah!  On the market for less than 2 weeks and this listing is already making the top 10 list! This restuarant for sale is on fire! Bring your offers to Restaurant Broker Steve Weinbaum. 

Listing ID:5275 Restaurant Broker Steve Weinbaum    
Bar for Sale in the Heart of Downtown Roswell - Profitable
Lease: 2 Years + 5 Year option
Monthly Rent: $3000
Inside Sq. Ft. 4000
Outside Sq. Ft. 225
Price:$249,000
City:Roswell

Steve Weinbaum
(770) 714-4552

South Florida makes it back on top with this restaurant for sale by Ken Eisenband.  This listing comes with a great Florida location and a popular Italian concept. Newly built out in Palm County -- you can keep the current concept or you create your own.

Listing ID:5254 Restaurant Broker Ken Eisenband    
West Boca Raton Restaurant for Sale is Searching for New Owner
Lease: Expires December 31, 2020 plus five year option
Monthly Rent: $3000
Inside Sq. Ft. 900
Outside Sq. Ft. 100
Price:$150,000
City:Boca Raton

Ken Eisenband
(561) 350-3365

Sunshine and Sushi! That is what this Broward County, Florida restaurant for sale listing offers. Profitable as it stands or make it your own with the excellent demographics. Fully equipped and ready to go, this location  will soon have one less fish in the sea.

Listing ID:5087 Restaurant Broker Ken Eisenband    
Profitable Restaurant for Sale in Tamarac Can Easily Convert to Any Concept
Lease: Expires April 14, 2020
Monthly Rent: $2037.50
Inside Sq. Ft. 1200
Outside Sq. Ft. 0
Price:$49,000
City:Tamarac

Ken Eisenband
(561) 350-3365

Before you know it Cino De Mayo will be here and what a better way to celebrate than with a SIX figure earnings from a  Mexican Restaurant for sale located in Houston, Texas.  This listing has been on the market a very short period of time and we have competing offers in play.  

Listing ID:5258 Restaurant Broker Steve Weinbaum    
Mexcian Restaurant For Sale in Houston Texas Delivers 6 Figure Earnings
Lease: 6 Months plus 3 year option
Monthly Rent: $9300
Inside Sq. Ft. 3960
Outside Sq. Ft. 1500 / 1200 covered
Price:$299,000
City:Houston

Steve Weinbaum
(770) 714-4552

Looking for small town living in a big state? This cafe for sale in Colorado comes with a farm to fork concept that keeps locals and tourists visiting. The compact simple menu keeps costs down and allows for more earnings by the owner.  Contact restaurant broker Bob Steinberger to learn more about this opportunity today. 

Listing ID:5016 Restaurant Broker Bob Steinberger    
 'Farm-2-Fork' cafe' for Sale in Colorado!
Lease: 4 years remaining plus 2 year option same terms
Monthly Rent: $900
Inside Sq. Ft. 1400
Outside Sq. Ft. 600
Price:$49,000


Bob Steinberger
(303) 901-4938

It's no wonder this Bar and Grill for sale in Atlanta keeps buyer clicking for more! This location offers their client base fun events that keeps earning high! Earnings over SIX figures this location will surely be gone soon!

Listing ID:5153 Restaurant Broker Robin Gagnon    
Bar and Grill for Sale in Atlanta - Own Your Own Version of Cheers!
Lease: Valid through September 30, 2020
Monthly Rent: $9225
Inside Sq. Ft. 6000
Outside Sq. Ft.
Price:$295,000
City:Lawrenceville

Robin Gagnon
(404) 800-6701

This cafe for sale is gourmet in menu and benefits! Located in Pompano Beach , Florida, super great rent is under $1800 per month.  This profitable restaurant business for sale is forecast to exceed $80,000 in earnings!  

Listing ID:5271 Restaurant Broker Ken Eisenband    
Sandwich Shop for Sale - Profitable Gourmet location in Pompano Beach
Lease: Expires September 9, 2019, plus five year option
Monthly Rent: $1746
Inside Sq. Ft. 900
Outside Sq. Ft. 300
Price:$150,000
City:Pompano Beach

Ken Eisenband
(561) 350-3365

Located in one of the most desired locations in Cobb County, Georgia this Hot Concept franchise for sale has buyers ready to find out everything! This Franchise for sale opportunity in booming Kennesaw Georgia is priced at a steal!  It's only $75,000 and sure to roll off the market with a buyer soon!

Listing ID:5303 Restaurant Broker Robin Gagnon    
Franchise for Sale in Booming Kennesaw - Cobb County - Georgia
Lease: 2 years remaining plus a 5 year option to renew
Monthly Rent: $1900.00
Inside Sq. Ft. 1000
Outside Sq. Ft.
Price:$75,000
City:Kennesaw

Robin Gagnon
(404) 800-6700

The month of February is know to be the month of love. Our buyers sure loved the opportunity to find out more about these top 10 restaurant for sale listings. These business opportunities are from all parts of the country which shows buyers are everywhere! D

Ready to take a look at some of the latest offerings?  Click this link for the latest listings online.

Check Available Listings

Ready to Sell? We have buyers ready!

Free Restaurant Valuation

Topics: buying restaurant, sell a restaurant, selling a restaurant, buy a restaurant

Which Restaurants Are Open for Thanksgiving? What do you Mean You're not Cooking!

Posted by Robin Gagnon on Nov 18, 2016 10:00:00 AM

abstract-1239143_1920.jpgHat tip to our good friends at  Restaurant News who compiled an amazing list of restaurants that are open for Thanksgiving Day.  The restaurant brokers have to admit, that like many Americans, we have been shirking the responsibility of standing in front of the hot stove and putting dinner on the table for a number of years.  Why bother when there are so many great restaurants open to either dine in or best of all-- pick it up to go!

Seems like we're not alone as the National Restaurant Association research from 2015 found that 14 million Americans dine out for this holiday.  That's a lot of people who are not heading to grandma's house in a few short days.  They also found that 16 million Americans supplement home cooking for Thanksgiving with someone from a restaurant kitchen.  

What are the benefits of letting someone else do the work?  Well start with -- someone else does the work!  For those of us that prefer to spend the time in the company of the ones we love, there's no wondering if the Turkey will finish on time or if we remembered to pull those pesky giblets out.  We can sit back, relax, enjoy a glass of wine and count our blessings while someone else serves up the food.

We've seen the list of restaurants open for Thanksgiving grow in number for 2016 so we decided to group them by category below:

Traditional American Restaurants where one would expect a Thanksgiving Day feast include the follwoing offerings:  

Country Buffet will be open from 11am-6pm.

Country Cookin is serving up their Thanksgiving Day Feast with turkey or ham with all-you-can-eat holiday salads and sides for $10.99 (kids 10 and under $4.49).  Most locations open and serving breakfast from 7-11 am and a traditional Thanksgiving Feast from 11am-4 pm.

Cracker Barrel Old Country Store will serve a special in-store Thanksgiving meal from 11 a.m. to 10 p.m. This traditional Homestyle Turkey n’ Dressing Meal comes complete with gravy, a sampling of sugar cured ham, sweet potato casserole with pecans, cranberry relish, choice of a country side, a refillable beverage, made from scratch biscuits or corn muffins, and a slice of pumpkin pie for dessert. The Homestyle Turkey n’ Dressing Meal is available for $12.99 per adult and $7.99 per child.

Denny’s guests can enjoy the popular Turkey & Dressing Dinner, featuring a tasty new recipe with perfectly carved slices of premium turkey breast. This holiday favorite is served with savory stuffing, turkey gravy and cranberry sauce along with a choice of two sides and dinner bread.

Waffle House restaurants will be open, still serving ‘em up scattered, smothered & covered.Boston Market will be open serving a traditional Thanksgiving Dinner.

Golden Corral is offering a Thanksgiving Day Buffet at participating locations.  The buffet includes carved turkey, carved ham, fried chicken, rotisserie chicken, pot roast, meatloaf, sirloin steak, fried shrimp and much more.  Call your local Golden Corral for special holiday hours

K&W Cafeterias will be offering a Thanksgiving Day Special for $7.49.  Roast turkey with dressing and cranberry sauce, two vegetables, fresh baked bread, scratch made dessert and refillable beverage.  Continuous service Thanksgiving Day.

Marie Callender’s – Adults $19.99.  Starters include fresh baked golden cornbread, a coup of potato cheese or hearty vegetable soup or a crisp house salad.  Entrees include choice of Freshly Roasted Turkey Dinner or Oven-Baked Ham.  Includes seasonal vegetables, fire-roasted yams with cranberry streusel topping and fresh mashed potatoes.  Kids $8.99.

Mimi’s Cafe is serving up its traditional Thanksgiving Dine-In Meal beginning at 11 am on Thanksgiving Day. The quintessential three-course dinner ($18.99 for adults and $8.99 for kids) includes choice of soup or Mimi’s house or Caesar salad, roasted turkey (choice of white and/or dark meat), traditional gravy, buttered cornbread stuffing, whipped mashed potatoes, candied pecan sweet potatoes (without pecans for kids), green bean casserole with French fried onions, apple cranberry orange relish, signature bread basket with carrot nut bread, petite French Baguettes and choice of brown sugar pumpkin pie or bourbon pecan pie (upgrade to any Slab Pie for $1).

Seasons 52 is taking reservations and will be serving Thanksgiving Dinner.  Enjoy Plainville Farms roasted turkey with gravy, traditional herb stuffing, Yukon mashed potatoes, maple-glazed butternut squash, French green beans, house-made cranberry relish, and pumpkin pie mini indulgence.  Adults $26.90. Child’s portion $12.90.

Shoney’s will feature its home-style, Thanksgiving Day All-You-Care-to-Eat Food Bar, starting at $11.99 and $5.99 for kids 5 -10. Kids 4 and under will enjoy a free buffet with an adult meal purchase and each guest who enjoys Shoney’s Food Bar will received a free slice of delicious pumpkin pie.

These seem like traditional stops on the Thanksgiving Day feast parade but in one twist the restaurant brokers didn't see coming, there are a number of Mexican restaurants offering full fledged American meals including:

Acapulco Restaurant and Cantina is serving a special Thanksgiving Day buffet with a turkey carving station, traditional Thanksgiving dishes, Mexican specialties, soups, salads, desserts, and more.  For Ports O’ Call – $ 26.99/$9.99; For Marina Pacifica, Downey, Costa Mesa and Glendale – $24.99/$9.99; For all other Acapulco locations – $21.99/$8.99.  For Los Angeles – regular menu only.  Ports O’ Call, Marina Pacifica, Costa Mesa, Glendale (11am-7pm), Downey (11am-8:30pm), Los Angeles (12pm-8pm).  All other Acapulco locations (11am-7pm).

El Torito will offer an all-day buffet with traditional Thanksgiving items, including a turkey carving station, Mexican specialties, taco station, salads, soups and desserts from 11am – 7pm.  For El Torito in Burlingame, Dana Point, Monterrey, San Leandro and Marina del Rey – All-Day Buffet $25.99/$7.99.  All Other El Torito Locations – All-Day Buffet $23.99/$7.99.

Chevys Fresh Mex will offer a seasonal dish created by Chef Carlos Franco – Achiote-Marinated Roasted Turkey breast with rojo mole served with garlic mashed potatoes, green bean casserole, jalapeno corn bread and cranberry sauce. Guests can also enjoy all of the Chevys craveable favorites such as mesquite-grilled fajitas, tableside guacamole, freshly squeezed margaritas, farmers market enchiladas and more.  11am-7pm.  Thanksgiving dish is $17.99 per person; $7.99 per child. Price may vary.  Regular menu is also available

It doesn't stop with Mexican themed restaurants, Italian restaurants are getting in on the mix and they include:

Maggiano’s Little Italy is taking reservations.  First Course: Assorted Brushetta Plate, compliments of the chef.  Second Course includes choice of Maggiano’s Salad, Caesar Salad, Chopped Salad or Italian Tossed Salad (choose two).  Third Course choices include Traditional Roast Turkey Breast with Giblet Gravy & Focaccia Sausage Stuffing, Country-Style Baked Nueske Ham with Mashed Sweet Potatoes and Parmesan-Crusted Tilapia with Sage, Lemon & Tomatoes (choose two).  Choose two pastas: Taylor Street Baked Ziti, Maggiano’s Famous Rigatoni “D”, Spaghetti & Meatball, Four Cheese Ravioli, Gnocchi & Italian Sausage and Pasta of the Day.  Fourth: Pumpkin Cheesecake, Warm Apple Crostada, Chocolate Zuccotto Cake and Tiramisu (choose two).

Buca di Beppo Italian Restaurants are serving up a Traditional Turkey Dinner with sliced white meat turkey, homestyle gravy, roasted garlic mashed potatoes, spicy Italian sausage stuffing, green beans, cranberry sauce and pumpkin pie.  Individual $20.  Small serves three for $60.  Large serves 6 for $120.  Dine in only.  Prices may vary by location.

Romano’s Macaroni Grill will be offering a great Thanksgiving dinner for just $18.99 from 12 noon to close by reservation only.  Includes Roasted Turkey with Roasted Garlic Rosemary Gravy, Buttermilk Mashed Potatoes, Glazed Carrots with Candied Bacon, Sausage & Apple Stuffing and Cranberry Sauce.Roy’s is offering a three-course holiday menu.  Starters include Grilled Caesar Salad or Lobster Bisque.  Entree will be Pan Roasted Teriyaki Glazed Turkey.  Sides include Potuguese Sausage Stuffing, Haricot Vert and Hazelnuts, Sesame Carrots and more.  Desserts include Maple Brown Sugar Pumpkin Tart or Chocolate Torte.  Adults $39.95 per guest without wine or $69.95 with two glasses of wine.  Children’s Turkey Dinner $16.95

Seems like the Steakhouse and Seafood Restaurants want to attract you as well including:

Black Angus Steakhouse encourages you to make your reservations now for its Thanksgiving Day Feast served with all the fixin’s.  $18.99 for adults and $9.99 for kids.

Bonanza Steakhouse will be offering a Thanksgiving Day Premium Buffet brimming with all of your holiday favorites. Contact your local Bonanza today for details and pricing.

Fleming’s Prime Steakhouse opens at 11am serving a four course Thanksgiving meal for $39.95 per adult.  Main Course includes Mixed Herb Roasted Turkey Breast with turkey gravy, Housemade Brioche Stuffing, Butter-Mashed Sweet Potatoes, Green Beans with bacon, almonds and onion.  Children’s Thanksgiving Menu available for $19.95.

Ruth’s Chris Steak House is opening at 12pm Thanksgiving Day with a special menu.  $39.95 per adult and $12.95 for children  (prices may vary at participating locations).  Starters include choice of Seafood Gumbo, Caesar Salad or Steak House Salad.  For the main course, Ruth’s Chris is offering oven-roasted sliced Turkey Breast served with homemade gravy, sausage and herb stuffing and more

Smith & Wollensky will be serving a traditional Thanksgiving Day menu for $49 per adult, $20 per child under 12.  Roasted Butternut Squash Soup, Chopped Salad, Herb Roasted Turkey with Sausage and Cornbread Stuffing, Roasted Brussels Sprouts, Potatoes Au Gratin, Duck Fat Roasted Root Vegetables.  Choice of Classic Pumpkin Pie, Warm Apple Tart or Pecan Pie.  Dinner menu also available.

McCormick & Schmick’s Seafood & Steaks is serving a Roasted Turkey Dinner at participating locations.  The Roasted Turkey Dinner includes butternut squash bisque or walnut mixed greens, mashed potatoes and gravy, cornbread stuffing, apple squash casserole, seasonal vegetables and cranberry sauce.  Reservations recommended.

Legal Sea Foods will serve turkey breast with sausage stuffing, mashed potatoes, butternut squash, gravy and cranberry sauce.  $24.95 per person and $8.95 for children 12 and under.  Hours may vary by location.  Reservations recommended.

Ponderosa Steakhouse will be offering a Thanksgiving Day Premium Buffet brimming with all of your holiday favorites. Contact your local Bonanza today for details and pricing.

The number of restaurant chains open for Thanksgiving seems to grow every single year.  Whether you are dining in these locations, enjoying your family's home cooking or serving up your own creation, we wish you a wonderful holiday filled with blessings. 

 

Topics: selling restaurants, buying a restaurant, sell a restaurant

How to Sell a Restaurant. Listing Your Restaurant at the Right Price

Posted by Robin Gagnon on Jan 2, 2012 11:38:00 AM

Restaurant Valuation

Putting a restaurant for sale on the market at the wrong price is more damaging than you think.  There are finite numbers of qualified buyers and you get one chance to make a first impression. 

Owners of too many restaurants for sale learn the hard way that listing at the wrong price is the single largest reason listings don’t sell.  Here are the steps in an accurate restaurant valuation.

Step one.  

Selling your restaurant begins by assembling the right information.  An expert restaurant broker will need information from you before he can value your restaurant.  If he doesn’t, beware of his expertise.  Pricing your business without data is like a doctor diagnosing cancer over the phone.  An accurate listing price is dependent on the restaurant valuation and will require analysis of the following:

 

  • A year to date profit and loss statement on the restaurant for sale reflecting current conditions.
  • The latest year’s tax return that is available.
  • A list of the furniture, fixtures and equipment that will transfer in the sale.

If possible, send this to the broker in advance of your meeting so he has time to do an initial workup on the business for your valuation.  

Step two

Meet with the restaurant broker to review the financial information.  Do not worry if the tax return or profit and loss statement shows negative earnings.  A financial analysis will include reconciliation of “add-backs” or owner compensation that you received on the business to adjust for owner benefit.  The person performing the restaurant valuation will ask questions to verify all the potential earnings for a new buyer including:

  • What income (salary, distribution or other) was paid directly to you or a family member?
  • What other expenses benefited you directly (such as restaurant paid health insurance, life insurance or car lease)?
  • Were there any “one-time” or extraordinary expenses for last year (a HVAC or roof replacement, accounting expenses associated with an audit or legal expenses associated with a lawsuit).

Step three.

Walk the restaurant broker through the business so he can view it from a buyer’s point of view.  He will also want to understand the condition of the furniture, fixtures and equipment.  Listing a restaurant is not performed over the telephone.  While a lot of research can be performed online, a broker needs to view the location, adjacent businesses and physical property. How can he or she explain the benefits of your listing to others without seeing it in person?  He will also need to take photographs, a key selling feature for your listing.

Once these steps are complete, the broker should have a listing price for you.  Expect that the restaurant will always be worth more to the seller than to anyone else.  After all, you invested your blood, sweat and tears into building the business. If you’re in a low cash flow or negative cash flow position, you will probably be looking at a loss.  That’s why it’s even more important to list at the right price and sell quickly.  The more time it stays on the market, the longer you’re losing money and tied to the obligation on the lease.

An expert restaurant broker will be able to justify the pricing he recommends for the business.  He can also share “comps” or comparable property sales with you.  An expert in the field of restaurant valuation should have access to national comparable sale databases as well as access to local sales.  

Once you’re comfortable with the valuation, move forward and list the restaurant as quickly as possible.  Shopping for another broker that will give you a higher valuation can be a mistake. First, less experienced brokers may take the listing at the higher price.  Ultimately, that means it will sit on the market until you ultimately reduce pricing to the level that will sell.  Secondly, your listing becomes “stale” after sitting without offers for a period of time.

Put your restaurant on the market at the right price the first time.  It will move quickly when priced to sell.

 

Hundreds of restaurant listings for sale listed at the right price.  Here's a link to our latest listings.


Topics: pricing a restaurant for sale, restaurant valuation, restaurant broker, sell a restaurant

The Basics of Selling an Atlanta Restaurant

Posted by Eric Gagnon on May 19, 2011 2:13:00 PM

One of the key basics when you sell a restaurant is the relationship that you have with your restaurant broker.  It is of utmost importance to establish a trusting and open relationship that advocates complete honesty in all respects.  It is extremely important to live by the “no surprises” policy to ensure that your restaurant broker knows about all of your liabilities and dirty laundry well in advance.

You may have situations that you are embarrassed to reveal because you think you are the only restaurant owner who has experienced these things.  The situations could range from being slapped with a liquor license citation, back rent that is owed in the amount of $30,000, a tax lien for thousands of dollars, or a lawsuit from an employee. 

The reality is that the restaurant broker has seen and heard it all before and nothing surprises them.  In fact, the restaurant broker is equipped with the skills to help you work through these types of issues to help the deal reach the closing table.  This is the reason you should never hide anything from the restaurant broker and maintain a relationship that is open and honest.  The broker cannot help you with things that he or she doesn’t know about.

Second, establish the grounds for communications when it comes to how the broker will communicate with you.  There are many different ways a broker can communicate with you so ask them what method they use for communicating when someone inquires about your listing.  The broker may automatically send you an email where others will call you when there has been an inquiry.  Other brokers are poor communicators and will not let you know anything at all.

Set the expectations for how you want your broker to communicate with you regardless of whether you want ongoing communication or a simple notification when there is a deal.  Remember that brokers who specialize in the restaurant and bar industries are quite familiar with how the business works.  This means they will not call you at eight o’clock in the morning since you work late and they will not call you during peak periods in the business such as the lunch or dinner hour.  They may never call you at the restaurant to maintain confidentiality or if they do call, they will simply leave their first name to protect your privacy.  It is important to communicate to your broker how you want to be contacted and when.

Third, it is important to make sure there are no misunderstandings with the listing agreement contract.  This is a contract between you and the restaurant broker that defines exactly what you are selling and the parties that are authorized to sign so that the offer can make its way to the closing table.

Before signing the listing agreement make sure that you have secured all partner consent and you have signed a corporate resolution to sell.  If you have partners in the business this move will protect you when offers are presented and one partner changes their mind or another is out of the country without email. 

Make sure you obtain a corporate seal and signature on a document that states the corporate officers met and agree to sell the business by vote taken on this day.  One of the partners should be provided with the authority to sign on behalf of the other partners in the business. If the partnership involves a husband and wife this step is usually not necessary. When there is more than one partner, the restaurant broker may request the resolution accompanied by a signature on the listing agreement.  The broker will then keep a copy and include another copy in the appendix.

Fourth, it is important to establish an understanding of who is selling the restaurant and the listing agreement must be signed by the person who owns the business and holds the liquor license.  The agreement requires a signature by the legal entity who owns the business assets and the legal name of the business that is being sold is used on the contract.

Fifth, you will need to verify the status of your corporation by accessing the Secretary of State website online for your state to ensure that the officers that are listed on the website are accurate and the complete filings are up to date.  It is important to take this step early on to avoid conflicts later when the contract is drawn up.

Topics: restaurant broker, sell a restaurant, selling a restaurant

How to Sell a Restaurant and Why You Shouldn't Try This Alone

Posted by Eric Gagnon on May 19, 2010 2:09:00 PM

Before you think about a selling your restaurant on your own you should read this article.  Here are three very good reasons to bring a restaurant broker into the deal.

Reason #1Emotional attachment to your restaurant business.  If you have run your restaurant for an extended period of time then you have watched it grow over the years and this creates emotional ties your business.  You may view your restaurant as your baby and something that has been instrumental in providing for your family. 

Once you have made the decision to sell you will go through many different kinds of emotions including ongoing attachment and regret.  This makes it difficult for you to work with prospective buyers especially if they criticize something about your business such as “I tried the spaghetti and the sauce had too much salt.”  If this is a recipe that you pride yourself on this could affect your judgment toward the prospective buyer. 

Because the prospective buyer is making the offer they will try and find every flaw possible to justify a lower price.  If you sell with a restaurant broker their job is making sure the transaction and the deal gets accomplished and they place no emotion behind the sale.  This is a lot different than it is for you if you try to sell on your own.

Reason #2 – You know how to run and restaurant and the restaurant broker knows how to sell a restaurant.  As a restaurant broker our experience with restaurant owners has been that they are unique people who have created something successful and managed to build it so it could support their family. 

We come across a variety of different restaurant owners that have learned the old family recipes next to their grandmother or they may be exclusive chefs that have developed a knack for cooking.  Instead of doing the accounting paperwork, they prefer to entertain people and live life under the watchful eye of the public.  Although they are good at finding solutions when the bartender and dishwasher both call in sick, they prefer not to take care of the mindless paperwork that is necessary but not “hands on” to the business.

You must remember that the accounting details are important to the potential buyer and they are going to want to focus on this information.  Potential buyers are not concerned about the time of day that they tour your restaurant and they may show up at your busiest time such as between noon and 6:00 p.m. on a Saturday. 

If you are trying to cook and manage the restaurant in addition to answering the buyer’s questions, you will be doing more of what you are less good at and less of what you are excellent at doing.  As a result, your business will suffer in the absence of your management and the potential transaction for the sale of your restaurant will also suffer due to your lack of brokerage skills.  The best thing to do is to let a professional Atlanta restaurant broker handle the sale of your restaurant while you continue to do what you do best to keep increasing sales and maintaining profits.

Reason #3 – An offer does not mean your restaurant is sold.  Although you may have come to agreement with the buyer on the selling price of your restaurant this is only the beginning.  It is not very difficult to put together a buyer and seller that agree on a price as long as the bookkeeping contains precise records.  The Atlanta restaurant broker can be a great help when it comes to seeing the contract through to the closing table.  Once a price is agreed upon there are many things that can stand in the way when the buyer begins to rethink the transaction and start putting everything under a microscope.  This is where the business broker can help you by skillfully working out some of the issues that come up with the buyer that can cause a deal to fall apart.

The restaurant broker can help reassure the buyer that his concerns such as an unpaid lien  can be resolved out of closing and that it is not a complete crisis.  The restaurant broker can also act as a coach for the seller by walking him through the sales tax clearance letter with the state or locating two year old tax returns with a stamp on them from the Internal Revenue Service.

The broker can also keep both parties in the deal when the buyer learns that the inspection indicates there is a list of items that need to be fixed or when the seller finds out he is required to remain on the liquor license during the transition period.  The broker can also negotiate with the buyer’s attorney who refuses to complete the closing without this piece of paper and then tell the seller where he can easily obtain this piece of paper.

The broker is the mediator for both sides of the deal and gets yelled at from all angles while keeping their cool in the process.  This is the reason that many restaurant brokers hear “The deal could not have happened with you” at the end of the closing process.  A restaurant broker can prevent the deal from going sideways by constantly repairing the holes and bringing it back on track. 

Without a restaurant broker you have less than a 1 in 20 chance for the deal to make it all the way to the closing table.  This is why if you get an offer, it is only the beginning and you need an experienced broker to see the deal through to completion.  These are the reasons you should not try to sell an Atlanta restaurant on your own and instead use a restaurant broker.

Topics: restaurant broker, sell a restaurant, sell your restaurant

Restaurant brokers answer the question, How do I sell a restaurant?

Posted by Eric Gagnon on Apr 15, 2010 1:00:00 PM

An expert restaurant broker knows how to sell your restaurant fast and for top dollar.

The first step in selling your restaurant is finding an expert restaurant broker.  The restaurant broker brings experience to the deal. He has the knowledge to pre-qualify buyers, price your business, market and advertise the listing in a way that protects confidentiality and negotiate when it comes time to put the sale together.  He can also help you avoid some of the risks associated with trying to sell on your own. 

While it is theoretically possible to sell a business without using a business broker, it is not a choice for the faint of heart.  It can also ultimately, prove very dangerous to the seller.  Before you decide to “go it alone” consider the potential for negative consequences.  Here are some of the reasons you should choose the resources of a qualified Atlanta restaurant broker.

First, there’s no cost.  Most expert restaurant brokers invest their time and money to market your business and do not get paid until a sale occurs.  That’s an incredibly important element.  How many services are free of charge to the Seller until they actually deliver a result?   Secondly, expert Atlanta restaurant brokers have skills that provide you with the maximum value for your business as it is being marketed.  The expert Atlanta restaurant broker knows how to scrub your financial statements and ask questions to maximize every dollar of seller’s discretionary cash flow so nothing is left on the table.  He or she knows how to build a marketing package that anticipates the requirements of the Buyer without compromising your business or providing data to an unqualified buyer. 

Business brokers have access to legal documents and methods to bind Buyers to confidentiality as well as qualify their ability to purchase.  They have spent years adapting their forms to each situation and anticipating the issues that can arise.  They have no issue being tough on those that want to “look” without qualification because they’ve seen it all before.  As the owner of a restaurant for sale, will you succumb to the lure of the opportunity and let those that are unqualified have access to your business?  We’ve seen it happen countless times with eager owners or inexperienced brokers.

Marketing a confidential listing requires real talent.  The listing has to be written in such a way as to entice would-be buyers to show interest while at the same time masking the identity and location of the restaurant.  It is a skill good Atlanta restaurant brokers have been perfecting for years.  They know the buzzwords that get the ads noticed and the headlines that create the most activity.  They are specialists in the arena of restaurant marketing and while a novice can certainly learn and apply these lessons, again you have to ask “Why?” when you can receive this benefit at no charge?

One of the most prevalent forms of marketing is the Internet but for all its positives, it is also a preying field for the inexperienced.  Listings result in phony “phishing” schemes from unscrupulous brokers saying ‘We have a Buyer for your listing” which is the same message they send to hundreds of others.  Scammers respond to ads saying they want to buy but need to see all the books and records first.  Unsuspecting sellers provide tax returns only to find their business credit is ruined and their business identity has been stolen or leveraged for a loan.  Most don’t stop to consider that an employee identification number issued by the IRS is the equivalent of handing over your personal social security card.  

Experienced restaurant brokers know how to sell your restaurant so you can spend your time running the restaurant until the offer comes in.  These brokers put the right protections to put in place to take a blind inquiry from the Internet and convert it to a qualified prospect with the background and experience to purchase your restaurant for sale.  

 

Topics: restaurant broker, sell a restaurant, sell your restaurant