Fast Market Entry: How Chicago Buyers Converted a Jacksonville Franchise in Six Weeks
Listing #24417 | Pizza Restaurant Asset Sale | Rebranded and Reopened
The Challenge
Franchise ownership can be an excellent vehicle for building a restaurant business, but franchises aren't forever commitments. Sometimes life priorities shift, and what once made sense no longer aligns with where you need to focus your time and energy.
The seller of this Jacksonville Stoner's Pizza Joint location lived out of state and had been operating as an absentee owner. While absentee ownership can work with the right team and systems in place, it requires constant attention and creates limitations that hands-on owners don't face. The franchise was generating solid sales, the 1,160 square foot location was set up efficiently for delivery and pickup with minimal dine-in seating, and monthly rent was exceptionally attractive at just over $2,200. The operation had a dedicated team in place and benefited from the franchise brand's strong reputation and a favorable 4% royalty structure.
But the seller's family commitments had shifted dramatically, requiring more time and presence than absentee restaurant ownership allowed. The decision wasn't about business failure. It was about life priorities. They needed to divest cleanly and quickly to redirect their focus to what mattered most in this season of life.
The challenge was executing a fast exit while finding the right buyer who could see beyond the franchise brand to the underlying opportunity: a turnkey delivery and pickup operation with low overhead, existing equipment, established customer traffic, and flexibility to rebrand.
The Property
This 1,160 square foot location was purpose-built for efficiency. The layout was designed specifically for high-volume pickup and delivery operations, with streamlined kitchen workflows, adequate prep space, and systems built for speed. Minimal dine-in seating kept overhead low while allowing the operation to focus on what it did best: getting quality pizza out the door quickly.
The equipment was complete and well-maintained. The delivery infrastructure was already in place. The location had established customer awareness and traffic patterns. Monthly rent of just over $2,200 provided exceptional unit economics for a pizza operation, leaving plenty of margin for an owner-operator to generate strong returns.
As a franchise location, the buyer had options: continue operating under the Stoner's Pizza Joint brand with franchise support and systems, or convert to their own concept and take full control of the brand, menu, and operational approach. The seller made it clear this was being positioned as a keep-or-convert opportunity, giving buyers maximum flexibility.
For the right buyer, this represented speed to market without the expense, risk, and timeline of building from scratch. The bones were there. The equipment was there. The location was proven. All that was needed was the right operator with a clear vision.
The Solution
Nick and his wife in Chicago had been planning their move to Jacksonville for months. They had restaurant experience, they had developed a clear vision for a Chicago-style pizza concept, and they knew exactly what they didn't want: to start from scratch with a costly six-figure build-out and six to twelve months of permitting, construction, and pre-opening chaos.
They wanted speed to market, controlled overhead, and the flexibility to implement their own brand immediately. When they discovered the Stoner's Pizza Joint listing, they saw exactly what they needed.
The layout was perfect for their delivery and pickup focused model. The equipment could support their Chicago-style pizza production. The low rent meant they could rebrand without breaking the bank. The existing team could be retained and retrained on their recipes and service standards. Most importantly, the seller's willingness to structure this as an asset sale rather than insisting on franchise continuation gave them complete freedom to launch under their own brand.
The transaction moved quickly. The seller wanted a clean exit focused on asset sale rather than extensive financial disclosures, which suited buyers who were more interested in the physical space, equipment, and operational setup than historical performance. Both parties understood exactly what they were getting. The seller divested an obligation that no longer fit their life priorities. The buyers acquired a turnkey platform to launch their own brand with minimal capital outlay and maximum speed.
The Outcome
Within weeks of closing, Nick and his wife began remodeling. They projected a four to six week timeline to reopen under their own Chicago-style pizza concept, leveraging the existing equipment, delivery infrastructure, and customer awareness of the location while introducing their own recipes, branding, and operational approach.
The remodel focused on the essentials: new signage, menu boards, branding elements, and recipe implementation. The kitchen equipment didn't need replacement, just reconfiguration for their specific production needs. The delivery systems were already in place and integrated with major platforms. The location had established traffic patterns and customer awareness that could be redirected to the new brand.
The seller successfully exited to focus on family, achieving a clean break from franchise obligations and operational responsibilities. The buyers gained the fast market entry they wanted with full control over their brand, concept, and growth trajectory, without the massive capital requirements and timeline delays of ground-up development.
Key Insight: Second-generation restaurant spaces continue to be one of the smartest plays for experienced operators who value speed, efficiency, and capital preservation. Franchises can be excellent vehicles for building a business, but when life priorities shift or entrepreneurial vision outgrows franchise constraints, a well-structured exit and asset sale can serve both parties perfectly. Buyers who can see past the existing brand to the underlying operational infrastructure and location advantages gain tremendous competitive advantage over those who insist on building from scratch.
Looking for speed to market with your restaurant concept? Contact We Sell Restaurants to explore second-generation opportunities that let you open in weeks, not months.
Frequently Asked Questions About Buying and Converting Second-Generation Restaurant Spaces
Can I sell my franchise restaurant to someone who wants to rebrand?
It depends on your franchise agreement terms and how you structure the sale, but yes, it's often possible with proper planning.
Review your franchise agreement carefully: Most franchise agreements require new owners to continue operating under the franchise brand and pay transfer fees. However, agreements typically include termination clauses that outline how you can exit the franchise system.
Consider asset sale structure: You can sell the equipment, assign the lease, and transfer goodwill without transferring the franchise agreement itself. The buyer takes over the space and converts to their own concept while you terminate your franchise relationship according to your agreement terms.
Understand termination requirements: Franchise agreements usually specify notice periods (often 30 to 90 days), termination fees if applicable, and requirements for de-identifying the location (removing signage, destroying branded materials, etc.).
Consult with an attorney experienced in franchising: Franchise law is complex, and improper termination can result in breach claims, ongoing royalty obligations, or litigation. Legal guidance ensures you exit cleanly without ongoing liabilities.
Communicate with your franchisor: Some franchisors are cooperative about terminations when owners have legitimate reasons and handle the process professionally. Others are more difficult. Early communication helps you understand what to expect.
The Stoner's Pizza Joint transaction worked smoothly because the seller positioned it as "keep or convert," explicitly giving buyers flexibility to continue the franchise or rebrand. This transparency attracted buyers like Nick and his wife who wanted to implement their own Chicago-style concept without franchise constraints.
What's a second-generation restaurant space?
A second-generation (2nd gen) restaurant space is a location previously operated as a restaurant that retains existing infrastructure, significantly reducing build-out costs and opening timelines.
Existing kitchen infrastructure saves massive capital: Second-gen spaces include operational hood systems with fire suppression, grease traps, three-compartment sinks, hand wash stations, and electrical and plumbing rough-in already permitted and inspected. Installing these systems from scratch in a raw space costs $100K to $200K+.
Equipment often conveys with the space: Many 2nd gen sales include existing kitchen equipment (ovens, ranges, refrigeration, prep tables) that's functional and permitted, saving $50K to $150K+ in equipment costs compared to ground-up build-out.
Dramatically faster opening timeline: With infrastructure in place, experienced operators can open in 4 to 8 weeks versus 6 to 12+ months for ground-up construction. This speed advantage means you're generating revenue while competitors are still in permitting.
Lower risk from proven location: The space has already operated as a restaurant, proving that traffic patterns, parking, visibility, and access support restaurant operations. Raw spaces carry location risk that 2nd gen spaces have already validated.
Permitting is simpler and faster: Health department inspections and permits are easier when you're maintaining existing use rather than establishing new restaurant use in a space that previously served a different purpose.
The Stoner's Pizza Joint space exemplified ideal 2nd gen opportunity: 1,160 sq ft with complete pizza equipment, delivery infrastructure, and layout optimized for pickup/delivery operations. Nick and his wife could implement their Chicago-style concept in weeks rather than enduring the 6 to 12 month ground-up timeline.
How fast can you open a restaurant in an existing space?
With a fully equipped 2nd gen space and proper planning, experienced operators can open in 4 to 8 weeks, though timeline varies based on several factors.
Concept changes affect timeline: Menu-only changes with existing equipment can happen in 2 to 4 weeks. Full rebranding with equipment modifications, new signage, and interior updates typically requires 6 to 8 weeks. Major conversions changing cuisine types or adding bars can take 10 to 12 weeks.
Permitting requirements vary by jurisdiction: Health department inspections for ownership changes typically take 1 to 2 weeks if you're maintaining similar operations. Liquor license transfers can take 30 to 60 days in some states. Sign permits for exterior changes take 2 to 4 weeks in most municipalities.
Equipment modifications extend timelines: If you're keeping existing equipment with minor modifications, timeline stays short. If you're replacing major equipment like ovens or refrigeration, add 3 to 4 weeks for ordering, delivery, installation, and inspection.
Hiring and training staff takes time: Building a team from scratch requires 2 to 3 weeks minimum for recruiting, interviewing, hiring, and training. Taking over existing trained staff (as often happens in 2nd gen acquisitions) accelerates opening significantly.
Recipe testing and menu development: New concepts need time to test recipes, refine techniques, establish portion controls, and train staff on execution. Budget at least 1 to 2 weeks for this critical phase before opening to the public.
Nick and his wife projected 4 to 6 weeks to reopen the Jacksonville location under their Chicago-style pizza concept because the kitchen equipment could support their production needs with minimal modification, delivery systems were already in place, and they only needed branding updates and recipe implementation. Compare this to 6 to 12+ months for ground-up build-out including permitting, construction, equipment procurement, and pre-opening preparations.
What's better: buying a franchise or converting an existing restaurant?
The answer depends entirely on your experience level, goals, and operational capabilities. Both paths offer distinct advantages and challenges.
Franchises provide structured support: Established franchise systems offer proven operational playbooks, comprehensive training (typically 3 to 4 weeks), ongoing operational support, established vendor relationships with negotiated pricing, national marketing campaigns, and brand recognition that drives customer traffic.
Franchises work well for newer operators: First-time restaurant owners or those entering unfamiliar markets benefit from franchise systems that reduce risk through proven concepts, established suppliers, and operational guidance. The training wheels justify the ongoing costs.
Converting offers complete creative control: Independent operators can modify menus instantly based on customer feedback, adjust pricing to respond to competition, source ingredients from any supplier offering the best quality and value, and rebrand entirely if market conditions change.
Converting eliminates ongoing royalties: Franchise royalties typically run 4% to 8% of gross sales, representing $40K to $80K+ annually on a million-dollar operation. This money goes directly to your bottom line as an independent operator.
Converting requires operational confidence: You need existing restaurant expertise to succeed without franchise support systems. You'll make all operational decisions, solve problems independently, and create your own marketing without corporate guidance.
Franchises charge substantial transfer fees: Taking over existing franchise locations typically requires $10K to $50K transfer fees plus ongoing royalties. Converting avoids these fees entirely.
Experienced operators like Nick and his wife with clear vision and restaurant backgrounds often prefer conversion for control and economics. They already know how to run restaurants, have developed their own recipes and systems, and don't need to pay ongoing royalties for support they won't use. First-time restaurant owners or those entering unfamiliar markets often benefit from franchise systems that provide structure, training, and ongoing guidance that independent operations lack.
How do asset sales work for restaurant purchases?
Asset sales involve purchasing physical assets and lease rights without buying the legal business entity, providing cleaner transactions and liability protection for buyers.
What transfers in asset sales: Buyers purchase specific assets including kitchen equipment, furniture, fixtures, smallwares, inventory, and potentially goodwill or non-compete agreements. The lease is assigned separately through landlord approval. Intellectual property like recipes or customer lists may or may not transfer depending on negotiation.
What doesn't transfer: The seller's legal business entity (LLC, corporation, etc.) remains with the seller and is typically dissolved after the sale. Buyer forms their own new legal entity for the operation.
Liability protection for buyers: Asset purchases don't transfer the seller's debts, lawsuits, tax liabilities, or other obligations. Buyers start with a clean slate legally, protected from previous owner's issues that could surface later.
Purchase price allocation matters for taxes: The IRS requires asset sales to allocate purchase price among different asset categories (equipment, goodwill, non-compete, etc.), which affects tax treatment for both parties. Work with accountants to structure allocation beneficially.
Simpler due diligence process: Asset sales often involve less extensive financial disclosure than entity purchases because buyers aren't assuming liabilities. Focus shifts to equipment condition, lease terms, and operational viability rather than deep historical financial analysis.
Faster closing timelines possible: Without complex entity transfer requirements, asset sales can close more quickly once lease assignment and equipment inspection are complete.
The Stoner's transaction was structured as an asset sale focused on equipment and lease assignment rather than extensive financial disclosures. This suited both parties: the seller got a quick exit without protracted due diligence, and buyers got the infrastructure they needed without inheriting business history or potential liabilities.
What equipment comes with a pizza restaurant purchase?
Typical pizza restaurant equipment packages include everything necessary for high-volume pizza production, though specific items vary by operation size and concept.
Pizza ovens are the centerpiece: Deck ovens, conveyor ovens, or brick ovens depending on concept and volume. Multiple ovens are common in high-volume operations to handle peak periods without bottlenecks.
Dough preparation equipment: Commercial mixers (often 60-quart or larger), dough dividers and rounders, proofing cabinets or racks, and dough sheeter/rollers for consistent crust production.
Refrigeration for ingredient storage: Refrigerated prep tables (makeline) with ingredient wells for assembly, walk-in coolers and freezers for bulk storage, reach-in refrigerators for backup ingredients, and under-counter refrigeration for beverages and desserts.
Prep and production equipment: Stainless steel prep tables and counters, three-compartment sinks for dishwashing, hand wash sinks throughout kitchen, food processors and slicers, portion scales, and cutting boards.
Hood system and fire suppression: Commercial exhaust hood over cooking equipment, fire suppression system meeting local fire code, and makeup air system if required by jurisdiction.
Additional operational equipment: Point-of-sale system (sometimes leased separately), delivery bags and insulated carriers, flour storage and sifting system, pizza screens or pans, serving utensils and tools, and potentially outdoor signage.
The Stoner's Pizza Joint came fully equipped for high-volume pizza operations with layout optimized for pickup and delivery. When evaluating pizza restaurant purchases, verify equipment age and condition (ovens older than 10-15 years may need replacement), ensure hood system and fire suppression are up to current code, confirm all refrigeration is functioning properly (compressor failures are expensive), and understand what's owned versus leased (POS systems, beverage equipment, and some ovens are often under lease agreements that you'll need to assume or buyout).
Do I need restaurant experience to buy a second-generation space?
While not legally required, restaurant experience dramatically increases your success probability. Second-generation spaces provide infrastructure advantages but don't eliminate operational complexity.
Infrastructure doesn't replace operational skill: Having a fully equipped kitchen doesn't mean you know how to manage food costs, control portions, train staff, maintain health code compliance, or handle the thousand daily decisions that determine profitability.
Cash flow management challenges surprise newcomers: Restaurants have unique cash flow patterns with daily cash receipts, weekly vendor payments, biweekly payroll, and variable monthly expenses. Poor cash management sinks otherwise good concepts.
Staffing presents constant challenges: Hiring reliable employees, managing schedules, handling no-shows and turnover, maintaining service standards, and dealing with personnel issues requires experience and emotional stamina that first-timers often lack.
Work-life balance expectations are usually wrong: New restaurant owners often underestimate the 60 to 80 hour work weeks, especially during the first year. The restaurant becomes your life, not just your business.
Thin margins amplify small mistakes: Restaurants typically operate on 3% to 8% net margins. Small errors in pricing, portioning, or waste management can eliminate profitability entirely. Experience helps you avoid costly mistakes.
The Stoner's Pizza buyers succeeded because they had restaurant experience and clear operational vision. They knew what they were getting into, understood the demands, and had systems to manage operations effectively.
If you lack experience but are determined to buy a restaurant, consider partnering with an experienced operator who can handle daily operations while you manage finances and growth strategy. Or start with a franchise that provides comprehensive training and ongoing operational support. Or work in restaurants for 1 to 2 years before buying to understand what you're really signing up for. Passion and capital aren't enough when you don't understand operational fundamentals.
How much does it cost to convert a restaurant to a new concept?
Conversion costs vary widely based on how extensively you're changing the concept and existing infrastructure condition.
Light conversions (menu and branding changes): Expect $15K to $40K for new exterior signage, interior menu boards, minor décor updates, new uniforms, initial inventory for new menu items, and pre-opening marketing. Equipment stays largely the same with minor modifications.
Medium conversions (concept changes within similar cuisine): Budget $40K to $100K for equipment modifications or additions, significant interior refresh, complete signage package, new POS system, updated lighting, and rebranding materials. This level often includes some construction but not major structural changes.
Heavy conversions (major concept changes): Expect $100K to $200K+ for significant equipment changes, full dining room renovation, bar additions, structural modifications, complete interior redesign, and extensive rebranding. At this investment level, you're approaching ground-up build-out costs.
Common conversion expense categories: Exterior signage and façade updates often run $5K to $15K depending on sign size and complexity. Interior painting, flooring, and décor updates range from $10K to $40K. Equipment purchases or modifications vary from $5K to $50K+ depending on concept changes. Permits, inspections, and professional fees (architects, engineers) add $3K to $10K. Initial inventory for new concept runs $5K to $15K. Pre-opening marketing and promotion cost $3K to $10K.
The Stoner's to Chicago-style pizza conversion was relatively light. New signage and branding, menu boards, recipe implementation, and minor equipment reconfiguration likely ran $20K to $40K total. This represents dramatic savings versus the $250K to $500K+ required for ground-up pizza restaurant build-out.
Budget conservatively and add 20% contingency for unexpected issues. Conversions almost always uncover problems (failed equipment, code compliance issues, structural surprises) that weren't apparent during initial inspection.