Rebels Group of Restaurants -Steps to Selling a Restaurant

Selling a business, especially a restaurant is not as easy as it seems and most people find it difficult not knowing how to go about it. The end result is targeting unprofessional people who just waste time and the real buyers are nowhere to be seen.

The crucial aspect of selling a restaurant is effective advertising.

Many sellers think that the tease strategy of providing less information gets people to call or show interest, whereas buyers are more apt to call if more information is given about the restaurant for sale.

Here are some quick tips that will stand the seller in good stead:

Pricing the price point is important and pricing the restaurant reasonably is important. Underpricing is as dangerous as overpricing. High pricing will keep the restaurant longer in the market and this is not good as there would be speculation among people as to the reason why the restaurant is not selling.

Another problem we see is that when people are looking to sell their restaurants a lot of owners tend to neglect to keep the restaurant in perfect shape. By making sure, your restaurant is always sparkling and all visible (especially) and non-visible repairs have been made. This way if a Maintenance Buyer comes to see your place of business he won't be put off and leave.

Now here is an area where a lot of restaurant owners really fall short… the businesses paperwork. You must keep all your paperwork including your lease, profit and loss statements, and anything that is pertinent to your business. Having all your paperwork close by, will make it a lot easier to sell the restaurant. Remember you must make sure to get a signed Non-disclosure agreement from the buyer before you reveal anything confidential.

Advertising- Advertising your restaurant takes serious planning and my advice for you is to hire a restaurant consultant who is experienced in the field or a real estate agent who has a few years under his or her belt in selling restaurants for clients. Once again the more qualified leads you have the better your chances of selling quickly.

Purchase agreement – Keep your purchase agreement close by in case of an immediate sale, this will help to avoid last minute confusion. Don’t worry you can modify it once the sale goes through.

If leased- Having your Transfer of Lease for the premises is the first thing to do even before you start advertising. So check with the lessor if the restaurant lease can be transferred to the new buyer. You don’t want to find out that the transfer was not authorized by the landlord and then you are stuck waiting.

Agreements – Everything related to the restaurant sale and terms should be in writing. When selling a restaurant, it is of the utmost importance to consult experts in the area and draft an agreement. This way you have all the conditions for the sale, which is then signed by both the parties, this will help to avoid any problems in the future, such as lawsuits.

Initial deposit upon reaching an agreement with the buyer, it is a good practice to take an initial deposit of some kind or use an escrow service to hold the deposit until everything is finalized.

Understanding the buyer – Study your buyer, make sure that you are selling to someone who is serious. This way you are not releasing delicate personal information. Ask about his financial background and business interests.

Using this information coupled with the right advertising, the success rate of selling the restaurant increases exponentially. Before deciding on selling a restaurant, consulting with professionals is extremely important to get a fair idea on all the security agreements and notes that need to be prepared.

Rebels Group of Restaurant

Restaurant Consulting and Management

Info@alter-eatgo.com