It`s the deal breakers that come at the last minute to destroy a contract. Don`t let it happen to you. No matter who prepares the agreement, these are the ones that must contain, can not forget, better remember, make sure that you, elements that should be part of an agreement. A clear understanding of the fiduciary deposit is another point that keeps the agreements on track to close instead of failing when selling a restaurant. For those who sell a restaurant, you may have forgotten that your restaurant broker in a hurry asked you, called you, wrote you and chased you for a precise list of appliances. What he had at the end may not look much like what`s in the store today. Why does it matter? When it comes to an asset purchase agreement, the buyer keeps you on the list of equipment attached to the contract. The same applies to all other costs associated with the agreement. It is our “no surprises” rule that comes into play. Neither the buyer nor the seller had to discover, at the time of the transaction, something that was not known at the beginning of the transaction. This means that legal fees must be set as part of the agreement.
The same goes for transfer fees when you buy or sell a franchise restaurant. Who`s responsible? What`s the amount? When do we have to pay them? It is customary for the buyer to produce the sales document, but there is no reason why the seller should not receive any benefit in providing the first design. Do you want more help selling a restaurant? Contact us on this link for a free, non-binding review. The list of equipment reflects the assets transferred from seller to buyer and must be correct, or you will be held responsible if you sell a restaurant. As a buyer, you will probably also buy the property or at least accept a rental agreement. Many of these agreements involve the transfer of a lease and/or an agreement for the purchase of a property. Each restaurant has a kind of deposit ranging from a rental deposit to a supply deposit for the energy company. As a general rule, owners will never unlock these deposits, but will transfer them to the buyer as part of the lease. Is this the buyer`s asset? This should not be the case unless it is set in advance.
Make sure that any agreement for the sale of a restaurant contains a clear definition of who these deposits belong to. It contains the terms of sale contained or not contained in the sale price, as well as optional clauses and guarantees to protect the seller and buyer after the transaction has been concluded. Owners often apply a transfer fee to transfer a lease to a new party. These can range from 500 to a percentage of the purchase price, a surprisingly high number. Who will pay – the buyer or seller? If this is not defined in the sales contract, it can derail a deal. Often, an owner will not go to a transfer until the tax is paid. The result is delays. Delays mean that there is no trade. Don`t let yourself go through that. Make sure your agreement for the sale of a restaurant includes exactly who pays. Be clear in the language that the seller will pay 50% and that the buyer will pay 50%, or the buyer will not pay more than $1500 in transfer fees, but especially in a language that deals with this problem.
An agreement between parties who buy and sell a restaurant should focus specifically on how inventory is managed. If you want it to be included, it should have some language around this function, as the seller agrees to leave $3,000 worth of fresh and usable inventory handy to be determined by the physical number. The most common language says: “All amounts currently deposited for the benefit of the company for provident services, leasing, insurance, etc., are and will remain the exclusive property of the seller and will not be included in this transaction.” If you sell a restaurant and the agreement does not say such a thing, a buyer may challenge you that, in fact, the assets of the business that should serve the buyer.