I saw a listing and I would like to know the location. How do I obtain that information?

When you find a listing that you are interested in on our website scroll down to the Request Confidential Information section and complete the form. Upon receipt, one of our team members will send you a link to sign a confidentiality agreement online via zoho sign. If you are new to our system you will be asked to complete our screening questions which are included on our confidentiality agreement. Once we have received your signed document, the location name & address will be emailed to you. If you have additional interest and would like to schedule a Back of House tour or if you would like to receive documents that we have on file, please send an email back to our team member who sent you the information and let them know.

What is normally included in the purchase price of the restaurant?

Minimally, the lease, equipment and liquor license (if the location has a liquor license). But it also depends on the profitability of the business. If a business is turning a profit and the seller does not own another location with the same name & concept, the name, menu, goodwill, equipment, lease and liquor license are included in a sale. If the business is marginally profitable or not turning a profit the lease, equipment and liquor license, if applicable, is included in the purchase price.

If I am purchasing the restaurant with all cash, why does it matter what my experience is?

Even when using all cash to purchase a business we need to get the approval of the landlord to complete the sale. Landlord’s prefer experienced operators and some have minimal net worth requirements for a new operator. In some cases, they want the prospective tenant to own real estate as well. If you don’t have any experience in the food service industry an experienced partner can be added to the lease to create a more desirable operator for the landlord.

How much money do I have to put down to buy a restaurant or food service business?

At least 20% of the purchase price when using a lender. An all cash offer would require 10% down or a minimum of $10,000. If the seller is willing to do seller carryback financing which is rare, there would need to be a significant amount of cash as part of the transaction.

If the space doesn't come with a liquor license, can I buy one separately?

It is possible, however each city/county is different in the total number of licenses that they have available depending on the population. We can help you determine if a stand alone liquor license is available in your area.

Can you find me a restaurant?

We recommend that you sign up for our e-newsletter, which contains a list and links to our new listings. This will be emailed to you on a weekly basis. You can sign up for our e-newsletter on our homepage using the Buyer Registration button or you can go to the Buy section of our website, located at the top of our homepage and register there. Our new listings are sorted by Northern and Southern California in the e-newsletter. Here is a link: https://www.restaurantrealty.com/buy-a-restaurant/

The space I'm looking at is a non-confidential listing, do I still need to sign a confidentiality agreement?

Yes, all spaces listed with RRC require a signed Confidentiality Agreement. You will have the ability to receive a copy of the lease and any financial documents that we have on file for the business that are confidential. You will also have the ability to take a back of the house tour once you sign the confidentiality agreement. You may also receive confidential information during a back of house tour.

I have already driven by a location and I'd like to tour the inside, how should I proceed?

Please kindly respond to our team member who originally sent you the location information and we’ll get you set up to tour the space as soon as possible. If this is for a non-confidential listing, please go to the Request Confidential Information section on the listing page, complete the form & once you have signed our Confidentiality Agreement let us know that you would like to schedule a tour.

Are detailed financials available for the listing I'm interested in?

Some restaurant owners have very detailed financials and some may not. We should at least minimally have a sales report available for potential buyers. The reason for this is that some locations are doing well and are turning a profit, while others are marginally profitable or not turning a profit at all. We can sell businesses that are not turning a profit because many have a desirable location, sought after equipment or lease terms.

I have already filled out an NDA with you, why do I need to fill out another for a different space?

These are legal documents and require each unique listing number on them with your signature for our records. We do have a version on our website where you can write in multiple listing #’s numbers on one NDA. Here is a link: https://www.restaurantrealty.com/confidentiality/

Can I buy a restaurant without any restaurant experience?

Not typically, it mainly depends on the willingness of the landlord. Landlords want experienced operators who will be able to hit the ground running without any issues that an inexperienced operator may have.  If you don’t have any experience, adding a partner that you know who has experience is ideal to make your concept more attractive to landlords. The other option would be to look for a Franchise opportunity. Most have excellent training programs. If we have any Franchises available for sale you can find them by looking at the top left side on our listings page on where you see All Property Types. Click on the drop-down arrow, scroll down to Franchises for Sale and then select the search button. You can also narrow this down by selecting a County as well.

The business I'm interested in says Price Negotiable. How do I know what a starting price point is?

Due to the Coronavirus pandemic and how greatly this has affected many of the businesses that we represent, we have found that using Price Negotiable gives us the opportunity to have a discussion about a business’s performance both before and during the pandemic with potential buyers. Many were performing at high levels and were profitable. Then with the restrictions, these businesses could not maintain the same level of profitability. Once a potential buyer has had the opportunity to learn the overall picture of the business, they will have a better idea of what they would like to offer for the business.

What happens when "under contract" or "in escrow?"

We market our listings until the escrow has closed. We do this because many deals fall out of contract prior to escrow closing and would therefore become available again. There are many different reasons why a deal may fall out of contract. When this happens, we notify anyone who has previously signed an NDA on the location letting them know that the business is available again.

What inspections are typically done by the buyer when purchasing a restaurant business?

Many counties have required Change of Ownership inspections with the local Health Department that a buyer would want to utilize to see if any upgrades or repairs would be needed to pass the final inspection. Buyers may also want to bring in a contractor if they would like to renovate a space. The amount of time given for these inspections is determined in the contingency section in an offer to purchase the business.