Operating a successful restaurant in Florida requires a combination of skills, resilience, and hard work. While buying an existing restaurant allows a new owner to dodge the start-up phase, it is vital to identify whether a seller’s offer is as good as it appears to be.
In this article, you will a list of essential questions to ask before buying a restaurant in Florida.
What to Ask Before Buying a Restaurant in Florida – In Detail
Sellers often attempt to make an offer gleam by showing only the benefits of a restaurant. While this is not necessarily a negative factor, buyers must pay attention to determine whether the business offer is viable.
The due diligence process is mostly conducted through documental research, but asking the right questions is a key strategy. A seller’s unwillingness to respond when questioned about certain aspects may indicate a possible red flag.
The following list contains questions that will help prospective restaurant buyers to avoid unexpected issues:
- What is the reason for selling?
- Did the restaurant have past owners? Who were they?
- Are the premises leased?
- Are the premises part of the assets included purchase agreement?
- Which insurance policies does the restaurant have in place?
- Are there any outstanding litigations against the restaurant?
- How many employees does the restaurant have?
- Will key personnel stay in the company once the restaurant is sold?
- Are key employees leaving for a specific reason?
- How many contractors work with the restaurant? What is the arrangement for the provision of goods or services?
- What are the zoning rules/land use restrictions affecting the restaurant?
- What is the level of competition in the area?
- Who were the past competitors? Are new competitors rising?
- Is the restaurant area subject to parking issues?
- Is the restaurant area subject to vandalism or crime in the neighborhood?
- Have you observed significant changes in the restaurant area through the years?
- Have the zoning rules changed in the restaurant area?
- Was the restaurant area subject to construction issues or road changes?
- What is the quality of the relationship with neighboring businesses?
- Is the restaurant business compliant with the applicable tax requirements?
- Is the demand for the goods or services provided by the restaurant increasing or decreasing?
- Has the restaurant received complaints from EEOC or any other agencies?
- Has the restaurant gone through tax audits in the last five years?
- Did the customer base change in the last years?
- Was the customer base affected by changes out of business control? (e.g., closed mall, change in demographics, etc.)
- Did the restaurant receive other purchase offers in the preceding years?
- Are there any pending offers for the restaurant?
- What are the main methods used to advertise the company and attract new customers?
- Does the restaurant have a strong brand? How does the company protect its intellectual property?
As expected, this is a non-exhaustive list of questions. Consult with an expert business purchase attorney to help you in this crucial process and ensure a successful outcome for the transaction.
Do You Want to Buy a Restaurant in Florida? – Immediately Seek Expert Legal Guidance
Waste no time with uncertainty. Contact Attorney Romy B. Jurado today by calling (305) 921-0976 or emailing [email protected] to find the best business purchase strategy to acquire an existing restaurant in Florida.
