We sell used restaurant equipment here at One Fat Frog, so of course, we like to help the start-ups, the first-time business owners, and the dreamers of restaurant gold. It’s just what we do. Of course, we also want you to have a thriving business, and if you’re looking at buying an existing restaurant, ask yourself the following question: why are they selling the business? Before you put some money down on the place, see if any of the following flags have been raised:
-Does the restaurant have any sort of existing liabilities? These could be anything. They could have health code violations, they could have unpaid overtime to their current employees, you could even have mistreatment of employees out there and someone could be gearing up for a lawsuit. If these exist, preventing issues is easy: purchase only the assets of the restaurant, like the equipment and the location, but form a new LLC. You can keep the employees; they just transfer to the new LLC, and everyone’s happy. You can even keep the name.
-Is there an existing lease on the property? You may have to get approval from the current landlord to take over the business in that location. There may be other provisions on there, and you avoid any sort of issues by contacting the property owner as soon as you start considering the place. That way, you can discuss any issues or questions long before the transaction is made.
-Is there a liquor license to be transferred? If there is, it can be done, but transfers of these licenses is heavily monitored. Different states may have different requirements and different wait periods before the liquor license can be transferred, and you should look into that because that means you may be waiting a while before reopening. If you’re in a business that doesn’t require a liquor license, then that works, but if it does, you should be cautious.
-How’s the restaurant equipment? Make sure you check that the refrigerators are cooling to the proper temperature, the ranges and ovens are reaching their peak heats, and your motors are all set to go, because if you don’t, it could hurt the value of the business and slow down the opening process. Of course, if your restaurant equipment is on the fritz and it’s time to get something else, you know who to call: your best friends here at One Fat Frog Restaurant Equipment where we’ll make sure you get what you need at a great price, with financing help, and a 30 day parts and labor warranty. And if you’re in Florida, we deliver to most places for free! Jacksonville, Tampa, Gainesville, Ocala, Lake City, Lakeland, Daytona, St. Augustine, and of course, our home area of Orlando all get free delivery.
Remember, owning a restaurant is a great business, and it can be incredibly lucrative. Just remember that, like any other business, it’s a business, and that means there are risks. Keep your eyes open, and good hunting!
One Fat Frog • 2416 Sand Lake Road • Orlando, FL 32809 • 407-480-3409