5 Questions Buyers Always Ask

1. What is the rent?

Generally, a well-run restaurant will have no more than 10% in rent as a % of sales

2. How much time is remaining on the lease?

More is better. 7+ years (lease term + option) and a flexible landlord are key

3. Who does the cooking?

If an owner does the cooking, the offer price will be discounted.
If the cooking staff has been on board for a long time, that’s a plus, especially if the owner is an absentee manager.

4. Is there seller financing available?

With bank credit so tight these days, sellers are providing the bulk of the financing…often 50% of the asking price or more.

5. Are there good books and records?

Good books and records will justify the asking price. Poor or non-existent books and records will cause a buyer to offer less.