Atlanta Restaurants For Sale

There are many elements to purchasing a restaurant.  We Sell Restaurants has the experience and knowledge to assist with every aspect of the transaction. 

Lease

We Sell Restaurants is familiar with the requirements of the landlords and can help you pull together the right package to position your concept for success.  This can include any or all of the following elements:

• Lease Application
• Business Plan and Pro Forma 
• Personal Financial Statement 
• Resume on Key Individuals

A typical lease is referred to as a Triple Net Lease. This means the lessee is required to pay all the landlord’s expenses to maintain the property (Taxes, Insurance and Maintenance). This is paid over and above the base rent and can include items like, property taxes, insurance, landscaping, heating and air conditioning, exterior walls, roof, hot water heater, ceilings, plumbing, electrical, and parking lot.  Every lease is different.  Buyers should be familiar with the terms of the lease and carefully read and understand their requirement under the lease. 

Liquor License Transfer

Georgia

Liquor licenses in the state of Georgia are non-transferrable.  New owners must apply for a liquor license under their own name.  There are firms known as liquor license facilitators that can assist in this process.  In addition, attorneys familiar with Georgia liquor license laws can legally allow you to operate under the existing owner’s license for a short period of time with a mechanism called a Management Agreement.  This is part of the closing process and should be fully discussed and understood with your legal counsel before a closing takes place and any operation involving liquor, beer or wine service transfers. 

Florida

Liquor licenses in the state of Florida do transfer with the restaurant.  In addition, licenses can be purchased in the state of Florida.  There are multiple liquor license types in Florida.

·         2COP licenses refer to Beer and Wine Service

·         SRX licenses are for Full Liquor Service but require certain seat and parking requirements of the restaurant

·         4COP-3PS are for Full Liquor Service and allow the operation of a package store but do not have seat and parking requirements for a restaurant.  These are available for purchase separately from a restaurant.

Agency Relationship

Georgia

We Sell Restaurants has a dual agency relationship with our Sellers and Buyers in the state of Georgia.  In serving as a dual agent, the Listing Broker is representing two clients whose interests are or at times could be different or even adverse.  As a Listing Broker, We Sell Restaurants will disclose all known adverse, material facts relevant to the transaction and actually known to Listing Broker to all parties in the transaction, except for information made confidential by request or instruction from either client, and which is not otherwise required to be disclosed by law.  Our contracts and processes are specific to a restaurant sales transaction.  We Sell Restaurants encourages Buyers to obtain independent legal and accounting advice.

Florida

We Sell Restaurants serves as a transaction broker in the state of Florida.  As a transaction broker, We Sell Restaurants, Inc. and its Associates, provides to you a limited form of representation that includes the following duties:

1. Dealing honestly and fairly;

2. Accounting for all funds;

3. Using skill, care, and diligence in the transaction;

4. Disclosing all known facts that materially affect the value and are not readily observable to the buyer;

5. Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing;

6. Limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, of the motivation of any party for selling or buying property, that a seller or buyer will agree to

financing terms other than those offered, or of any other information requested by a party to remain confidential; and

7. Any additional duties that are entered into by this or by separate written agreement.

      Limited representation means that a buyer or seller is not responsible for the acts of the licensee. Additionally, parties are giving up their rights to the undivided loyalty of the licensee. This aspect of limited representation allows a licensee to facilitate a real estate transaction by assisting both the buyer and the seller, but a licensee will not work to represent one party to the detriment of the other party when acting as a transaction broker to both parties.

Due Diligence and Inspection Period

Buyers have a period of time under the contract to conduct due diligence on the transaction.  This includes any books and records inspection, equipment inspection and lease review.  The due diligence period is set as part of the contract terms.  We encourage you as a Buyer to thoroughly check the equipment and premises including the exterior (roof and parking lot).  Should there be a defect, the contract allows for negotiation for satisfactory repairs prior to closing or withdrawal of offer.  We Sell Restaurants can provide you with firms that conduct inspections and provide estimate of costs for repair.  Buyers should also be aware of the lease terms to understand who is responsible for building repairs outside of furniture, fixtures and equipment to operate the business.

Financial Due Diligence

All financial due diligence should occur during the due diligence period. We Sell Restaurants will facilitate all requests for information you may require including, franchise documents, financial statements, sales tax receipts, point of sale print outs or more.  Buyers should seek the guidance of a certified public accountant familiar with the restaurant industry in their due diligence. 

Asset Sales

Restaurants listed as “asset sales” generally do not have books and records for review and are being sold on the basis of their asset value rather than on cash flowing being produced from these assets.

Permits and Licenses

All restaurants are transferred to the seller in compliance with all local licenses.  The Buyer is responsible for verifying whether they need additional or revised permits and licenses to operate the business. You will be provided with a checklist of times that should be completed prior to the sale.  

Representations and Warranties

The Seller represents and warrants certain things about the business you are purchasing which include: Title, Ownership and Authority, Organization Standing and Qualification, Taxes are current, Liabilities and Liens are satisfied,  Licenses are valid, No Litigation is pending, Equipment is in working condition, Financial Information is fair and accurate, No Hazardous Materials are present, Employment matters are in compliance with Federal and State law, No Bankruptcy, Certificates and Permits of Occupancy are valid, No other person has a Pre-Existing Right to Acquire,  No Pending proceedings that could affect ingress/egress, Service Contracts provided to Buyer, Zoning is legal and No Condemnation is under way.  Your attorney can guide you in understanding the Representations and Warranties.

Loans and Financing:

SBA Loans

In today’s credit challenged environment, SBA financing is a difficult though not impossible task.  We Sell Restaurants can tell you which restaurants have been pre-approved for SBA lending which means the business qualifies.  A Buyer must also qualify.  The lender is looking for:  strong credit, 15% - 20% down payment and restaurant experience.  The SBA lender will want to see the source of the cash you invest in the deal AND want to take a second mortgage on your home.  The SBA process is time consuming and detailed.  For sellers, the most important elements of a contract are time and money.  If two offers surface at the same time – one with SBA funding and one without, most sellers will opt for the one without as delays are customary.   Plan on a minimum of four months to close an SBA loan.

Seller Financing

Many sellers, when faced with a strong candidate, good experience and a healthy credit history and down payment will entertain some seller financing.  We recommend you put your best offer together along with a strong escrow check and see what the Seller says. The Seller will want security for the loan (lien on the equipment and assets) as well as a personal guarantee.

Escrow

We Sell Restaurants has a firm policy of $10,000 in escrow submitted with the contract.  This demonstrates the seriousness of your commitment to the Seller.  Remember, to the seller, two things are important – time and money.  How much he’s getting and how quickly he’s getting it.  The strength of your contract increases with a higher escrow and quicker time to closing.