where should i list my business restaurant, lawyer, real estate

How do I find a restaurant for lease?

There are three basic approaches to finding a restaurant for lease. Numerous free and paid services advertise restaurants for lease and sale. Here’s a list of some popular sites that advertise properties for lease: If you are going to lease a restaurant, there is a 99.9% chance a commercial real estate agent or broker will represent the landlord.

Who should you work with when buying or leasing a restaurant?

Remember: Always work with professionals when leasing or buying a restaurant location. For any purchase of space, you’ll want to work with a real estate agent, lawyer, and, if possible, a restaurant consultant. Find out who to work with here. What Is a Lease Agreement?

What type of Business is best for a restaurant?

The type of business that is best for your restaurant depends on which how large you expect your business will be. For example, small mom and pop restaurants are probably best as sole proprietorships or partnerships.

Is it possible to buy a restaurant property?

The average restaurant owner can’t raise enough money to buy a property outright, considering how expensive it can be to start a restaurant in the first place. Remember: Always work with professionals when leasing or buying a restaurant location.

How do I advertise my restaurant for sale?

Marketing Your Restaurant for SaleDetermine your restaurant's key selling points.Set your price, and justify that price to buyers.Write an ad that attracts attention from serious, qualified prospects.Make a great first impression with buyers by preparing your restaurant for sale.More items...•

What type of business is a restaurant?

hospitality industryRestaurants, bars, and other similar businesses generally fall under the “food and drink” category within the hospitality industry, which falls under the broader service industry.

How do you determine the value of a restaurant for sale?

The Formula – Generally, the sale price is determined by taking net profit times a factor of 3 to 5. So if a restaurant realizes $100,000 in yearly profit, it's asking price should be between $300,000 to $500,000.

How do you choose a good restaurant location for your business?

10 tips for choosing the right restaurant locationCheck zoning laws. ... Think about your target customers. ... Consider foot and car traffic. ... Out of sight, out of mind. ... Keep accessibility top of mind. ... Weigh the pros and cons of costs for a premium restaurant location. ... Study space turnover. ... Avoid competition.More items...•

Why should a restaurant be an LLC?

Restaurants--and most small businesses, for that matter--should choose an LLC structure. Setting up an LLC protects you from personal liability. (If a customer suffers an allergy attack from your food, the lawyers can't go after your house.)

What type of business entity is best for a restaurant?

The Limited Liability Company (LLC) route is the best way to go. With characteristics of both a corporation and a partnership, LLCs offer tax flexibility, the ability to split the profits made in any way you like, and personal liability protection. The money you put into the LLC is the only amount at risk.

How much is a restaurant business worth?

According to recent industry data, restaurants overall sell for a median price of $150,000. However, restaurant prices vary widely, based on location and type, and overall startup costs will drive the price higher.

What is a good cap rate for a restaurant?

Capitalization rates for a restaurant operator's invested capital typically fall into one of three ranges: for an efficient, profitable operation with new equipment, good location, and expectations of strong annual growth in revenue, a capitalization rate of 13% to 19% is appropriate.

What is the average revenue of a restaurant?

The State of Local Restaurants 2020 report from Womply says that US restaurants brought in $1,350 in revenue on an average day, which is almost $40,500 monthly. And the 2019 Restaurant Success Report said that the average revenue for a restaurant less than 1-year-old is usually around $111,860.70 per month.

Why location is important for restaurant?

Location acts as an anchor point to your idea which helps you in sustaining in this competitive food market. In fact, it is the single most important thing that you can do for your food business. Location usually plays a significant role in creating brand preference and brand equity.

How do you evaluate a restaurant location?

Location is one of the most important factors in making or breaking a great business. The same holds true for restaurants....Key characteristics to look for in an ideal restaurant location:Easy access and visibility. ... Built out and developed area. ... Diversified mix of customers. ... High trafficked area. ... Solid demographic.More items...

Which of the following shall be considered while selecting the location for a restaurant?

When you are selecting a particular restaurant location, you need to assess the population base of that area. There needs to be enough people in that specific area to keep your restaurant busy. This is the reason that the site study of the location is of paramount importance.

What is appraisal contingency?

An appraisal contingency allows cancellation if the property appraises for less than the selling price. A financing contingency provides for cancellation when the buyer cannot secure financing. An inspection contingency allows cancellation when the seller refuses to correct defects found during the property inspection.

Why is it important to be aware of the condition of your property?

Being aware of the condition of your property, as contained in the inspection report, can help you during negotiations with a buyer. A buyer cannot as easily blind-side you with supposed problems when you know the condition of your commercial real estate .

What is the biggest challenge when selling commercial real estate?

As mentioned earlier in the guide, correctly pricing a property is one of the biggest challenges when selling commercial real estate. It almost always makes sense to hire a professional commercial property appraiser to help you set an asking price.

What can a broker do for you?

They can save you countless hours of managing the marketing of your property. A skilled broker will already have a list of potential buyers for your warehouse, office building, vacant industrial property, or other types of commercial real estate.

How much does a commercial real estate broker charge?

Commercial real estate brokers typically charge a 4-8% commission. For a multi-million dollar property, the commission is a hefty price that some owners are unwilling to pay. Typically, a broker will work with multiple clients at the same time.

What are the advantages of selling a commercial property?

Advantages of Selling “By Owner”. Privately selling a commercial property has the potential for the owner to pocket the most amount of money. Without hiring a realtor, 4-8% of the purchase price can be saved. A sale ‘by owner’ can be the best choice if the seller knows a potential buyer.

What are the advantages of working with a commercial real estate broker?

A commercial real estate broker can help you put together a comprehensive marketing plan that will expose your property to the right potential buyers. They can save you countless hours of managing the marketing of your property.

What is the first business?

A common "first business" for many people is the purchase and operation of a restaurant. There are thousands of such businesses in the average city, the variety of service and pricing is immense, and it lends itself well to the entire family becoming active in the business.

Is it hard to start a restaurant from scratch?

To start from scratch is even more difficult, requiring the purchase of the thousands of tools and items needed for a successful restaurant ( from silverware to cooking utensils, from napkins to tablecloths, etc.) For that reason, most people buy an existing restaurant rather than begin their own, though they often alter the methods and look ...

What is a signage clause?

Signage clause: to ensure you have access to public visibility for your restaurant. Option to renew clause: allowing you to renew when the lease is up. Review the termination clause.

What happens if your rent is below market?

Your rent is below market and your landlord would prefer to have a new tenant to earn a higher rate. Other tenants in the building may be expanding and they have been offered the space. Your landlord is unhappy with you or your business and would prefer to have a new tenant in your space.

How long does a commercial lease last?

Commercial landlords tend to follow either a 1-2 year or 3-5 year lease agreement, and in hot markets they will likely not waver from their agreements. You may, however, be able to negotiate an option to renew that will allow you the opportunity to continue to extend your length of time in your space.

What do you need to know about external signage?

You’ll need to know where you can display external signage, and whether there are any limitations on renovations. Your external facade signage will need to comply with municipal codes, ordinances, and all regulations in your lease agreement.

What is a party responsible for paying utility services?

Party responsible for paying utility services. Party responsible for partial and substantial damages due to disaster. Conditions under which the landlord can enter to repair, inspect, or examine the property. Termination agreement (early termination and breach due to default, bankruptcy, etc.)

What is business plan and budget?

Business plan and budget. Paperwork proving that your business is a corporate entity, limited liability company, general or limited partnership, etc., and names and information of any partners, directors, etc. Your landlord will be more interested in your personal credit than your corporate credit.

What are the disadvantages of commercial property?

Disadvantages. You may need to compromise on location; most popular, high traffic commercial properties are not for sale. As the owner of the property, you’ll be responsible for maintenance and repairs. These costs can add up over time and put a strain on your business if you’re not doing well.

What is a sole proprietorship?

Sole proprietorship is one of the most popular business types in the foodservice industry, and it's when a business is owned by a single individual. Sole proprietorship has a simple structure, and it's common among small restaurants and family-owned businesses.

What are the downsides of opening a cooperative?

Here are some of the downsides of opening a cooperative. Success depends on member's involvement and cooperation. As a result, cooperatives can suffer from slower cash flow since a member's incentive to contribute depends on how much they use the cooperative's services and products.

Why are cooperatives more collaborative?

Because of the ownership structure, cooperatives are more collaborative than other types of businesses. Cooperative business structures are common in food production, farmers markets, or grocery stores, and less common in traditional foodservice businesses.

What is an LLC?

Limited Liability Corporations (LLC) A limited liability corporation, or an LLC, is a legal structure that combines the benefits of a corporation and a partnership. One of the main benefits of an LLC is that the business is an independent entity.

What is a cooperative business?

Cooperatives, also known as co-ops, are businesses that are formed when multiple people with similar professional goals decide to start a business. Cooperatives do not have one single owner, instead each member owns a portion of the business, and, as a result, each member has a say in how the business is run. Because of the ownership structure, cooperatives are more collaborative than other types of businesses. Cooperative business structures are common in food production, farmers markets, or grocery stores, and less common in traditional foodservice businesses.

What is a C corporation?

A C corporation is an independent entity that is taxed separately from its owners. This type of business is made up of different shareholders which are given stock when they invest. This type of ownership structure typically isn't viable if you're just opening one restaurant location due to the amount of effort, paperwork, and money that's involved. Additionally, according to regulations, C corporations must have assets of $10 million or more, which is unlikely for new restaurants.

How does each partner contribute to a business?

Each partner contributes to the business through money or expertise or connections and shares profits and losses. Similar to sole proprietorships, the business isn't a separate entity, and the owners file the business's taxes when doing their personal taxes.

Seller Representation for businesses & real estate

Restaurant Realty has sold and completed leases on over 1,400 transactions since 1996. If you are looking to sell your restaurant, bar or club we have the expertise and powerful marketing program to get your restaurant sold/leased.

Lease Renewal Representation

Many restaurant owners have developed successful businesses, only to have a lease period and options expire. Restaurant Realty can work with existing restaurant, bar and nightclub owners to sign a new lease with extensions.

Sales Packaging

Restaurant Realty Company works with business owners to package their restaurant business for sale. We know everything you need to get your business ready for our marketing program. Our database exclusive to the California restaurant industry is bigger than any other broker in California.

Restaurant Valuations

Since inception Restaurant Realty Company has completed over 4,500 valuations, most of which are Business Owners that are looking to sell. Sellers that are looking at selling a restaurant often times approach us to evaluate a business and provide feedback on price.

How long does it take to lease a restaurant?

Give yourself more time than you think you need. A good rule of thumb is six months to find a location, sign a lease and, ...

What to do when you see a restaurant?

If you view a restaurant that is currently open for business, don’t ask any employees or neighbors’ questions. Act as a customer and order something to eat or drink to view the interior. You will need to schedule a meeting to see the kitchen and areas not visible to a customer.

What does "mise en place" mean?

Getting your Mise en Place. This French term ( pronounced meez-on-plahss) means “everything put in Its place.”. Before starting your search for a restaurant location, it’s vital to put everything in its place.

How much of your gross sales should be occupancy?

The general rule of thumb is your total occupancy cost (rent and additional fees for property taxes, insurances, etc. ). It should not exceed 6-10% of your gross sales. The numbers that are right for your business may be lower or higher, depending on other factors.

What is driving the neighborhoods that fit your concept?

Driving the neighborhoods that fit your concept is a great way to learn the market and determine important factors such as traffic patterns and which areas attract the most visitors.

When do you receive keys for a vacant property?

If the vacant space is vacant and the landlord is not responsible for any work before delivering the premises, you may receive the keys when you sign the lease. If the premises are delivered later after the landlord completes the landlord’s work, a Letter of Lease Commencement defines the lease commencement date.

Is a LOI binding?

Assignment Rights. Landlords Delivery Condition. In most cases, the LOI is non-binding on either party and used as an outline to prepare a lease. “WARNING: Until you and the landlord have signed binding the lease, the landlord can lease the space to another party.”.

What is an adjustment back to income for those owner-benefit expenses that will go away?

An adjustment back to income for those owner-benefit expenses that will go away—they won't necessarily be expenses to the new owner as well. An addition to expenses for owner-benefit costs that will require the new buyer to increase expenses, such as that owner managed the business and buyer will have to hire a manager.

Why are contractual agreements not like real property?

They aren't like real property because they can contain guarantees of volume and existing client/customer base demographics. These can't be addressed in a standard commercial real estate purchase document.

What is operating business?

An operating business is an entity all its own. Jim Kimmons wrote about real estate for The Balance Small Business. He is a real estate broker and author of multiple books on the topic. Selling a working business requires a very different approach to valuation, especially when the real estate is included.

What is a cash flow analysis?

Any good business broker will require a cash flow analysis as one of the most important financial documents. Adjustments to the value of the business are made based on items in the cash flow, including: Detailed spreadsheets of all income. Detailed listings of all expenses. What expenses are actually going to the benefit of the owner.

Should real estate professionals be involved in brokerage?

Most real estate professionals shouldn't be engaged in the brokerage of operating business enterprises unless they have the experience and expertise to do so. A far better approach would be to partner with a business broker who doesn't do real estate brokerage. It will be a mutually beneficial relationship, with each of you bringing your own maximum experience and value to the client.

Should buyers adjust their valuations?

Buyers should adjust their valuations of a business downward if the selling owner also managed the business due to the necessity of hiring a manager at market salary. They should likewise adjust for any other costs the previous owner didn't have to spend on but that the transition will require.

Can a business owner sell both real estate and close down a business?

A business owner who owns the property will want to either close down the business and sell its real estate or sell both at the end of the day. Agents and brokers are often tempted to list both together, but that can be a mistake without a full understanding of all the intricacies involved.

What is continuous operation?

If the landlord requires continuous operation, meaning the tenant is required to operate its business in the leased premises continuously throughout the term of the lease, there should be exceptions for employee training, renovation, restoration, repair, maintenance and holidays. 7. Operating Expenses.

What is landlord work?

Landlord's Work. The improvements to the premises that the landlord constructs must be specified in detail. Terms such as "grey shell" or "white shell" are not sufficient. The specifics of what additions or improvements will be applied to the space should be clearly outlined.

What is the best way to protect a business from personal liability?

1. Tenant Formation. Form an entity that shields individuals from personal liability—for instance, a corporation or limited liability company—even if the business is run by one or two individuals or spouses. That entity should sign the lease. 2.

What are the obligations of a landlord?

The landlord should be obligated to operate, repair and maintain the building in a first-class manner and in conformance with all applicable laws, rules, regulations and ordinances. In all events, the landlord should not impair the visibility, access or use of premises. 15. Assignment.

When should a tenant measure the premises?

Measure the Premises. The tenant should reserve the right to measure the premises after the landlord's work is completed , and adjust proportionate share of common expenses accordingly. The basis for measurement should be specified.

Should a tenant receive an annual statement of operating expenses?

The tenant should receive an annual statement of the operating expenses with a right to conduct an audit. If the tenant discovers errors, the landlord should reimburse the tenant, and if the errors are above a certain percentage, the tenant should also be reimbursed for the cost of the audit. 10. Base Year.

Can a landlord impair access to premises?

In all events, the landlord should not impair the visibility, access or use of premises. 15. Assignment. Assignments of a lease, whereby all rights that a lessee or tenant possesses over a property are transferred to affiliates, franchisees or franchisors, should be permitted without landlord's consent.