There are so many things to consider when buying a restaurant that we decided to break that list down to just seven issues. If you only look at these issues, you should avoid most of the big hazards when you buy your next restaurant. Now, this assumes that you have some idea of the restaurant… Continue Reading
Category Archives: Acquisitions
Subscribe to Acquisitions RSS FeedWhat Is Restaurant Intellectual Property?
Posted in Acquisitions, Competition, Contracts, Employees & Waitstaff, Intellectual Property, Liability, Litigation, Negotiation, VendorsAt TexasRestaurantLaw.com, we have covered “Who Owns Your Restaurant Name?” and “Is Your Restaurant Recipe Safe?” However, we have not previously discussed the many parts of restaurant intellectual property. This post shows some of the most critical pieces that encompass restaurant intellectual property. Your Name & Brand We all hear that branding is everything. Likewise,… Continue Reading
The Changing Nature Of Restaurant Real Estate
Posted in Acquisitions, Commentary, Franchises, Franchising, News, Real EstateFor those familiar with the International Convention of Shopping Centers (a/k/a “ICSC”), you probably received your copy of Shopping Centers Today (“SCT”), which is the monthly magazine that they publish on national real estate. For those who don’t know, ICSC connects nearly all retail operators, landlords, and brokers who are involved in real estate, and… Continue Reading
When To Terminate A Restaurant Transaction
Posted in Acquisitions, Commentary, Competition, Contracts, Franchises, Franchising, Liability, Litigation, NegotiationRestaurant transactions are similar to the old Kenny Rogers song, The Gambler – “You’ve got to know when to walk away, and know when to run!” Perspective is so important in general, and in restaurant transactions, you must know when to move forward on deals and when to kill them. But how do you determine… Continue Reading
Biggest Legal Causes Of Restaurant Failures
Posted in Acquisitions, Commentary, Franchises, Franchising, Liability, Litigation, Negotiation, Real Estate, Recent Law TrendsJust this week, two of my favorite restaurants in Dallas closed operations. This led me to consider the biggest issues I have seen that factored into a troubled restaurant. A few of these may not be a surprise, but you may be shocked at others. Consider this list of top legal reasons why restaurants fail:… Continue Reading
The Absolutely Essential Issues In A Restaurant Lease
Posted in Acquisitions, Contracts, Corporate Entity, Franchises, Franchising, Liability, Litigation, Negotiation, Real EstateLeasing is a big issue for restaurants. Almost all restaurants at least start out leasing their space. Often, restaurants are required to lease their space to capture the prime locations of a given area. For these reasons and many more, it is vital for restaurant owners to pay close attention to leasing terms. The following… Continue Reading
Can An Email Bind Your Restaurant Like A Contract?
Posted in Acquisitions, Commentary, Contracts, Employees & Waitstaff, Liability, Litigation, Negotiation, Recent Law Trends, VendorsWe all think of email as a convenience. The same is true for text messages. These are just easy ways to communicate. They don’t really mean anything. Right? Wrong! Email and text messages are some of the most dangerous tools created. They are powerful. They are permanent. And in Texas, they are binding. Don’t believe… Continue Reading
How To Spot Good Restaurant Investments
Posted in Acquisitions, Contracts, Franchises, Negotiation, News, Recent Law TrendsBy all accounts, 2013 should be a great year for the Texas restaurant industry. For just one example, click on this link, which is an article by Teresa Gubbins from austin.culturemap.com. According to the article: A report by the National Restaurant Association says that the Texas restaurant industry will lead the country in sales growth… Continue Reading
The Single Biggest Mistake Made When Selling A Restaurant
Posted in Acquisitions, Contracts, Liability, Litigation, NegotiationNow that we’re all stuffed and overweight after Thanksgiving, I thought that I would mention another type of over-doing it: your representations to a potential buyer when you decide to sell a restaurant. These representations are critical to the success of a sale, both before negotiations begin and after you close on the sale. With… Continue Reading
The Top 5 Considerations Before Buying A Restaurant
Posted in Acquisitions, Commentary, Franchises, Franchising, Liability, NegotiationDespite the “Great Recession”, the restaurant industry continues to thrive. One of the latest great examples of this is the expansion of Asian cuisine. For instance, a new franchise concept called Mama Fu’s is set to open 14 new restaurants in the Dallas area alone over the next several years, according to this article from… Continue Reading
Is Your Restaurant Recipe Safe?
Posted in Acquisitions, Contracts, Franchises, Franchising, Intellectual Property, Liability, LitigationDid you know that KFC uses two different companies to blend the herbs and spices that make up its secret recipe? One company blends part of the spices, the other blends the remaining spices, and a computerized processor mixes them together so that neither company knows the full recipe. Like the Colonel, you may have… Continue Reading
Restaurant Trade Fixtures And Equipment – What Belongs To You And What Belongs To The Landlord?
Posted in Acquisitions, Contracts, Liability, Litigation, Real EstateCo-Authored by Matt Sanderson & Lindsey Postula THE MYSTERIOUS TRADE FIXTURE What are trade fixtures? Trade fixtures are the equipment that a tenant uses to operate its business. Although they are not considered to be real property (which means they don’t fall into the definition of fixtures), they are generally attached to the leased premises… Continue Reading
How To Finance Your Restaurant Purchase
Posted in Acquisitions, Contracts, Franchises, FranchisingThe recent economic struggles have given rise to a host of financing opportunities, and you should consider them all when buying your restaurant. Traditional Financing It’s no surprise that you can go to a bank to finance a restaurant purchase, but which bank and what are your options? These are hard questions. Traditional financing is… Continue Reading
Which Restaurant Franchise Is Right: Fast Food, Fine Dining, or Somewhere In Between?
Posted in Acquisitions, Competition, Contracts, Franchises, Franchising, LiabilityWe’ve talked a lot about franchises in prior posts. Assuming you have decided that a franchise is in your future, how do you know which type is right for you? This question comes to us quite a bit, so here are some thoughts to consider in each of the common types of franchises: Fast Food… Continue Reading
To Partner Or Not To Partner: Top Things To Consider Before Bringing On A Restaurant Partner
Posted in Acquisitions, Corporate Entity, Franchising, Litigation, Recent Law TrendsMany of my clients think that partners and shared ownership are great. They are right, to a point, but there are often times that partners are more a pain than a benefit. With that in mind, I thought I’d share some of the benefits and drawbacks of partnering your restaurant business. Benefits of A Restaurant… Continue Reading
Can You Walk Your Restaurant Lease When Times Are Bad?
Posted in Acquisitions, Franchises, Franchising, Liability, Litigation, Real EstateMany restaurant owners think that the need to close a restaurant involves a lot of pain and headache from landlords among others. Certainly, that’s the case often, but there are some options that that may be available to make this less painful than necessary. As such, here are some things to consider if you think… Continue Reading
Is A Restaurant Franchise Right For You?
Posted in Acquisitions, Franchises, Franchising, NegotiationWe’d all like to become the next great franchise with the wealth and notoriety that goes with it. However, not all franchises are created equal, and even more often, a franchise itself is not even the right fit. New To Restaurants? If you’re not already a restaurant owner, the question is “to franchise or not… Continue Reading
5 Ways to Avoid Costs of Acquiring Restaurants
Posted in Acquisitions, Contracts, Corporate Entity, Franchises, Negotiation, Real Estate, VendorsAll too often the margins of restaurant acquisition require stringent cost control. To help, here are five things to keep those costs low when considering the purchase of a restaurant: 1. Assemble Your Team – It’s hard to decide when to get your team of counselors (like attorneys, accountants, appraisers) involved in a deal. If… Continue Reading
Partnership Mistakes and How to Avoid Them
Posted in Acquisitions, Competition, Contracts, Corporate Entity, Franchises, Intellectual Property, Litigation, Real Estate, VendorsNearly anyone who has been in business either knows of or at least has heard of the pitfalls of partnerships. However, a lot of people don’t know that you can be partners with someone and not even know it. You might say, “Funny lawyer. Who cares?” But you should care, and here’s why. Partnerships make… Continue Reading
Ten Keys to Negotiating Your Restaurant Lease
Posted in Acquisitions, Contracts, Negotiation, Real EstateFor the most part, restaurant owners lease their property, at least when starting out and often permanently. As such, negotiating a lease can be a stressful experience. To reduce some of that stress, we’ve put together the following Ten Keys To Negotiating Your Restaurant Lease. PRIMARY CONCERNS 1. Net vs. Gross Lease. Every lease is… Continue Reading
How To Turn Your Competitors Into Assets
Posted in Acquisitions, Commentary, Competition, Corporate Entity, Franchises, Negotiation, VendorsThe start of a new year often reminds us to try new things. I suggest that this year you try turning your competitors into assets. There are a variety of ways to do this, but this post will show one unique and forgotten strategy of achieving this goal. If You Can’t Beat’em, Join ‘Em Believe… Continue Reading
The Best of TexasRestaurantLaw.com 2009
Posted in Acquisitions, Alcohol, Commentary, Contracts, Corporate Entity, Employment, Franchises, Immigration, Intellectual Property, Legislation, Litigation, Negotiation, News, Recent Law Trends, VendorsWe couldn’t close out the year without a “Best of 2009″! Here’s the best TexasRestaurantLaw.com content of the year, based on your enthusiasm via comments, links, and retweets. We thank you all for your continued support! Let’s get started: Recent Nutrition Law Trends – This will likely be a continued source of legislation on… Continue Reading
How Joint Ventures Are Like The Grinch
Posted in Acquisitions, Contracts, Corporate Entity, Franchises, Litigation, NegotiationSince we are right in the middle of the holiday season, I thought I’d discuss the insidious nature of joint ventures and compare them to Dr. Seuss’s mean ol’ Grinch. Many people are astounded when I explain the many risks involved in joint ventures, and like the Grinch, they are to be avoided whenever possible…. Continue Reading
The Biggest Contract Mistake & How To Avoid It
Posted in Acquisitions, Alcohol, Commentary, Contracts, Corporate Entity, Franchises, Litigation, Negotiation, Recent Law Trends, VendorsThe ugly truth is that people make mistakes every day when they sign contracts for their companies. What’s worse is that many people don’t even realize that they are making a mistake. This particular mistake can cost your company thousands of dollars in legal fees. This mistake can cost you personally in legal fees and… Continue Reading