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Texas Restaurant Law

Category Archives: Contracts

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Can Texas Restaurant Owners Deduct the Costs of Repairs From Lease Rental Payments?

Posted in Contracts, Legislation, Liability, Litigation, Negotiation, Real Estate

Nearly all restaurant tenants face challenges with their lease at some point.  Often these challenges come in the form of needed repairs to the property caused by the landlord’s substandard maintenance of the property.  The landlord may delay making necessary repairs, make inadequate repairs, or even refuse to make some repairs. After haggling with the… Continue Reading

The Top 7 Things To Consider Before Buying A Restaurant

Posted in Acquisitions, Alcohol, Contracts, Corporate Entity, Employment, Intellectual Property, Liability, Litigation, Real Estate

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

What Is Restaurant Intellectual Property?

Posted in Acquisitions, Competition, Contracts, Employees & Waitstaff, Intellectual Property, Liability, Litigation, Negotiation, Vendors

At 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

How To Deal With Restaurant Partner Disputes

Posted in Commentary, Contracts, Corporate Entity, Franchises, Franchising, Liability, Litigation, Negotiation

There are many motivations for restaurant creation and investment. However, these different desires can lead to conflict, so how are restaurant operators, owners, and investors supposed to resolve these conflicts? This post answers that question, and it gives a game plan to operators, owners, and investors to deal with these inevitable conflicts. Step One: Avoid… Continue Reading

When To Terminate A Restaurant Transaction

Posted in Acquisitions, Commentary, Competition, Contracts, Franchises, Franchising, Liability, Litigation, Negotiation

Restaurant 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

The Absolutely Essential Issues In A Restaurant Lease

Posted in Acquisitions, Contracts, Corporate Entity, Franchises, Franchising, Liability, Litigation, Negotiation, Real Estate

Leasing 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, Vendors

We 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 Trends

By 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, Negotiation

Now 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

Restaurant Non-Competes: Are They Worth It?

Posted in Contracts, Employees & Waitstaff, Employment, Liability, Litigation, Recent Law Trends

A funny thing happened recently. When Lauren Drewes Daniels at The Dallas Observer featured TexasRestaurantLaw.com last week at this link, a controversy ensued between folks that commented on the article. The dispute involved whether non-competes were valid and enforceable in Texas. Apparently, it is a common myth that non-compete agreements are not enforceable in Texas,… Continue Reading

Is Franchising The Only Key To Restaurant Success?

Posted in Contracts, Franchises, Franchising, Legislation, Liability, Litigation, Negotiation

We talk a lot here about franchising and for good reason. After all, many restaurant owners make great money by developing or buying into a great franchise concept. However, some restaurant owners take a  different approach: they develop their own brand and remain the key figure in each additional restaurant. Stephen Pyles is one such… Continue Reading

5 Top Strategies For Protecting Your Restaurant And Personal Assets

Posted in Contracts, Corporate Entity, Liability, Litigation

How safe are the assets in your restaurants? Are you personally liable for your restaurant’s liabilities? These are two of the most common questions we get from our restaurant owner clients, so we thought we would share five of the top strategies we use to shield our restaurant owners from liabilities at their restaurants, which… Continue Reading

Is Your Restaurant Recipe Safe?

Posted in Acquisitions, Contracts, Franchises, Franchising, Intellectual Property, Liability, Litigation

Did 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 Estate

Co-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, Franchising

The 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, Liability

We’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

5 Ways to Avoid Costs of Acquiring Restaurants

Posted in Acquisitions, Contracts, Corporate Entity, Franchises, Negotiation, Real Estate, Vendors

All 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

Put More Money in Your Pocket: Perform a Lease Audit

Posted in Contracts, Franchises, Litigation, Negotiation, News, Real Estate

  Did you know that you have a 90% chance of overpaying operating costs (CAM, Taxes and Insurance) under your lease, if you fail to check the calculation for accuracy. This comes from the December 2009 edition of Commercial Tenant’s Lease Insider. Many landlords do not take the time to reflect tenant-specific exclusions, caps, etc…. Continue Reading

Partnership Mistakes and How to Avoid Them

Posted in Acquisitions, Competition, Contracts, Corporate Entity, Franchises, Intellectual Property, Litigation, Real Estate, Vendors

Nearly 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

Is Your Restaurant Business Down? 5 Things Not To Do

Posted in Contracts, Corporate Entity, Employment, Franchises, Litigation, Negotiation, Real Estate, Recent Law Trends, Vendors

It’s no secret that many restaurants are suffering from the current recession, which is hopefully going to end soon. As a result, many restaurant owners are faced with the dilemma of “who to pay” when there’s not enough funds to pay everyone. In situations like these, it’s easy to make a misstep. With that in… Continue Reading

5 Things Your Restaurant Insurance Won’t Protect You From

Posted in Contracts, Corporate Entity, Franchises, Litigation, Negotiation, Vendors

We all know that insurance is the best protection from most forms of liability in a restaurant. However, there are a variety of things that insurance doesn’t protect against. Here are five things often omitted from insurance coverage, and some solutions to this issue. 1. Creditors In General – Creditors come in a variety of… Continue Reading

Ten Keys to Negotiating Your Restaurant Lease

Posted in Acquisitions, Contracts, Negotiation, Real Estate

For 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