You regularly walk into the local snack bar for a fries with, a croquette sandwich or a bear claw with peanut sauce. As you wait for your order on one of your visits, the owner tells you he is putting his business up for sale. At night, you find it hard to fall asleep. You have been dreaming of your own business for years; is this your chance? Ideally, you'd like to close the deal right away the next morning, but you'd better figure a few things out first. In this article, you'll find out what to look out for if you want to take over a snack bar.
First of all, who owns the business and does he also own the property? Or does he rent it and from whom? What does the lease agreement look like and how long does it last? What is the condition of the premises? Are there any visible or invisible defects and will they be fixed before you move in? Or do you have to do that yourself? Is the purchase or rental price realistic? Does the current owner have debts or obligations to third parties, such as suppliers? If so, does the seller expect you to take them over from him? Before you responsibly take over the snack bar, you must have answers to these questions.
If you plan to be open seven days a week, you will need staff. Do you need to look for employees or can you take over from the current owner? If you are going to continue with the current staff, be well informed in advance about their rights and obligations. What does their contract look like? When did they receive their last salary and how many vacation hours do they have left? Are there any commitments regarding pension accrual or salary increases? Ask the (accountant of the) vendor to put the most recent information in black and white, so you won't have any unexpected expenses or other surprises.
When taking over a catering business, you often also take over goodwill (the invisible added value of the business) and inventory. Think of (kitchen) equipment, furniture, crockery, glasses and cutlery and stock. Ask the current owner for a complete inventory list, including brand, type number and year of purchase of valuable items such as machines and electronics. Then insure the inventory at purchase value and not at current market value. If something breaks, you can quickly purchase a new one.
Most insurance policies contain a clause, that electrical installations in catering establishments have to be inspected at least every five years. If your snack bar is hit by fire without an inspection having been carried out (in time), it could mean that the insurance company will not pay you the damages. In addition, the Occupational Health and Safety Act requires you, as a catering entrepreneur, to offer your employees a safe working environment. That is why the Occupational Health and Safety Act sets inspection requirements for your restaurant's electrical equipment. In this article you can read more about inspections of electrical installations.
A number of insurances are necessary for your snack bar, some are recommended. Ask what insurance policies the current owner has, check that they are current and the amounts insured are correct. Maybe you can take them over from him? Involve an insurance expert so you can see if any insurance is missing before you decide to take over the snack bar. See what insurance policies you need before opening the door of your own catering business here.
If the rental property in which your snack bar sits gets damaged, the owner is probably insured for that. He will (have) the premises repaired, but will that also apply to the adjustments and renovations you have made to make the snack bar to your liking? Or does the landlord expect you to provide a new display case, new furniture or new kitchen fixtures yourself? Are you responsible for repairing broken glass or the landlord? Do not put your signature until you have read the lease carefully.