Thinking of cashing out? Before you list your restaurant, face these hard facts that kill 80% of deals:
1. Lease Issues
No long-term, transferable lease = no SBA loan. Month-to-month? Forget it.
2. Bank-Owned Equipment
If FF&E is financed, the bank gets paid first. Your valuation drops fast.
3. Landlord-Owned Equipment
Tenant improvement clauses often mean you own nothing but pots and pans.
4. Franchise Restrictions
De-branding wipes out goodwill. SBA appraisers value it at $0.
5. Location-Dependent Concept
No trademarks, manuals, or scalability? Buyers pay for the lease, not your “brand.”
6. Liquor License Problems
Non-transferable licenses slash value by 30–50%.
7. Hidden Liens
UCC liens from lenders or suppliers block transfers. Disclose early.
8. Working Capital
Banks demand 6–12 months of reserves. Can your deal absorb it?
9. Sales Freefall
Declining trends kill lending. Price realistically—or don’t list.
10. Wrong Broker
Hire a specialist who asks tough questions, not a generalist who sells hope.
Bottom Line:
Before listing, confirm:
✔ Transferable lease (10+ years)
✔ Clear ownership of FF&E
✔ No liens or license issues
✔ Stable sales
✔ Specialist broker
Selling a restaurant isn’t just numbers—it’s assets, compliance, and strategy. Face these truths now to avoid a failed deal.
Michael Shea represents the Tampa Florida Transworld office. In business since 2005, he has established a reputation as a trusted business broker across Florida’s key markets- from Tampa to Orlando, Melbourne, and more. Over the past two decades, Michael and his team have closed over $1 Billion in sold business volume and presided over more than 450 transactions. His credentials include the IBBA Certified Business Intermediary®, and most recently, the prestigious Certified Exit Planning Advisor® (CEPA) credential.