How to buy a fast food shop?
The fast food industry in the UK has grown quite rapidly over the past decade. With the evolving lifestyle, the consumers want quickly prepared meals which are budget friendly. Fast food shops across the country are catering to this market.
This guide will tell you all you need to know about buying a fast food shop.
You will not need any qualifications to own a fast food shop. However, it will be hugely beneficial if you have knowledge of the industry. Particularly if this experience is in managing the same type of fast food shop which you want to buy.
Another key essential skill in order to be successful in this industry is being great at time management and employee management skills. You and your staff will have to be efficient, quick, and have great customer service skills. A great way to keep your employees motivated is to incentivise.
You will be busiest in the evening and the weekends and will have to spend a lot of time on your feet. The industry is quite competitive precisely because there is a lot of money to be made. So you will have to be persistent and keeping motivated is the key.
Quick, cheap and easy
Today’s consumers want quick, cheap and easy option which they can grab on the go due to the modern lifestyle.
Health has become a major topic of conversation in the fast food industry. This is influencing a lot of fast food shop owners to rebrand themselves as the “healthier option.”
Further, there are a lot more vegan fast food shops opening up for customers to choose from.
What to look for in a fast food shop
When it comes to buying a fast food business, it is quite different from another type of business.
The primary factors are the location, footfall, parking and demographics of the area where the shop is located. You also want to take a look around the neighbourhood and check out the competitors.
Further, you should inspect the equipment and assess whether you will have to renovate or buy new machinery.
The curb appeal of the shop is another important aspect which will draw customers to the shops. So inspect the building, frontage and staff areas to find out whether any renovations are need
The business will need a trained staff, so you should consider keeping the staff to see how they work under your ownership. If you start hiring from scratch it can get difficult and time consuming.
Licenses and permission
As a fast food shop, you will be handling meat, fish, egg and dairy products. Due to this you will be inspected and may need food premises approval from the local council.
You will also need to get Employers Liability Insurance, which will cover you for the health and safety of your employees.
Further, you will need Public Liability Insurance which will cover you for any on site injuries and product liability.
Additionally, you will need a food rating certificate to show you are compliant with hygiene laws. You will get impromptu inspection to inspect how you are handling the food, storing and keeping it safe as well as physical conditions of the building.
The process of due diligence is one that provides a thorough investigation into a proposed investment transaction. It means you check the investment worthiness, and assess the full claims made by the owner. This check is usually performed by a solicitor and accountant who act on behalf of the buyer. A large portion of due diligence will involve checking financial statements and accounts.
Click here to find more about due diligence.
If you buy wisely and do thorough research of the background and potential of the business which attracts your interest, you will get immediate access to the existing base of customers and suppliers. This will ensure that you know what you are getting into.
You need a solid contract
You, as the buyer, will have to produce the sale document. This agreement will have to cover the mechanics of the deal – what is being sold, where it is, how it is to be transferred, and so on. This is where warranties come in. Click here to download a business sale agreement if you are purchasing a fast food shop.
Warranties which are legally binding promise as facts about the business, which provide information relating to the business. Click here to know about how warranties work and why they are important.
Other documents you need
Additionally, you may need assignment and novation agreements to transfer contracts the seller is a party to.
If company shares are being sold, then you will need directors service agreements, board minutes to document approvals to changes, and possibly, a new shareholders agreement and new articles of association.
We can help you find exactly what you need for your circumstances if you contact us and ask.
Please note that the information provided on this page:
- Does not provide a complete or authoritative statement of the law;
- Does not constitute legal advice by Net Lawman;
- Does not create a contractual relationship;
- Does not form part of any other advice, whether paid or free.
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