Buyers expect that the items they purchase have undergone a thorough inspection. Restaurant buyers are no exception and they want assurances that the business they are viewing has undergone a review by experts in the industry.
The Certified Pre-Owned Restaurant™ program is a 10 point inspection for any previously owned restaurant. The Certified Pre-Owned Restaurant™ business has undergone a top-to-bottom review by the most highly trained, knowledgeable, and educated Restaurant Brokers in the industry.
We Sell Restaurants, the largest restaurant brokerage firm in the nation, developed the highly coveted designation and is the registered owner of the Certified Pre-Owned Restaurant™ trademark. The ten requirements a Certified Pre-Owned Restaurant™ must meet to get the classification are as follows.
- Reviewed by a Certified Restaurant Broker: Our Certified Restaurant Brokers have undergone meticulous training and certification in the specific field of valuating restaurants. They apply this unique skillset to come to the appropriate valuation for any listing classified as a Certified Pre-Owned Restaurant™.
- Verifiable Sellers’ Discretionary Earnings (SDE): Many buyers inquire about a business broker’s listing only to learn that the books cannot be verified. A Certified Pre-Owned Restaurant™ will always be a cash-flow positive enterprise with substantiated earnings and an in-depth Business Analysis Tool available for buyers.
- Evaluated based on industry guidelines for expense ratios: Restaurants can be analyzed by expense ratios and standardized metrics that provide a critical understanding of performance both now and in the future. A Certified Pre-Owned Restaurant™ has been evaluated based on the controllable and non-controllable expense lines to identify the current status of the business along with recommendations to bring expense ratios in line and improve profitability.
- If SBA lending is advertised, business earnings qualify subject to Lender's review and approval of the buyer: A Certified Pre-Owned Restaurant™ advertised by We Sell Restaurants is available for SBA lending has been prequalified with the lender. That confirms that the restaurant's financials will qualify for lending in the current market. A buyer only needs to provide their financials and resume to the lender to move forward on securing a loan for the business.
- A Business Analysis Tool with the latest profit & loss is available for immediate review by qualified buyers: Any Certified Pre-Owned Restaurant™ will come with up-to-date financials that are instantly available for a qualified buyer based on the seller’s requirements to purchase. The Business Analysis Tool, which is completely proprietary to We Sell Restaurants, is the most robust listing presentation format in the industry and includes insightful information on the restaurant for sale. This is immediately available for qualified buyers and only restaurants with clean, accurate books make the cut.
- Priced based on market comps and accepted industry guidelines: The process for pricing the Certified Pre-Owned Restaurant™ is based on up-to-date methodology and national sales comps. A Certified Restaurant Broker relies upon information, not gut feeling when it comes to pricing, which benefits both the buyer and the seller.
- All equipment transfers free and clear of any liens subject to a UCC Lien search by the closing agent: For someone interested in purchasing a restaurant, it is critical that furniture, fixtures, and equipment transfers securely and without any impediments. For any Certified Pre-Owned Restaurant™, a Uniform Commercial Code (UCC) filing check is performed before closing to ensure nobody else has a financial claim to the equipment.
- If leased, the property is available for assignment, extension, renewal, or new agreement for qualified buyers: For buyers, it is crucial that the current lease terms will transfer or that the Restaurant Broker has already verified the ability to retain a new lease with similar terms. A change in the lease can have a dramatic impact on the future financials of the restaurant so this is a critical element that should never be overlooked.
- If the restaurant is a franchise, the business meets the criteria for transfer or assignment of the franchise: For buyers wanting to turn the key on an existing franchise, a Certified Pre-Owned Restaurant™ guarantees that the brokers at We Sell Restaurants have partnered with the franchisor to come to a clear understanding of the requirements needed to qualify the buyer as a new franchisee. This includes knowing how much the transfer fee costs, how many option years remain on the franchise and any training requirements. Any buyer should be equipped with this information to clearly understand all immediate and ongoing obligations they may have with a franchise brand.
- Includes the services of a Certified Restaurant Broker at no cost to the buyer: All work performed on behalf of the buyer by the Certified Restaurant Broker as it pertains to the sale of a Certified Pre-Owned Restaurant™ is free of charge. This approach speaks to our commitment to excellence in customer service.
The team at We Sell Restaurants has developed a whole new paradigm with the newly launched Certified Pre-Owned Restaurant™ Initiative. It exists to clearly identify those listings that are “the best of the best” and make the process easier for serious buyers. The listings found on this page all meet the metric for a Certified Pre-Owned Restaurant™.
If you are selling a restaurant, you may be wondering exactly why you need the services of a restaurant broker. After all, finding a buyer can’t be all that hard, right?
From cars on the secondary market to homes transferring from the original owner, buyers appreciate items which fall into the "best of the best" category.