Here at First Choice Business Brokers we’ve expanded a great deal since we started out 10 years ago, when we mainly helped people buy and sell food hospitality outlets, including buying cafes, bakeries, restaurants and food franchises. These days we sell so much more, but food hospitality remains our “bread and butter” (pardon the pun!).
When you buy a cafe business you want everything in order: profit and loss statements, lease documents, supplier agreements, franchise agreements, and more. The role of a business broker is to smooth the process, and ensure that all parties have what they need at key moments in the transaction.
Imagine that you want to buy a franchised cafe here in Melbourne. This is going to be a whole lot easier if you use a business broker. We’ve overseen such transactions hundreds of times. Here’s the rough process for buying a franchised cafe (remember, a business broker like First Choice will assist you with EACH step below):
• Present yourself well on paper. Prepare a CV and cover letter, showing your business experience, and interests/passion for food hospitality. Explain any prior experience or studies in food preparation.
• Prepare for and attend an interview with the franchisor. Imagine the questions they will want to ask you. This is like a job interview, but you need to show the franchisor why YOU are the best person to represent their brand.
• Ensure that all legal documents are in order. This includes franchise and lease agreements, and franchise and lease disclosure forms.
• Ensure that all accounting documents are in order. This can include the Form 2 document, and profit and loss statements.
• Ensure that you have appropriate finances in place. Have cash ready, or liaise with your financier well in advance.
• Negotiate on price for the cafe with the vendor. Seal the deal at the right price.
As you can see, buying a cafe is quite difficult on your own, especially if you don’t have experience. But if you have a trusted business broker on your side, you can rest knowing that everything should fall into place at the right time. Pretty soon you’re going to own your own Melbourne cafe!