10% commission?

[Clair de Lune]

My parents are selling their restaurant and they faxed me the sales agreement for review. I'm reading it but since I have absolutely zero prior experience in the industry, I simply don't know what the norm is and everything sounds fishy.

Could you please help and advise?

1. The agent's commission is a whopping 10% of the selling price. This is pretty much ridiculous right? Can you tell me what the norm is for restaurant agent commissions?

2. Is there a good online place to advertise our restaurant for sale (kind of like isoldmyhouse.com for homes)? What's a reputable site for this? Does Craigslist work for this as well?

3. "In the event this agreement is cancelled prior to the expiration date, then the New England Restaurant Brokers will be immediately paid for all substantiated marketing expenses and fees connected therewith. The minimum cancellation fee is $2,500" The duration is 6 months and it's $2,500 just to cancel?

4. Any particular language in the lease I should watch out for? (ie common scams)

Thanks.

 

[ponyo]

10% is normal.

 

[Capt Caveman]

Did your parents shop around for a sales agent? Did they already sign a contract with this one?

 

[Clair de Lune]

Originally posted by: Capt Caveman
Did your parents shop around for a sales agent? Did they already sign a contract with this one?

Not yet, they're holding on until I give them the green light, which is what I'm doing here through ATOT's wisdom.

 

[SacrosanctFiend]

Originally posted by: Clair de Lune

Originally posted by: Capt Caveman
Did your parents shop around for a sales agent? Did they already sign a contract with this one?

Not yet, they're holding on until I give them the green light, which is what I'm doing here through ATOT's wisdom.

Your parents are waiting for your green light from your research on ATOT? Jesus Christ...

 

[TruePaige]

Originally posted by: SacrosanctFiend

Originally posted by: Clair de Lune

Originally posted by: Capt Caveman
Did your parents shop around for a sales agent? Did they already sign a contract with this one?

Not yet, they're holding on until I give them the green light, which is what I'm doing here through ATOT's wisdom.

Your parents are waiting for your green light from your research on ATOT? Jesus Christ...

Maybe that is why they are selling the business...:laugh:

 

[chronodekar]

Originally posted by: Clair de Lune

Originally posted by: Capt Caveman
Did your parents shop around for a sales agent? Did they already sign a contract with this one?

Not yet, they're holding on until I give them the green light, which is what I'm doing here through ATOT's wisdom.

I'm not sure how good my input is here, but in my country when we have an agent who helps people find rented houses, the usual commission is 10% as well. (of the first months rent).

I think 10% seems to be the usual commission anywhere.

 

[blurredvision]

Originally posted by: SacrosanctFiend

Originally posted by: Clair de Lune

Originally posted by: Capt Caveman
Did your parents shop around for a sales agent? Did they already sign a contract with this one?

Not yet, they're holding on until I give them the green light, which is what I'm doing here through ATOT's wisdom.

Your parents are waiting for your green light from your research on ATOT? Jesus Christ...

Shut. Up.

Contrary to popular belief, a great mix of people from various backgrounds and professions do surf the internet, and subsequently, this forum. If a reputable source here can give him the info he needs, then that's just as good as searching google for an hour (although I highly recommend the OP do both).

 

[RKS]

we take 1/3 plus expenses... :laugh:

 

[TruePaige]

Originally posted by: peritusONE

Originally posted by: SacrosanctFiend

Originally posted by: Clair de Lune

Originally posted by: Capt Caveman
Did your parents shop around for a sales agent? Did they already sign a contract with this one?

Not yet, they're holding on until I give them the green light, which is what I'm doing here through ATOT's wisdom.

Your parents are waiting for your green light from your research on ATOT? Jesus Christ...

Shut. Up.

Contrary to popular belief, a great mix of people from various backgrounds and professions do surf the internet, and subsequently, this forum. If a reputable source here can give him the info he needs, then that's just as good as searching google for an hour (although I highly recommend the OP do both).

What? Inconceivable!

Seriously though, if I were a business owner and selling a business I'd have met with a lawyer to draw up contracts (or if you are a do it yourself / let the agent do it type, just to review) and asked them. A few hundred dollars for lawyer fees should be a drop in the bucket.

 

[SacrosanctFiend]

Originally posted by: peritusONE

Originally posted by: SacrosanctFiend

Originally posted by: Clair de Lune

Originally posted by: Capt Caveman
Did your parents shop around for a sales agent? Did they already sign a contract with this one?

Not yet, they're holding on until I give them the green light, which is what I'm doing here through ATOT's wisdom.

Your parents are waiting for your green light from your research on ATOT? Jesus Christ...

Shut. Up.

Contrary to popular belief, a great mix of people from various backgrounds and professions do surf the internet, and subsequently, this forum. If a reputable source here can give him the info he needs, then that's just as good as searching google for an hour (although I highly recommend the OP do both).

Lighten. Up.

Contrary to popular belief, a great number of people who can understand a lighthearted joke instead of being uptight assholes, do surf the internet, and subsequently, this forum.

Remove. Head. From. Ass. Kusoatama.

 

[blurredvision]

Originally posted by: TruePaige

Originally posted by: peritusONE

Originally posted by: SacrosanctFiend

Originally posted by: Clair de Lune

Originally posted by: Capt Caveman
Did your parents shop around for a sales agent? Did they already sign a contract with this one?

Not yet, they're holding on until I give them the green light, which is what I'm doing here through ATOT's wisdom.

Your parents are waiting for your green light from your research on ATOT? Jesus Christ...

Shut. Up.

Contrary to popular belief, a great mix of people from various backgrounds and professions do surf the internet, and subsequently, this forum. If a reputable source here can give him the info he needs, then that's just as good as searching google for an hour (although I highly recommend the OP do both).

What? Inconceivable!

Seriously though, if I were a business owner and selling a business I'd have met with a lawyer to draw up contracts (or if you are a do it yourself / let the agent do it type, just to review) and asked them. A few hundred dollars for lawyer fees should be a drop in the bucket.

Agreed, but that's beside the point I was trying to make.

 

[Perknose]

Originally posted by: Naustica
10% is normal.

But highly, highly negotiable. Don't let your 'rents sign that or agree to that 6 mo/$2,500 codicil. Bargain. In such situations, everything is negotiable.

 

[blurredvision]

Originally posted by: SacrosanctFiend

Originally posted by: peritusONE

Originally posted by: SacrosanctFiend

Originally posted by: Clair de Lune

Originally posted by: Capt Caveman
Did your parents shop around for a sales agent? Did they already sign a contract with this one?

Not yet, they're holding on until I give them the green light, which is what I'm doing here through ATOT's wisdom.

Your parents are waiting for your green light from your research on ATOT? Jesus Christ...

Shut. Up.

Contrary to popular belief, a great mix of people from various backgrounds and professions do surf the internet, and subsequently, this forum. If a reputable source here can give him the info he needs, then that's just as good as searching google for an hour (although I highly recommend the OP do both).

Lighten. Up.

Contrary to popular belief, a great number of people who can understand a lighthearted joke instead of being uptight assholes, do surf the internet, and subsequently, this forum.

Remove. Head. From. Ass. Kusoatama.

Yep, you end all your jokes with "Jesus Christ..." The only thing missing from your post was the rolly eyes emoticon. If it was honestly intended as a light jab or a joke (which I seriously doubt), then you should really work on your delivery.

 

[Clair de Lune]

Jesus, the wrath of internet flaming strikes. Take it easy guys. :rubs temples; Within 15 posts ppl are already flaming each other? ugh.

Anyways, on top of standard research, I'm trying to get a FEEL of the norm by asking many people, which forums serve best.

What good is having a lawyer to draft if I don't know what the norm is? Thanks others for your help.

 

[blurredvision]

Originally posted by: Clair de Lune
Jesus, the wrath of internet flaming strikes.

On top of standard research, I'm trying to get a FEEL of the norm by asking many people, which forums serve best.

What good is having a lawyer to draft if I don't know what the norm is? Thanks others for your help.

If you can find a lawyer that specializes in this field, he/she should be well versed on what you should expect.

 

[SacrosanctFiend]

Originally posted by: peritusONE
Yep, you end all your jokes with "Jesus Christ..." The only thing missing from your post was the rolly eyes emoticon. If it was honestly intended as a light jab or a joke (which I seriously doubt), then you should really work on your delivery.

Hrm...other people got it. Maybe if I had included the "rolly eyes emoticon" it would have been a bit more serious.

Again, lighten up. Not everything posted on the internet is serious business. However, my assertion that you are, indeed, a ?????, is serious.

 

[Capt Caveman]

Originally posted by: Clair de Lune
Jesus, the wrath of internet flaming strikes. Take it easy guys. :rubs temples; Within 15 posts ppl are already flaming each other? ugh.

Anyways, on top of standard research, I'm trying to get a FEEL of the norm by asking many people, which forums serve best.

What good is having a lawyer to draft if I don't know what the norm is? Thanks others for your help.

Since you have no clue what you're doing, don't you think you should find yourself a lawyer with commercial(restaurant) experience?

 

[blurredvision]

Originally posted by: SacrosanctFiend

Originally posted by: peritusONE
Yep, you end all your jokes with "Jesus Christ..." The only thing missing from your post was the rolly eyes emoticon. If it was honestly intended as a light jab or a joke (which I seriously doubt), then you should really work on your delivery.

Hrm...other people got it. Maybe if I had included the "rolly eyes emoticon" it would have been a bit more serious.

Again, lighten up. Not everything posted on the internet is serious business. However, my assertion that you are, indeed, a ?????, is serious.

Other people? As in one user who spends the majority of his day trying to catch new posts so he can timewarp them? OK.....

I'm done highjacking the thread, sorry OP. Continue on, hopefully others will actually help you with your question unlike SacrosanctFiend and myself.

 

[Clair de Lune]

Can anyone help me answer what the good online sites are?

Anyone have experience with this:
http://www.restaurants-for-sale.com/

 

[Capt Caveman]

Originally posted by: Clair de Lune
Can anyone help me answer what the good online sites are?

You could use a thing called google.

 

[MagnusTheBrewer]

10% is the norm. The broker gets nothing including not being paid for marketing costs if the restaurant doesn't sell in 6 months. The market is highly localized though and I have no idea of the type, location and, revenue stream for your parents restaurant. If the restaurant is a going concern, it is likely that it will sell within 6 months. If the restaurant is simply closed before being sold, your parents will lose a great deal of money as they will no longer be selling a business but, merely a building and equipment.

 

[TruePaige]

Originally posted by: peritusONE

Originally posted by: SacrosanctFiend

Originally posted by: peritusONE
Yep, you end all your jokes with "Jesus Christ..." The only thing missing from your post was the rolly eyes emoticon. If it was honestly intended as a light jab or a joke (which I seriously doubt), then you should really work on your delivery.

Hrm...other people got it. Maybe if I had included the "rolly eyes emoticon" it would have been a bit more serious.

Again, lighten up. Not everything posted on the internet is serious business. However, my assertion that you are, indeed, a ?????, is serious.

Other people? As in one user who spends the majority of his day trying to catch new posts so he can timewarp them? OK.....

I'm done highjacking the thread, sorry OP. Continue on, hopefully others will actually help you with your question unlike SacrosanctFiend and myself.

Hey that's cold! I was nice to you.

Don't be a jerk to me.

 

[TruePaige]

Originally posted by: SacrosanctFiend

Originally posted by: peritusONE
Yep, you end all your jokes with "Jesus Christ..." The only thing missing from your post was the rolly eyes emoticon. If it was honestly intended as a light jab or a joke (which I seriously doubt), then you should really work on your delivery.

Hrm...other people got it. Maybe if I had included the "rolly eyes emoticon" it would have been a bit more serious.

Again, lighten up. Not everything posted on the internet is serious business. However, my assertion that you are, indeed, a ?????, is serious.

But yeah..I did get what you were going for kind of like a "If you are here you've already failed" type joke. I thought it was funny. =p

 

[Clair de Lune]

Originally posted by: MagnusTheBrewer
10% is the norm. The broker gets nothing including not being paid for marketing costs if the restaurant doesn't sell in 6 months. The market is highly localized though and I have no idea of the type, location and, revenue stream for your parents restaurant. If the restaurant is a going concern, it is likely that it will sell within 6 months. If the restaurant is simply closed before being sold, your parents will lose a great deal of money as they will no longer be selling a business but, merely a building and equipment.

Took 40 posts of dumbassery like CaptCavemen to get to a simple answer like this. Thanks.