10% commission?

[TruePaige]

Originally posted by: 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/

Lawyers are paid to know the ins and outs.

Seriously, with businesses being sold many times for ~million dollars don't waste time and possibly get misinformation when a trained professional can give you exact facts for 200-400 dollars.

 

[thepd7]

Originally posted by: 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.

He's in the biz too so you can trust him.

 

[imported_Lothar]

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.

The only person the OP needs to listen to in this thread is the quoted poster above. :thumbsup:

 

[Capt Caveman]

Originally posted by: 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.

😕 And you still need to get a lawyer with restaurant experience.

And of course, I should let the mods know what your previous banned username was.

 

[Perknose]

Originally posted by: 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.

Honestly, OP, this is beyond true. The one caveat is that you DO want a broker with a track record. Ask for it. Check it. But you CAN and SHOULD negotiate the percentage, you just have to do so in a confident and not a hesitant way.

What is it they always tell you medically? Get a second opinion! Create competition, let the brokers know you have done so, and watch the "free market" work its magic for you. And . . . be patient, every negotiation is a process.

What's the price? What's the broker's percentage? In ALL cases, the price and/or the percentage is what you and the other party finally agree to, and none other.

 

[nerp]

Hire a lawyer.

WHy?

Here's my advice.

Demand the agent accept no commission and demand the price be cut in half. If they don't agree, walk away.

 

[TruePaige]

Originally posted by: Capt Caveman

Originally posted by: 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.

😕 And you still need to get a lawyer with restaurant experience.

And of course, I should let the mods know what your previous banned username was.

It's okay. OP has made many a thread where upon he bitches about trolls ignores advice and in the end does exactly what he was doing before he asked for advice.

...making all his threads a pointless act of futility.

 

[MagnusTheBrewer]

Originally posted by: nerp
Hire a lawyer.

WHy?

Here's my advice.

Demand the agent accept no commission and demand the price be cut in half. If they don't agree, walk away.

Reading failure.

OP, you certainly could go for legal advice but, you might try a local university law school if you go that route. I recommend simply asking the broker to explain any parts of the contract you don't understand.

 

[seemingly random]

Originally posted by: TruePaige

Originally posted by: 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/

Lawyers are paid to know the ins and outs.

Seriously, with businesses being sold many times for ~million dollars don't waste time and possibly get misinformation when a trained professional can give you exact facts for 200-400 dollars.

Yeah, like a real estate banker ... well, maybe not all trained professionals are created equal.

Consult with a restaurant trade association.

These are not normal times. I'd start the negotiation at 5% and not go higher then 8%. I wouldn't sweat it though since each deal is negotiable.

 

[edro]

Yahoo Answers always has the best, most reliable answers.

 

[richardycc]

where are you? I have a few clients looking to buy restaurants...are they just selling the business or including the building, etc?

 

[DrPizza]

Personally, I feel it should depend on the value of the restaurant before I'd be willing to pay a flat % commission. Maybe up to a certain point, but if it's a million dollar business, do you really think that the services of an agent are worth $100,000 for less than 6 months of work, spending a few hours a week? That's ridiculous.

 

[olds]

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. 🙂

You are fucking doomed.

 

[TruePaige]

Originally posted by: oldsmoboat

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. 🙂

You are fucking doomed.

There you have it, straight from the oldsmoboat's mouth. 😉

 

[SacrosanctFiend]

Originally posted by: oldsmoboat

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. 🙂

You are fucking doomed.

Oooh, peritusONE, you need to come defend ATOT's professionals!

 

[seemingly random]

Originally posted by: DrPizza
Personally, I feel it should depend on the value of the restaurant before I'd be willing to pay a flat % commission. Maybe up to a certain point, but if it's a million dollar business, do you really think that the services of an agent are worth $100,000 for less than 6 months of work, spending a few hours a week? That's ridiculous.

Not necessarily. Sales promotion is a realtor expense. If they take out a full page ad in the new york times, etc, it might be worth it. Each situation is unique.

I've only sold residential houses but in each one the realtor laid out the sales plan - including advertising.

 

[ponyo]

Originally posted by: DrPizza
Personally, I feel it should depend on the value of the restaurant before I'd be willing to pay a flat % commission. Maybe up to a certain point, but if it's a million dollar business, do you really think that the services of an agent are worth $100,000 for less than 6 months of work, spending a few hours a week? That's ridiculous.

Of course. Everything is negotiable. Great business will sell on its own. But it's a tough market to sell a business, especially restaurant.

I sold my restaurant without a broker on my own. But that's not the norm and I got lucky and sold at a good time. I've several friends in the restaurant biz and they're trying to sell and getting absolutely no interest or bites. Typical sell period is averaging over a year atm from what I hear.