Am I buying a commercial kitchen or a commissary kitchen business?
Ask what is actually being sold. A commercial kitchen listing may be a fitted space and its equipment. A commissary kitchen business is a running operation with renters, bookings, agreements and income. Whether you are buying assets or a business depends on how the deal is structured, and the questions differ; your lawyer can advise.
Listings use “commercial kitchen” and “commissary kitchen” as if they meant the same thing. They can mean very different purchases. One may be an empty, well-equipped room. The other may be a shared kitchen with food businesses renting time every week. Before you compare anything, settle which of the two the seller is offering.
A space and its equipment
If the listing is for a commercial kitchen, you may be buying a lease, a ventilation system, cooking lines, cold storage and fixtures. Ask for an equipment list showing what is owned, leased or financed, and have the larger items checked. Ask the landlord whether the lease can move to you and whether the use of the space is allowed to continue.
A running shared-kitchen business
A commissary business adds people. Ask for the renter agreements, the booking system, the list of current users and how long each has stayed. Ask who handles cleaning, storage and shared supplies. Find out how the income arrives and how much depends on a few renters. Those agreements are contracts you would be taking on, so your lawyer should read them.
What changes in your questions
For a space, your questions are about the lease, the equipment and what you could do with the room. For a business, they are about renters, records and who the seller’s operator is. Ask what permits the kitchen operates under and what each renter must hold themselves. If the seller cannot separate the two answers, ask again in writing.
- A written description of what the sale includes.
- The lease and any landlord consent.
- Equipment list with ownership and condition.
- Renter agreements, booking records and permits, if it is a business.
The buyer’s guide for wholesale bakery and commissary kitchens goes further into the running-business side.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideBuying a wholesale bakery or commissary kitchen in Canada
- GuideBuying a catering business in Canada
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- Expert answerWhat should I check before buying a restaurant equipment and supply dealer?
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- Expert answerHow do I check a specialty food shop’s prepared meals and kitchen setup?
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Canadian Food Inspection AgencyGovernmentPreventive controls and preventive control plans: Requirements for food businesses in Canada
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