What equipment should I check when buying an ice cream shop?
When buying an ice cream shop, check the freezers, dipping cabinets, batch freezers and soft-serve machines. Ask for service records, find out who services each machine, and learn whether any are leased or supplied by a brand or dairy. Plan for replacement, and see each machine work before closing.
In an ice cream shop the equipment is much of the business. A failed freezer on a hot weekend can mean lost stock and lost sales. A buyer who looks closely at the machines learns a lot about how the shop has been run. This page covers the main pieces and the questions to put to the seller before you commit.
Make a list of every machine
Start with a written list of freezers, dipping cabinets, batch freezers, soft-serve machines, display cases and prep equipment. Beside each item, note its age, brand and condition. Compare the list with what you see on a visit. Items missing from the list, or listed but absent, are worth raising with the seller straight away.
Ask for service records
Request repair and maintenance records, and ask who services the machines. A shop with regular servicing tells a different story from one that fixes things only when they break. Ask what the last major repair was and what the seller expects to need next. A technician you trust can look at the main units and give you a view.
Find out what is leased or supplied
Some machines belong to a leasing company, a dairy or a brand that supplies the shop. They may come with conditions, such as buying that supplier’s product. Ask for the agreements, and ask your lawyer whether they can move to you. The same worry appears in equipment that turns out to be leased.
Watch it run and plan replacements
Ask to see each machine working, including one running through a busy period if the season allows. Ask how long the main units usually last and what a replacement would involve, then discuss the cost with your accountant and lender. Lenders that finance equipment can explain their own terms.
Related reading
15 pages on the same subject, grouped by topic.
Financing
Buying
- GuideBuying a retail bakery in Canada
- GuideBuying a catering business in Canada
- GuideBuying a butcher shop in Canada
- Expert answerWhat should I do in the first season after buying an ice cream shop?
- Expert answerWhat should I do in the first months after buying a vending route?
- Expert answerWhat should I check before buying a donut shop?
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 02Business Development Bank of CanadaGovernmentEquipment purchase financing for entrepreneurs
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.