How do I assess the play equipment when buying an indoor playground?
Ask for the maintenance and inspection records, find out who installed the structure and whether it can be moved, judge its age and wear, and plan when it will need refreshing. Search for liens on any financed pieces. Have a qualified person look at the structure itself rather than relying on the seller’s description.
In an indoor playground the equipment is both the attraction and the largest asset. Children use it hard, and its condition affects safety, reputation and what you will spend after closing. A walk-through with the seller tells you little. Records, a close look and a few direct questions tell you much more, and they are worth gathering before you commit to anything.
Age, wear and the records behind them
Ask when each major piece was installed, what repairs were made and who did them. Request maintenance logs, inspection reports and any notes about parts that were replaced or removed. Gaps in the records are worth asking about. Look at padding, netting, fasteners and flooring yourself, and ask a qualified person to inspect the structure before you rely on it.
Installation and moving the equipment
Find out who designed and installed the structure, and whether that company is still in business and can supply parts. Ask whether the equipment can be taken apart and moved if the lease ends, or whether it is built for this room alone. That answer matters if the landlord will not renew, or if you plan to change location.
Replacement and refresh timing
Families may return when something looks new. Ask the seller how often attractions were refreshed and what is due next. Build the work into your own plans, and have your accountant review how the cost fits your financing. The BDC article on used equipment is a useful starting point for judging condition.
Liens on financed equipment
If the seller financed any of the equipment, a lender may hold a claim on it. Your lawyer can search the registry for security interests (see how a registry search works) and explain how clear title is arranged at closing. Ask early, so any payout is built into the closing steps and not found afterwards.
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Legal
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
- 04Business Development Bank of CanadaGovernmentBuying a business? How to protect yourself from potential liabilities
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