Should I keep the restaurant’s name after I buy it?
Keep it if the name carries goodwill you are paying for and your concept stays close to the original. Change it if the reputation is a burden or you are changing the food, the room and the price point. Check first that the name is actually included in the sale.
Ask what the name is worth to the people who use it. Read the reviews, talk to regulars if the seller allows, and look at how many orders come from people who plainly know the place. If the name is your reason for buying, say so in the agreement and confirm the seller will not open another venue under it nearby.
Then ask whether your plan fits the name. A beloved neighbourhood grill that becomes an upscale tasting room can confuse people, and a new name on an unchanged menu can lose the loyalty you paid for. Some buyers keep the old name with a small line such as “under new ownership,” then rename once trust has built. Others rebrand cleanly on a set date.
Finally, check the practical side. Confirm who owns the name, the web domain and the social accounts, and whether the name is registered or could be challenged by someone else. Your lawyer can advise on registering the new name, and a sign, menu and uniform change takes time and money to plan.
Key takeaways
- Make sure the name, domain and social accounts are named in the sale.
- Keep the name when its goodwill matches your plan; rename when it does not.
- Ask your lawyer about registering or protecting whichever name you choose.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentUnderstanding post-merger operational integration
- 04Restaurants CanadaIndustryRestaurants Canada - The Voice of Foodservice
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