What costs come on top of the price when you buy a restaurant?

The asking price is the number everyone talks about, but ask what else you will pay. A restaurant buyer who plans only for the price can run short in the first month. Build a list of everything that sits outside it, ask the seller and your advisors about each item, and add them up before you make an offer.

Stock, lease and landlord costs

Ask whether food and supplies are included or counted at closing and paid for separately. The landlord may want a deposit, a guarantee or a fee to review the transfer, and may ask for the lease to be updated. Read the lease for what the landlord can charge. Your lawyer can tell you what is reasonable to expect and what to negotiate.

Professional fees and condition of the kitchen

Budget for your lawyer and your accountant, who will review the agreement, the books and the lease. Have a technician inspect the major equipment, and ask when the hood and exhaust were last cleaned. Ask your lawyer who bears repair costs found before and after closing. Repairs found before can be raised with the seller. Either way, they belong on your list.

Accounts, staff and working capital

Point-of-sale systems, delivery-app accounts and online listings may not transfer on their own, so ask what each one needs. Ask whether staff have unused vacation time and how the agreement deals with it; your lawyer can confirm what applies where the business is. Tax questions on any of this go to your accountant. Finally, keep working capital for slow weeks in the first months.

A list to start from

• Food and supplies counted at closing.
• Lease deposit and landlord consent costs.
• Lawyer and accountant fees.
• Equipment repairs and hood cleaning.
• Accounts for systems and delivery apps.
• Any vacation pay outstanding for staff, as the agreement and your lawyer determine.

For the full process, see buying a restaurant in Canada, and for lending, financing a restaurant purchase.