What costs come with selling a food truck?
Expect costs in several groups: repairs and servicing before you list, a mechanic’s and equipment inspection, cleaning and photos, listing or broker fees, lawyer and accountant fees, paying out any lien or equipment lease, rebranding if the name is not sold, and trading days lost to showings. Ask your accountant about tax on the sale.
Selling a food truck has costs beyond the ad. Some costs come before you list, some during the sale, and some at closing. Write them in a list early so none of them is a surprise. This page names the categories only. Your own quotes will tell you what each one comes to for your truck.
Before you list
Buyers notice what looks neglected. Budget for repairs and servicing of the vehicle and the kitchen equipment, a mechanic’s inspection and an equipment check, a thorough clean, and good photographs. A report you can hand to a serious buyer saves arguments later. Fix what is cheap to fix, and be ready to explain anything you leave as it is.
During the sale
If you use a broker or a paid listing, ask how fees are charged and when they are owed. Plan for a lawyer to prepare or review the agreement, and an accountant to review the books buyers will ask about. Showings take time, and every day the truck sits for a viewing is a day it is not selling food. Allow for that in your schedule.
At closing
Check whether a lender or leasing company has a claim on the truck or its equipment. Ask your lawyer who pays out and discharges those claims, and when. If the trading name is staying with you, budget to remove the wrap or branding. Tax on the sale is a question for your accountant. This guide to selling a food truck covers preparation and timing.
Related reading
15 pages on the same subject, grouped by topic.
Selling
- GuideSelling a food truck in Canada
- GuideWhat do I need to do to sell a food truck in Ontario?
- Expert answerHow do I prepare a carpet cleaning business for sale?
- Expert answerHow do I keep my fast food franchise running well while it’s for sale?
- Expert answerDoes my Safe Food for Canadians licence transfer when I sell my food business?
- Expert answerHow do I explain my buffet’s rising food costs to a buyer?
Due diligence
Buying
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Canada Revenue AgencyGovernmentSelling a business
- 02Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
- 03Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
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.