What should I ask about a taproom’s food truck partnerships before buying?
Ask whether the partnerships are written agreements or handshakes, who pays whom, and whether any truck has special rights. A taproom that depends on one popular truck is exposed if that truck leaves. Find out how easily you could replace it and how guests would react.
Start with the arrangements themselves. Ask for any written terms with the trucks: schedules, fees or revenue sharing, space they use, and who is responsible for insurance and cleanup. If the relationship is informal, ask the seller to describe it in detail and be ready to put it in writing after the sale.
Then ask how much the taproom leans on the trucks. Look at sales on days when a truck is present and days when it is not. If customers come mainly for the food, the loss of a partner would hurt. If the trucks are a bonus, the risk is smaller. Ask which trucks guests mention most.
Think about exclusivity and conflicts. Has the taproom promised any truck sole access, or does a truck have claims on the space? Check the lease and local requirements for outdoor vendors with your lawyer, as these differ and can restrict what is allowed. Finally, ask whether the truck owners know about the sale and are willing to continue. A call from the seller, followed by a meeting with you, often shows whether goodwill transfers. Ask what you could offer to keep them, and whether alternatives exist nearby.
Key takeaways
- Get the terms with each truck in writing, or write them down together.
- Compare taproom sales on days a truck is present and days it is not.
- Check exclusivity promises and lease limits on outdoor vendors with a lawyer.
Related reading
15 pages on the same subject, grouped by topic.
Due diligence
Buying
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- Expert answerIs it safe to buy a food truck from Alibaba?
- Expert answerShould I buy an existing food truck or have one built?
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Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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