What should I check before buying a mobile mini donut business?
Check the automatic fryer machine and how easily parts are found, the trailer and the vehicle that tows it, the event calendar, how weather affects sales, and the labour needed for each setup. Unlike a storefront donut shop, there is often no lease to read, so check the calendar and the equipment.
A mobile mini donut business works from a trailer or a tent at fairs, markets and private events. A storefront donut shop is a different purchase, with a lease, foot traffic and early-morning baking. Here the questions move from the building to the machine, the road and the calendar. A good first step is to watch it run for a full event.
The machine and its parts
The automatic fryer is the heart of the business. Ask how old it is, who services it, what has broken and what a repair took. Find out whether parts are easy to get and whether the maker is still supporting the model. Have someone who knows the machine look at it while it is in use.
Trailer, towing and storage
Inspect the trailer’s frame, tires, wiring, generator and gas lines. Ask whether the tow vehicle is part of the sale, because a trailer is of little use without it. Ask where the unit is stored and what that costs, and check the insurance history with your broker.
Calendar, weather and labour
Ask for sales by event and which events are rebooked. Rain, heat and cold change a day’s sales in ways a yearly total hides, so ask how the owner coped with bad weather. Ask how many people work an event and how long setup and teardown take. Your own availability may decide whether the schedule works.
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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 CanadaGovernmentEquipment valuation: How to do it
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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