What should I check before buying a gelato shop?
Check who actually makes the gelato and whether that knowledge transfers, in writing and in practice. Then look at the batch freezer and display cases, ask for the recipes and a training period in the agreement, and find out whether any restaurant or grocery accounts are written contracts or handshakes.
A gelato shop that makes its product on site depends on a skill as much as a storefront. The flavours, the texture and the reputation often live in one person’s hands. Before you buy, find out what is written down, what can be taught and what leaves with the seller. The shop’s equipment and its accounts matter too, but the know-how comes first.
Whose hands make the gelato
Ask who makes each batch, how long they have done it and whether they plan to stay. Ask for the recipes in writing, including the base, the flavour method and the order of steps. A recipe on paper is not the same as a result at the machine, so ask for a training period in the agreement, with a set number of days beside the maker before closing.
The batch freezer and display cases
The batch freezer is the heart of the shop. Ask for its age, its service history and who services it, and have a technician look at it if you can. Check the display cases for temperature holding and seals, and the storage freezers for how full and how old they are. Ask whether any equipment is leased, because a lease may not move to you on its own; your lawyer can confirm what the lease says.
Wholesale accounts and special orders
Some gelato shops also supply restaurants, cafés or grocers. Ask to see each arrangement. A written supply agreement tells you the terms and whether the customer can leave. A handshake account may depend on the seller’s relationship, so speak to those customers, with the seller’s agreement, before you count on them. Catering and event orders deserve the same questions.
Ingredients and food safety records
Ask about the main ingredient suppliers, any imported items and how long supply takes to arrive. Ask to see the shop’s food safety routines and its most recent inspection results. Your lawyer or the local health authority can confirm what applies to a new owner, and the seller’s records show how the shop has run in practice.
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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 CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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