Who owns the kitchen equipment in a workplace or school cafeteria?
In a host’s kitchen the equipment may belong to the host, the operator or a lessor, and the split is often only in the contract or an equipment schedule. A buyer builds an item-by-item list, matches it to the contract and any lease, and asks who repairs and replaces each piece and what leaves if the contract ends.
Walk into a school or office kitchen and everything looks the same: ranges, hoods, walk-in coolers, a serving line. Ownership is another matter. Some of it was installed by the host, some bought by the operator, and some leased. What passes to you depends on how the sale is structured, which is a question for your lawyer. Sorting out which is which belongs near the start of your review.
Build the list item by item
Walk the kitchen with the seller and write down every significant piece, with its make, model, age and condition. Mark who the seller says owns it. Then ask for the proof: purchase invoices for operator-owned items, and the host’s asset records for the rest. A list that rests on memory alone leaves room for argument after closing.
Match it to the contract and any lease
The contract or an equipment schedule attached to it may spell out who owns, repairs and replaces what. Compare your list to it. Ask for any equipment lease, and note whether the lessor must agree to a change of operator. If there is a loan secured against equipment, ask your lawyer how to find out and what that means for you.
Repairs and what leaves with the operator
Ask who pays when a walk-in fails or a hood needs work. A contract that puts all repairs on the operator changes your budget. Then ask what happens when the contract ends. Ask which items the contract treats as the operator’s and which as the host’s, and have your lawyer read the wording. That matters if you lose the contract or plan to move the equipment to another site.
Related reading
14 pages on the same subject, grouped by topic.
Buying
- Expert answerHow can I tell if a mobile catering business for sale is profitable?
- Expert answerWhat should a holdback cover when you buy a restaurant?
- Expert answerDoes the co-packer contract transfer when I buy a food brand?
- Expert answerHow do I find a bagel shop for sale?
- Expert answerHow do I find a juice or smoothie bar for sale?
- Expert answerWhat does a fast food franchise owner do day to day?
- Expert answerHow do I check a fast food franchise’s kitchen equipment before buying?
- Expert answerWhat should I test on a used food truck before I buy it?
- Expert answerHow do I check what materials and spray equipment an insulation contractor owns?
- Expert answerHow do I inspect a cooking school’s teaching kitchen equipment before buying?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentEquipment purchase financing for entrepreneurs
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.