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06/07/2006, 18:05 Viv Joined on 15/11/2005 Posts 981 Buying a restaurant - too good to be true? My friends ( very keen to move to France) have  seen a restaurant for sale whilst on their hols that price wise to me seems too good to be true. It is in a good location so they assure me and has ample living accomodation over the restaurant and kitchens etc. The  price for the building seems very reasonable, but it doesn't mention ' good will' ( is that the term used in the UK when you pay extra for taking over a business?) does such a thing exist in France? I know they will do their homework and not rush into anything, but I just wondered if the price they have seen will be the price that they will pay for a going business. You may not like me or my opinions but you should love these http://www.frances-miles.com We are not connected but I just love 'em!    Report

06/07/2006, 18:36 You can call me Betty Joined on 23/08/2004 Beaver-Free Zone Posts 948 Re: Buying a restaurant - too good to be true? It may be that the goodwill is all they'd be buying. Does the term "fonds de commerce" figure anywhere in the documentation? In the year 2159 If man is still alive If woman can survive, they may find................    Report

07/07/2006, 8:26 P Joined on 15/11/2005 Posts 388 Re: Buying a restaurant - too good to be true? Have they been in the restaurant trade before? My dear wife who in the pub and restaurant trade before I met her has only one piece of advice for those contemplating it - don't. Obviously, some will disagree with this but her point is that it is far harder work than you will imagine. If th chef decides that he is unhappy about something he will storm off and you then become the chef. You have to deal with the public, and just look at some of the threads here complaining about some of the overdemanding public. So make sure that they realise what they will be letting themselves in for.     Report

07/07/2006, 12:20 Viv Joined on 15/11/2005 Posts 981 Re: Buying a restaurant - too good to be true? They are both in the catering trade already and have been fairly sucessful although  obviously doing things in France is going to be very different. Apparently the place is advertised as 'fonds de commerce' which if I understand the first reply properly this is for the good will. Now I know I said that it seemed a cheap price for a building but it seems a lot of money to fork out just for 'good will' , would they have to then pay a monthly rental on top? The really confusing bit for me is that the advert also stated that there is constructible building land with it . They are en route back to the UK from the SW of France so I won't be able to speak to them again until after the weekend. You may not like me or my opinions but you should love these http://www.frances-miles.com We are not connected but I just love 'em!    Report

07/07/2006, 12:59 You can call me Betty Joined on 23/08/2004 Beaver-Free Zone Posts 948 Re: Buying a restaurant - too good to be true? I'm no expert, but our local Hotel/bar has recently changed hands and only the "Fonds de Commerce" was being sold because the building belongs to the commune. I would assume that there will be a rental to pay on top, yes. Bit crazy, but in the case of our local, the "rules" for the tenant included one that they must live on the premises.  As there's insufficient space for them to do so, the commune is also building them new accommodation within the existing complex of the bar. The previous patron had managed not to have to "live in", as his own place was just around the corner. No idea about the constructible building land.bit, though..... In the year 2159 If man is still alive If woman can survive, they may find................    Report

21/07/2006, 0:13 shimble Joined on 11/07/2006 france 50 Posts 183 Re: Buying a restaurant - too good to be true? the present economic climate in france is making it difficult to sell a fond de commerce yes the price may well be reasonable however the cost of running a business in france is not reasonable especially if you intend to employ staff you will need to earn a lot of money in order to pay all your taxes and charges which is soul destroying when you see your income eaten away by the the charges imposed on your business    Report

21/07/2006, 8:13 Just Katie Joined on 11/03/2006 Posts 3,526 Re: Buying a restaurant - too good to be true? Hi Viv, I went skiing last year in the Alps.  We found a lovely little Italian bar run by a larger than life Sicilian.  The beer, prices, pizza, music and atmosphere were spot on.  He was full every night all you could hear was that till ringing.  However, he told us he was soon to return to Italy.  He was paying so much is charges that it was just not worth trading in France.  I really was such a shame.      Report

21/07/2006, 8:25 Jc Joined on 23/08/2004 Posts 752 Re: Buying a restaurant - too good to be true? Following up on the post about a chef "storming-off"-this happened in a restaurant that we frequent-the quality improved when the owner started cooking;also staying in a small hotel in Devon,I commented to the owner that the food the previous night was very good and she replied that it was the chef's night-off and the local postman stood in for him.    Report

21/07/2006, 9:15 Will Joined on 22/09/2004 Sussex & 50 (Mortainais) Posts 4,727 Re: Buying a restaurant - too good to be true?  Jc wrote: Following up on the post about a chef "storming-off"-... also staying in a small hotel in Devon... Not a place in Torquay run by a chap called Basil by any chance? Seriously, if something seems too good to be true it probably is. It is, as previous posters have said, not easy to earn a living in France and there are a lot of restaurants and bars for sale, many including the buildings as well as fonds de commerce. It is with these that the bargains are to be found, because even if the business fails you will still have a building which, subject to conditions which you should check out, could be converted to a residence. There are also some real little gold mines of bar/restaurants, particularly those in towns and on main roads which attract a good lunchtime trade, and those in popular tourist locations - though they tend to be hard work and seasonal. Will intentionally blank signature http://www.vienormande.com    Report

25/07/2006, 19:47 MargaretD Joined on 30/08/2004 Troyes (or near) Posts 114 Re: Buying a restaurant - too good to be true? Not to want to sound pessimistic, BUT... I've been "teaching" someone who has bought a butchers and needed to get his CAP so he could "run" it.  Would the French system mean that a qualified chef from the UK would have to have a CAP to start up the business?    Report

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