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Answers to
Broker
Questions
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Where do I go to list my restaurant
for sale?
Register in the "Brokers
Center" to
choose your listing option.
Details
on each of the options is
available in the respective
sections.
Return
to Questions
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How
much does it cost?
Broker accounts have pricing
which is dependent on the number
of listings you maintain. All
accounts have a one time setup
fee of $50. Additionally when
you sign up you will be charged
for your first month in
accordance to the level you sign
up for.
Level 1: Broker accounts which
maintain 1-5 listings -
$29.95/month.
Level 2: Broker accounts which
maintain 6-10 listings -
$39.95/month
Level 3: Broker accounts which
maintain 11-20 listings -
$49.95/month
Level 4: Broker accounts which
maintain 21-30 listings -
$59.95/month
Level 5: 31+
listings Custom
Account -
Please email
info@restaurantsforsaleonline.com
for details
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to Questions
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How can I list multiple listings
and is there a savings?
Broker accounts allow you to
list multiple listings and there
is savings over a normal seller
account if you plan on listing
for an extended period of time. If you
are interested in a broker membership
account please sign up in the
"Brokers
Center."
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to Questions
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How
do I get listed on the homepage?
Broker accounts can upgrade
individual listings to Spotlight
listings are available for only
$125/month. This is a significant
savings over the $199.95/month
available to individual sellers.
Additionally brokers can upgrade
individual listings to Featured
Listings to get priority
placement and an extra heading
line in the search results for
only $10/month, a 50% discount
over individual seller accounts.
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to Questions
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How
do I pay for my listing?
All payments are made online
using secure online credit card
processing with payment services
by Verisign PayFlow Pro.
Return
to Questions
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I would like to sell but how do
I value the business and put an
Two valuation models used in
the industry are the gross sale
and cash flow multiple models.
Based on a sample of over 800
listings taken from our website
we have pretty good evidence
that these multiples are widely
used.
Gross sale multiple:
50%-60% of yearly gross sales.
Out of three separate surveys we
conducted the averages of listed
businesses ranged between
58%-61%. Keep in mind that
listed price does not generally
reflect actual selling price.
Business brokers will usually
suggest a multiple closer to 50%
depending on the businesses
marketability.
Example:
Assumption 1:
$300,000 yearly gross sales
Assumption 2: 50% gross sale multiple
$300,000 x 50% =
$150,000 Asking Price
Cash flow multiple:
The
cash flow multiple is utilized
more often when a business is
profitable. The cash flow
multiple ranges from 150% to
350% of the yearly cash flow.
Example:
Assumption 1:
$100,000 yearly cash flow
Assumption 2: 250%
cash flow multiple
$100,000 x 250% =
$250,000 asking price
Listing Survey from
Restaurants For Sale Online -
Conducted
6/1/05
*Surveys rounded to nearest
$1,000
LISTING PRICE:
(Based on 837
Samples)
Median Listing Price: $215,000
Average Listing Price: $391,000
GROSS SALES:
(Based on
472 Samples)
Median Gross Yearly Sales:
$420,000
Average Gross Yearly Sales:
$638,000
Median Gross Sales Multiple:
50.4%
Average Gross Sales Multiple:
59.2%
CASH FLOW: (Based on 289
Samples)
Median Cash Flow Yearly: $88,000
Average Cash Flow Yearly Sales:
$129,000
Median Cash Flow Multiple:
277.8%
Average Cash Flow Multiple:
302.0%
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to Questions
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Can I list a new restaurant opportunity?
Yes. You can list any restaurant
opportunity as long as the content
is hospitality related. Our site
offers restaurant space for lease,
restaurant buildings for sale,
restaurant businesses for sale, bars
for sale, nightclubs for sale,
restaurant land for sale, restaurant
equipment for sale. In addition to
restaurants we list list bars,
nightclubs, delis, catering
companies, ice cream shops, juice
bars, convenience stores, franchise
opportunities, and various other
food service related ventures.
Return
to Questions
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What is the best way to sell my
business?
Selling
a restaurant isn't easy and
although our service has been
very
successful for many of our users,
you may want to try a
number of approaches to making
a sale. We
strongly recommend that in addition
to online marketing, that you
do
local marketing in your area.
Posting classifieds in the newspaper
and doing direct mailings to
restaurateurs in your area
will help
create interest in your business.
We also suggest for high profile
listings that you purchase
a
Spotlight listing on our homepage.
If you have been trying to
sell your
listing and have not had success
you may want to consider consulting
with
a broker that specializes in food
service businesses.
Return
to Questions
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Our sale is confidential. How can
I protect my restaurant's identity?
When filling out the listing
form, you can reveal as much
or as little
information about your restaurant
as you wish. Some of the ways
to
keep your restaurant's identity
confidential would be to list
with
a generic name (i.e. Rather than
using the restaurant's name use
a catchy title like "Fine Dining
Restaurant"). You can also
use a generic address. (ie. Rather
than the actual address use "South
of Market, San Francisco")
Return
to Questions
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Disclaimer:
The
information in our database
has been provided by the
seller or broker stated on
each respective listing.
Restaurants For Sale Online,
LLC receives no commission
on the sale of any business
and has not independently
verified any listing
information and assumes no
responsibility for the
source, accuracy, or
completeness. The results of
our various studies reflect
data in our database.
Restaurants For Sale Online
assumes no responsibility
for pricing or
recommendation of pricing to
any of our users. If you are
interested in buying a
business, Restaurants For
Sale Online, LLC recommends
you do your own due
diligence to verify the
source of any information
provided to you by a seller
and/or intermediary. If you
are interested in selling your business, Restaurants For Sale Online
recommends you contact an intermediary that specializes in
transactions similar to the respective business.
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