The Eight Step Selling
Process - Part III:
Licenses, Inventory, & Closing Escrow
This is the final
section of a three part series on the eight step
selling process. If you missed the first two parts
please look at our two most recent Restaurant Raps,
the 2004 Third Quarter Issue which discussed:
1) receiving the offer, 2) responding to the offer,
3) acceptance of the offer and 4) removal of
contingencies and the 2004 Fourth Quarter Issue
which discussed the escrow process in depth.
The final steps in the eight step selling process
are as follows: 1) obtaining licenses and setting up
tax accounts, getting insurance in place, etc, 2)
transferring licenses, 3) taking inventory and 4)
closing escrow.
1. Obtaining Licenses, Setting Up Tax Accounts,
Getting Insurance In Place, etc.– The buyer
needs to apply for the following: a) resale permit
from the State Board of Equalization, b) an
affidavit of Fictitious Business Name with the
county clerk, c) Business License with the local
governmental office and d) an Employer’s Tax
Identification Number with the State of California
Employment Development Department. Also the buyer is
to get his liability insurance in place and arrange
to have the utilities changed to his name at the
close of escrow.
2. Transferring Licenses – The ABC
(Department of Alcoholic Beverage Control License)
is transferred
during the escrow process and we handle this process
which normally takes about 6 to 8 weeks. We work
closely with the buyer and ABC investigator through
the entire process to assure that the license will
be transferred in an expeditious manner. If there is
a club sale there are other licenses such as
entertainment licenses and dance licenses which need
to be transferred and if there is a brewpub sale
there are special alcohol manufacturing licenses
which need to be transferred which we handle as
well. Also if there is a franchise sale we need to
get the approval of the franchisor of the proposed
franchisee.
3. Taking Inventory – If salable inventory
(food, beverage, cleaning and paper supplies) is
being
transferred a physical inventory is taken by the
buyer and seller immediately before the close of
escrow. Salable inventory is paid to the seller at
sellers cost in addition to the purchase price. An
inventory of the fixtures and equipment is also
taken by buyer and seller immediately before the
close of escrow to assure that all the inventory
indicated on the inventory list given to the buyer
when the purchase contract was executed is there.
Also the buyer checks all the equipment immediately
before the close of escrow to assure that it is in
good operating condition
4. Closing Escrow – Once all of the above
items are complete the buyer calls us and tells us
he is ready to
close escrow and we call the title company and tell
them to close escrow. We instruct the seller to give
the buyer the keys and instruct the buyer to
immediately change the locks.
After closing nearly 400 escrows Restaurant Realty
Company is very qualified to work with you through
the eight step selling process and we look forward
to providing you with our professional services.
Restaurateurs of the Quarter -
George Morrone And Aabi Shapoorian
Two
successful restaurant stories have teamed again on a
new venture that will open this April in Novato.
Restaurant Realty participated in the deal where
George Morrone and Aabi Shapoorian will open a
Steakhouse with beef from Argentina and a menu to
match. They have been wowing crowds most recently in
San Francisco with their inventive restaurant called
Tartare-known for its unusual list of tartars-raw
items such as ahi tuna, beef, ostrich and even
watermelon.
George Morrone is the chef partner whose resume
reflects him as an outstanding culinary talent. He
is the only Bay Area chef ever awarded four stars
twice. George has been voted Chef of the Year in
1992 and 2002 and has been featured frequently on
the PBS series Great Chefs. Morrone started out
early in the business-working at a bakery in high
school, attending the CIA-Culinary Institute of
America and working in acclaimed restaurants
throughout the country. He has traveled the world
and has brought his touch to a number of San
Francisco venues including Campton Place, Aqua as a
partner with Michael Mina, and Fifth Floor where he
met Shapoorian.
Aabi Shapoorian, an Economics and Math major at
UCLA, worked in restaurants throughout college. He
realized after taking a job at IBM, he was more
suited for the challenges of the hospitality
industry. He worked his way into management with
Reflection Management, owner of the Crocodile Café
chain, and then on to Director of Operations for
Kimpton Hotel and Restaurants. He helped open Ponzu
and Fifth Floor in San Francisco and turn around the
Grand Café in the Hotel Monaco. He met Morrone and
the rest is history.
Good luck on your new site at 340 Ignacio Boulevard
in Novato.
