How to Sell a Restaurant or Takeaway Business in the UK: 6 Steps You Need to Know
If you’re thinking about selling your restaurant or takeaway, you’ve probably got a lot on your mind. Whether you’re retiring, moving on to a new venture, or simply ready for a change, it can be both an exciting and stressful time.
At Martinsons Legal, we work with people across England who are buying and selling food businesses, and we know just how many questions come up along the way. In this article – the second in our series on the sale and purchase of restaurants and takeaways in England – we’ll walk you through the main legal steps involved when selling.
Step 1: Preparing Your Restaurant or Takeaway for Sale
Before you even start looking for a buyer, it helps to have everything in order. Buyers (and their lawyers) will want to see documents like:
Your lease (or freehold title if you own the property).
A list of fixtures, fittings, and equipment that are included in the sale.
Recent financial accounts to show the business performance.
Copies of relevant licences – such as your food hygiene rating, alcohol licence or music licence.
Having these ready not only speeds up the process but also makes your business more attractive to buyers.
Step 2: Agree the Deal (Heads of Terms)
Once you’ve found a buyer, you’ll usually set out the basic terms of the sale in writing – often called “Heads of Terms”. These cover things like the price, what’s included in the sale, and the target completion date. They’re not legally binding, but they do set the framework for the deal.
Step 3: The Sale and Purchase Agreement Explained
This is the key contract that transfers ownership of your restaurant or takeaway to the buyer. It will cover important details such as:
What exactly is being sold (lease, goodwill, stock, equipment).
Who is responsible for any outstanding debts.
Whether you’ll be restricted from opening a similar business nearby in the future.
How running costs (like rent or service charges) are split at completion.
Because this agreement is negotiated between lawyers, it’s important to have someone experienced on your side to make sure your interests are protected.
Step 4: Do I Need My Landlord’s Permission to Sell?
If your business runs from a leased property, your landlord will almost certainly need to approve the transfer of the lease. This is done through a Licence to Assign. Landlords don’t often refuse, but they can impose conditions – and it’s usually the outgoing tenant (that’s you, the seller) who pays the landlord’s legal fees.
Step 5: The Buyer’s Checks (Due Diligence)
The buyer’s solicitor will carry out checks to make sure everything is in order. This might include reviewing the lease, licences, employee contracts and your accounts. It can sometimes feel like a lot of questions, but it’s a standard part of the process to make sure there are no surprises.
Step 6: Completion Day: The Final Stage of the Sale
Once everything is agreed and the landlord’s consent is in place, you’ll sign the documents and the buyer will transfer the purchase price. At that point, ownership officially passes, and the buyer takes over running the business.
How Long Does Selling your Restaurant Take?
There’s no one-size-fits-all answer, but most restaurant and takeaway sales we handle take somewhere between 8 to 12 weeks. It depends on how quickly documents are provided, how complex the deal is, and how efficient the landlord is in giving consent.
How We Can Help
At Martinsons Legal, we’ve guided countless clients through the sale and purchase of restaurants and takeaways in England. We have particular experience with Chinese, Cantonese, Malaysian and other Asian food businesses, and with our Cantonese and Mandarin-speaking lawyers, we’re able to provide clear advice and support throughout the process.
If you’re considering selling your restaurant or takeaway, get in touch with us today for a chat and a fixed-fee quote.