Hi guys,
I'm have a plan to buy a small business like a Coffee shop with budget under 150k.
I have all finical information (sales revenue, gross profit, expense….)
I'm just wondering if I can refund the business to the seller when I running the business, but the sales revenue is not like the finical information they give me? (for examples: 5k/week, but they said me 10k/week)
Or is there any sale agreements for what I'm concerned?
maybe watch the shop from a distance to see if there is a busy flow of customers
No need just say i want to do a 1 month hand over.
Like sit in the car across the street with a clipboard and record what each person buys to calculate sales. Then if the owner refuses your offer, send in Bill Burr posing as a water inspector to tell the owner they need to replace their water filter system.
Lol
Bloody gold
"I bought an item, not as described. How do I get a refund?"
Needs to buy from a seller with a satisfaction guarantee or money back, otherwise move on from the deal. 🤷♂️
Most likely the answer is TFB.
Not an accountant but since you have no location it is hard to answer.
Personally I would start new or forget it.
I doubt the refund though on another area, have an expert go over the employment costs and make sure they are still making a profit while paying staff correctly.
Also, don't buy a franchise!
Also, I really hope you've worked in hospitality a lot before buying in.
Also, I really hope you've worked in hospitality a lot before buying in.
This!
Don't go expecting this to be a walk in the park
You’d need advice from a business lawyer about what to consider in your contract. Here’s an example
http://cdn.renet.net.au/10053695/images/438176/AJ%20Standard…
See clause 10. Which in this example says compensation but doesn’t not nullify the sale ie no refund. And it’s unclear if a clause like this would cover reduced sales as the previous owner could blame it on other factors.
I’ve never bought a business but you’d want to scrutinise their in and out goings before buying. You can also get an idea but looking at their menu and watching how much traffic it gets through the day, how much people are buying etc.
Also see 4.7 here https://www.murfett.com.au/amp/Articles/A-Business-Lawyer’s-Guide-to-Selling-Buying-a-Bu.amp.html
It kind of sounds like you need to do at least a short course on small business management/ownership before embarking on this.
Thats a cheap cafe
Just show the receipt at the counter for full refund
Make sure to ask for the manager.
Oh wait..
Maybe better to buy $150k in shares/stock, or put into term deposit.
Crypto?
Tell them under Australian warranty laws, the shop isn't as described and ask for a full refund
/s
Maybe u can ask to work at the Cafe (for free) for a month or few weeks as part of the consideration to buy.
Read like OP has not bought it yet, then has then want to get out of the contract that OP does not know if there is a sale agreement…..
Sounds like OP has no idea how businesses run or how to buy a business and as such needs to get both an accountant and a lawyer.
It can happen.
https://neoskosmos.com/en/2021/07/29/life/food-drink/end-of-…
“He bought the shop back from the couple to whom he had sold it to in 1977. Generally the threshold for running a milk bar tended to be two years and they were more than ready to sell. When, we the children, took over from our parents we ran the shop seven days a week for four years and that was very demanding."
Just charge back on credit card… although you might lose your cash rewards /s
Paid with gift card, can only get store credit back. Must spent in 30 days
I believe under acl :
Major fault - refund or exchange
Minor - send back to manufacture for repairs.
Hope this helps.
Past performances does not guarantee future performance.
Typically a small business up for sale will pump up sales / profit. Eg unpaid hours by owner, sales etc for a few months and then provide that as the books.
There is a lot that an accountant or business lawyer would need to do in regards to due diligence which is what you need done.
That however is a question of how long is a piece of string. The deeper you want the business looked into the more it is going to be
Just keep your receipt and return within the period it states on the receipt
Have you received the section 52 yet (if you are in VIC)?
Hi OzBargain, I want to buy risky business with no risk.
Please advise, haha
No refund for goodwill purchase, caveat emptor.
One option could possibly be to get your lawyer to put an earn out arrangement in the sales contract
Ask for 2 years tax returns. That should tell you correct figures.
Also consider did they have any thing to boost numbers for that period eg over xmas they may get more traffic, or there may of been a large job site/estate getting built for the last year so every tradie called in on way past.
Is there any thing to effect isnt future income eg bypass or new shopping center opening up
I know a resort at Townsville had a similar issue basicly was Japanese owned and heavily plugged over there (golf is crazy expensive in japan) sold to aussies and the Japanese market died was a ghost town and got sold for house development.
Also there may be things they like when they sell will also go maybe they have a hot daughter that works there that gets the tradeys in or owners makes great home made cakes or has a excellent coffee. Shit service or coffee will drive them away like the plauge
You would run the business with the vendor for a period of 6 weeks side by side (almost like a shadow exercise) and if the average daily intake is different to what they tell you, then tell them we'll have to adjust the sale price.
talk to an accountant about a way to verify figures