Law

Selling a Restaurant? What Could Go Wrong?

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In a long mediation/arbitration career I periodically encounter disputes between the seller and purchaser of a restaurant.  These disputes are especially difficult for several reasons and usually only involve the sale of the business and not the real estate where the restaurant is located.  Chief among these problems is that litigation costs piled on to an already non-performing  purchase and sale creates an additional obstacle to a reasonable settlement.  How do sellers and buyers reach such an impasse?

Most lawsuits involving restaurant sales feature a seller suing a buyer for non -performance of a purchase and sale agreement that is usually an installment agreement in which the purchaser has agreed to make periodic payments to the seller over an...

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