Losing money, there are many disputes over restaurant transfers

Losing money, there are many disputes over restaurant transfers, Los Angeles report There are often news of transfers of Chinese restaurants in Southern California, and there are also many disputes. Some ended up with both parties taking a step back and making a big settlement, and...

lost all their money. There are many disputes over restaurant transfers. Report from Los Angeles. There are often news of transfers of Chinese restaurants in Southern California, and there are also many disputes. Some cases end with the two parties taking a step back and settling, while others end up in court without end. Mr. Fang, who runs a Chinese fast-food restaurant in a Hispanic community in Riverside County, said that more than a year ago he saw a local advertisement claiming that "the income is stable, the owner has no intention of running the business because he returned to China, and the Chinese restaurant is sold at a low price." He later bought the equipment and operating rights for 100,000 yuan, and took over the lease. "At that time, the owner took out the restaurant's income and expenditure accounts and told me that the monthly turnover was about 20,000 yuan. After deducting costs and other miscellaneous expenses, the money would be recovered in one year." But after taking over, he couldn't make ends meet in the first three months, and he thought the previous owner had deceived him. Later, the former owner, who claimed to have retired and returned to China, agreed to compensate 40,000 yuan, and the two parties ended in a settlement. But Mr. Chen, who bought a Chinese restaurant in a mainstream community in Orange County, was not so lucky. He was originally engaged in the Chinese restaurant business. He said that the seller apparently made false accounts at the cash register, making him mistakenly believe that the business was very good. As a result, he paid 300,000 yuan for the business, but after taking over the business, the business was not the same. Plans to sue the original owner and the real estate agent in the middle. The other party later agreed to repay him NT$60,000, but after learning of the case, a lawyer said he could get at least NT$120,000 back on his behalf. "Now not only can't we get 60,000 yuan, but we have to pay the lawyer more legal fees. The worst part is that the restaurant can't even be sold at half price." Mr. Chen revealed that he is currently negotiating with other lawyers to sue the original owner for fraud and lawyer negligence. Real estate lawyer Xiao Peifu pointed out that the most typical case of lawsuits arising from the purchase and sale of Chinese restaurants is that the new owner's business is not good, and he thinks that the old owner has falsely reported sales, so he goes back to sue the old owner. However, if there is insufficient evidence, sometimes the jury will think that the new owner does not know how to run the restaurant and the business has declined. There are also disputes when the new owner changes the menu and business deteriorates, but the new owner is oblivious and blames the old owner. If someone buys a Sichuan restaurant and then changes it to a Cantonese-style restaurant, it may cause the loss of old customers. He suggested that before buying a Chinese restaurant, you should ask to see the other party’s income tax forms, operating profit and loss statements and other written information filed in the past three years. In addition to doing your homework, it is best to hire professional real estate agents, accountants and lawyers to help complete the transaction and protect your own interests. Gong Quanwei, CEO of the American Chinese Restaurant Association, said that when buying a restaurant, in addition to asking to check the other party’s credit card business records, it is best to also conduct overt and covert visits, such as going to the other restaurant on weekends to check the customer flow, so as to avoid being exaggerated by the other party. But location matters to a restaurant's success. In addition, it also depends on how the industry packages the products and supervises the process.