Although we are still dealing with the corona pandemic, the first "cautious" signs of the recovery are visible.
As catering brokers, we also notice that the demand for catering companies is increasing and that there is a scarce supply of good companies. Fortunately, we can still regularly congratulate parties on the sale or purchase of a beautiful business.
With the recovery of the market, however, we also regularly see a problem that used to be common again, and that is the issue of “De Substitution”. We tell you all about it! Read more below.
You have fallen in love with a catering establishment. And the bullet is through the church: 'that is the location I'm looking for'.
The takeover of the catering industry is very complicated and it is therefore wise to have an experienced catering broker assist you. Someone who thinks along with your situation
and gives you the right guidance throughout the entire process. As a catering broker, we help you with the entire process of taking over the catering industry.
For example, you can think of:
Thanks to our many years of experience in the takeover of the catering industry, we can assist you during the entire takeover process. HAP Horecamakelaardij makes it a lot easier for you.
And you can be sure that you are taking the right steps during the takeover of your future catering facility.
A normal rental agreement falls under the regime of art. 7:290 BW. This means that this tenancy law is described in Book 7 of the Civil Code under Article 290.
This means, among other things, that a rental agreement is concluded for the period of 5+5 years whereby the landlord cannot cancel unless there are legal grounds for cancellation, which are very limited. You, as a tenant, can cancel at the end of the current lease term, something that we strongly advise against at all times. because the value of your business partly depends on the remaining term of the lease.
When you as an entrepreneur have sold your business, the new operator must contact the landlord because he wants to take over the current lease and continue it for the remaining term of the agreement.
Before the outbreak of the Corona crisis, this moment was seized by many landlords to significantly increase the rent and as a sitting tenant you actually have your back against the wall. After all, you sold the business on the basis of the existing lease. A higher rent in such cases leads to a lower purchase price and in some situations even causes the buyer to drop out. This was less during Corona, but now the problem is back to normal.
Of course you can tell the landlord that you do not agree and, if necessary, even send a letter want to start the rental price procedure.
In this common procedure, the rent per square meter is determined on the basis of the historical rents of comparable business premises on site. However, these procedures are expensive (think about € 7.500!) and more importantly, they take a lot of time, and that is something that you as a selling party do not have.
If you are considering selling your business, first make an estimate together with your real estate agent whether the current rent is in line with the market. If this is demonstrably (much) too high and the current period of the contract does not last that long, then a discussion with the landlord is the obvious choice. After all, every 5 years a tenant (and landlord) has the right to request a rent review (so why postpone this moment until a later moment and therefore have to settle for a lower yield from your business).
However, if the current rent is too low, this is also a factor to take into account when determining the asking price of your company. After all, there is a good chance that the landlord will ask for an increase, which leads to the situation referred to above.
In both cases it is therefore important to discuss this with your landlord in advance. This is to avoid unpleasant surprises at a later stage of the sales process. In all cases it is useful to have a NEN (stands for unit of standard) certificate on which the correct floor area is indicated, which at least gives clarity to both parties and makes any discussion easier. You already have such a certificate for an amount of approximately € 200,=.
Please feel free to contact us. We like to help you!