Let’s Make A Deal

QSR magazine:

Rodger Head, CEO of Duke & King Acquisition Corp, takes big risks and gets big rewards when his company buys distressed units. He tells you how to do it right.

Q: Is it smart to buy my second store off a franchisee who’s in over his head?
There are a lot of challenges restaurateurs can run into when acquiring a unit that’s already in operation.

Some of the biggest ones are the unexpected time it takes to close the deal in the first place. There are a lot of unpredictable particulars that pop up. Our last deal took nine months.

Usually, if the seller is selling, it’s for a reason. So your holdups come from that. If they didn’t have a succession plan in place or they’re in financial trouble—and it’s usually the latter—it becomes difficult because you’re dealing with creditors, and the seller is trying to get the best deal he can get. So the financial stability of the seller in many cases becomes a big challenge.

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