As the title states, there is a small restaurant franchise in my TX metro area that was super popular but went out of business due to COVID. The place now has a for lease sign (it’s a unit in a shopping center) and I’m guessing the previous business owners chapter 11’d.
I’m a huge fan of the product from this franchise and it saw lots of interest due to its popularity in other cities and their instagram popularity.
After speaking with a few friends who own other food industry franchises they recommended I gather 1 year worth of capital in order to acquire and run the business. While we are sure it would self sustain before a year they are on the cautionary side of calculations. Based on the amount labor and franchise fees I’d need about 200K.
What would be the be the best way to go about acquiring this franchise? Should I reach out to the previous owners to buy out their assets and the shopping center for lease? Currently the space is outfitted exactly as corporate would want it so I figured all parties would be incentivized to work with me.
Lastly while I have a few people willing to go in with me from the capital perspective, what are some good ways to access capital for this type of business?