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Restaurant Purchase Agreement for Philippines

Restaurant Purchase Agreement Template for Philippines

A comprehensive legal agreement governed by Philippine law that facilitates the sale and purchase of a restaurant business. The document covers all aspects of the transaction including the transfer of assets, equipment, inventory, licenses, permits, and potentially employees. It ensures compliance with Philippine food safety regulations, local government requirements, and business transfer laws while protecting both parties' interests. The agreement includes detailed provisions for purchase price, payment terms, representations and warranties, due diligence requirements, and operational transition procedures specific to restaurant operations in the Philippine context.

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What is a Restaurant Purchase Agreement?

The Restaurant Purchase Agreement is a crucial legal document used when transferring ownership of a restaurant business in the Philippines. It is essential for transactions involving the sale of both standalone restaurants and franchise operations, ensuring compliance with Philippine business laws, food safety regulations, and local government requirements. The agreement typically covers the complete scope of the transaction, including transfer of physical assets, equipment, inventory, intellectual property, permits, licenses, and potentially employees. It provides protection for both seller and purchaser by clearly defining the terms of sale, representations and warranties, indemnification provisions, and transition procedures. The document must align with various Philippine regulations including the Civil Code, Food Safety Act, and Local Government Code, making it a comprehensive framework for restaurant business transfers in the Philippine jurisdiction.

What sections should be included in a Restaurant Purchase Agreement?

1. Parties: Identification of the seller and purchaser with complete legal names and addresses

2. Background: Context of the transaction, including brief description of the restaurant business and reason for sale

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Core transaction terms including what is being sold and purchased

5. Purchase Price: Details of the purchase price, payment terms, and any adjustments

6. Assets and Inventory: Detailed description of assets included in the sale, including equipment, fixtures, and inventory

7. Liabilities: Clear statement of which liabilities are assumed by the purchaser and which remain with the seller

8. Closing: Closing date, conditions precedent, and closing deliverables

9. Seller's Representations and Warranties: Warranties regarding business ownership, operations, compliance, and financial statements

10. Purchaser's Representations and Warranties: Warranties regarding legal capacity and financial ability to complete the purchase

11. Due Diligence: Purchaser's rights to inspect and verify business records and assets

12. Regulatory Compliance: Compliance with Philippine food safety laws, permits, and licenses

13. Handover and Transition: Process for business transition and handover of operations

14. Indemnification: Mutual indemnification provisions for breaches and claims

15. Governing Law and Dispute Resolution: Philippine law as governing law and dispute resolution mechanisms

16. General Provisions: Standard boilerplate provisions including notices, amendments, and severability

What sections are optional to include in a Restaurant Purchase Agreement?

1. Employee Matters: Terms regarding transfer or termination of employees - include if employees will be transferred to the purchaser

2. Intellectual Property: Transfer of trademarks, recipes, and other IP - include if significant IP assets exist

3. Franchise Provisions: Special provisions if the restaurant is part of a franchise system

4. Real Property: Provisions for transfer or assignment of lease - include if real property or lease transfer is involved

5. Non-Compete: Restrictions on seller's future restaurant operations - include if competitive restrictions are desired

6. Training: Seller's obligation to train purchaser - include if operational training is part of the deal

7. Outstanding Gift Certificates: Handling of existing gift certificates and loyalty programs - include if such programs exist

8. Environmental Matters: Environmental compliance and liability - include if property transfer is involved

What schedules should be included in a Restaurant Purchase Agreement?

1. Schedule A - Asset Inventory: Detailed list of all physical assets included in the sale

2. Schedule B - Equipment List: Detailed inventory of kitchen and restaurant equipment

3. Schedule C - Contracts and Agreements: List of assigned contracts, supplier agreements, and service contracts

4. Schedule D - Permits and Licenses: List of all current permits and licenses

5. Schedule E - Employee Information: List of employees, positions, and employment terms if relevant

6. Schedule F - Financial Statements: Recent financial statements and tax returns

7. Schedule G - Lease Documents: Copies of lease agreements if applicable

8. Schedule H - Intellectual Property: List of trademarks, trade names, recipes, and other IP

9. Appendix 1 - Form of Bill of Sale: Template for the formal transfer of assets

10. Appendix 2 - Closing Checklist: List of all required closing deliverables and actions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions










Clauses








































Relevant Industries

Food & Beverage

Hospitality

Restaurant

Retail

Real Estate

Franchising

Small Business

Food Service

Relevant Teams

Legal

Finance

Operations

Compliance

Due Diligence

Commercial

Mergers & Acquisitions

Business Development

Risk Management

Property Management

Relevant Roles

Business Owner

Restaurant Owner

Chief Executive Officer

Chief Financial Officer

General Counsel

Legal Counsel

Corporate Lawyer

Business Development Manager

Operations Director

Restaurant Manager

Franchise Manager

Compliance Officer

Due Diligence Officer

Commercial Director

Merger & Acquisition Specialist

Business Broker

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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