What Does It Cost?

[veerman]

Hi there ,

My wife and I are looking if we can start up a restaurant in Thailand. We just want a small restaurant on one of the islands in the south. Not to big, but also not with hotel.Does anybody have idea how much that will cost?

Does anybody know what the chances are of succes. How many peopl have tried this before Is there any infornation on this? My wife thinks this is a good way of to see if we have a good chance.

We look already to all information but ther's always different information.

Hope you can help!

[Patong Bob]

First port of call should be www.phuketgazette.net, the local paper here. Also www.bahtsold.com.

Both list plenty of businesses for sale.

Be very careful, here in Phuket most Thai property owners will only give a three year lease, after that you have to pay keymoney again. i.e. you have to rebuy the business every three years. However, most new businesses are OUT of business by then. My owner hasn't been bad, I have a small bar/restuarant in Patong, but I have seen instances where People have built up a successful business only to have the owner either double the keymoney after three years, or else refuse to renew the lease and put a family member in instead. If you ever come to patong come and see me at Scottie's Bar, and I'll have a chat to you.

One thing you will see repated again and again on this forum :

DON'T BRING MORE MONEY TO THAILAND THAN YOU CAN AFFORD TO LOSE.

Good luck.

[george]

Also check with our forum Sponsor, Sunbelt Asia, http://www.sunbeltasia.com

[Sunbelt Asia]

Patong Bob has given good advice. The lease is the key. I have found though a number of leases in Phuket that were 10 years or more. Much higher numbers than in Bangkok. Make sure the lease is valid and is registered with the Land Bureau. If not than the lease is only valid for 3 years. The cost to register it is 1% of the total rental amount. The best investment you could make!

Most existing businesses with our firm are asset sales where the trade name, assets and goodwill are acquired and put into a new corporation. Hence the old owner will tear up his lease after you negotiate with the landlord. Give the landlord more but lock in no increase for at least the first 6 years. You'll save a ton in the long run. Example. He wants 70,000 Baht per month. Offer him 75,000 a month but no increase for the first 6 years and then a 10% increase for year 7-9. A large # of Landlords can be greedy and will jump at it. Then make sure the lease is registered with the Land Department.

We have 37 restaurants in Phuket that can be acquired by a new owner on our website www.sunbeltasia.com Feel free to take a look they range from 500,000 Baht on up.

Whatever you do, do due diligence and have a well written asset purchase agreement with clauses that will cover the credit card machines, bank accounts, non-competition, no solicitation of employees, no liens on the assets, etc etc.

If you find a restaurant on your own that you acquire and you like to have help with the due diligence. Our professional fee is 2,000 Baht per one million Baht of proposed acquisition

(Example: restaurant to be sold at 2.5 million would be 5,000 Baht in fees)

Note: Due to Conflict of Interest, Sunbelt Lawyers cannot do Due Diligence on Sunbelt Asia listings.

www.sunbeltasia.com

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