Restaurants and cafés, hotels and accommodation, salons and spas, and fitness studios. Kingston Investments advises owners of privately held hospitality and personal services businesses on valuation, buyer identification, negotiations and the sale process, across Ontario from the Greater Toronto Area.
Restaurants, hotels, salons and studios have different economics, but buyers ask the same three questions of all of them: will the location stay, will the customers and staff stay, and what has to be approved before the keys change hands?
Remaining term, rent and the landlord’s consent can matter as much as the profit.
Liquor licences, franchise agreements and permits each have their own steps and timing.
Clients follow chefs, stylists and trainers, so retention plans are part of the value.
Memberships, packages, gift cards and deposits become the buyer’s, and are reflected in the price.
Each has its own measures of performance and its own risks. Buyers in one rarely judge the others by the same numbers.
Full-service, quick-service and fast-casual restaurants, cafés and bars, independent or franchised.
Independent and branded hotels, motels and inns.
Hair, beauty, barbering, esthetics and spa services.
Boutique studios, personal training and membership gyms.
Buyers look past sales to what is left after food, labour and rent. A small change in food or labour cost, or a rent increase at renewal, can change what a restaurant earns, and what it is worth.
Most hospitality sales depend on approvals from people other than the buyer. Knowing them early sets a realistic timeline and avoids surprises at closing.
This is general information, not legal advice. Requirements depend on your business and location. We plan the sale process around your lawyer’s advice.
The points that most often move the price, the structure of the offer and how long you’re asked to stay.
Remaining term and renewals, rent against sales, visibility, parking and the landlord’s consent terms.
Whether you cook, cut, train or manage every shift. The cost of replacing you is deducted from what a buyer will pay for the earnings.
Tenure of chefs, managers, stylists and trainers, how they are paid and engaged, and whether clients are loyal to the business or to individuals.
Memberships, rebooking rates, catering and corporate accounts, and loyalty programs show how much revenue repeats.
Buyers like to see monthly sales, members or bookings for at least three years.
Food, beverage and labour costs as a share of sales, and how they have held through recent price increases.
A franchise brings brand support and a known system, but also fees, renewal terms and the franchisor’s approval of any buyer.
Reviews, ratings, inspection history and repeat customers. A strong reputation is valuable only if it belongs to the business rather than one person.
Age of kitchen equipment, fit-out and fixtures, and the renovations a landlord, franchisor or buyer will expect.
Curious what your business could be worth?
Answer a few questions about your business and its finances, and an advisor will review them and contact you to discuss a preliminary valuation. You don’t need to be ready to sell.
The buyer pool ranges from multi-unit groups to first-time owners. The right fit depends on size, location and whether the business is a franchise.
Restaurant, salon and fitness groups adding locations. They look closely at site economics and the lease.
Existing franchisees expanding, or franchisors buying back locations, subject to the franchise agreement.
Buyers of established, profitable businesses with managers in place, often across several sites.
Chefs, stylists, trainers and managers buying a business to run themselves, often with bank and vendor financing.
A confidential process that keeps staff and customers settled while the right buyer is found and the approvals are lined up.
Sell-side advisory Business valuationWe normalize owner pay and one-time costs, and look at each location’s sales, costs and lease the way a buyer will.
Lease, licence and franchise requirements are mapped with your lawyer before buyers are approached.
Suitable buyers see an anonymous profile and sign a non-disclosure agreement before learning your name or visiting.
We compare offers on price, financing, prepaid obligations, conditions and your transition role.
We coordinate landlord, franchisor and licence steps with your lawyer, and the handover to the new owner.
Kingston has advised on transactions involving restaurants, cafés, salons and fitness studios, where the lease, the team and the customers all have to carry over to a new owner.
Food & hospitality
Deal value Undisclosed
Sold
View detailsFood & hospitality
Deal value Undisclosed
Sold
View detailsEducation & personal services
Deal value Undisclosed
Sold
View detailsEducation & personal services
Deal value Undisclosed
Sold
View detailsWhat began as an initial conversation ultimately led to the successful sale of my company. Kingston team remained involved throughout the entire process, helped bridge gaps between the parties when obstacles arose, and introduced multiple prospective buyers. Their consistent effort was instrumental in getting the transaction completed.
Short answers to the questions we hear most often. Every business is different, so we’re happy to talk through yours.
All FAQsEstablished restaurants are usually valued on normalized earnings after resetting the owner’s pay, judged against the lease, sales trends, food and labour costs, and how much depends on the owner or chef. Where earnings are thin, a restaurant may sell for little more than the value of its location and equipment. A franchise is valued differently from an independent, because the franchisor’s terms and approval shape the deal. To find out what yours could be worth, request a business valuation: an advisor reviews your figures and contacts you to discuss them.
Not automatically. In Ontario, a change of ownership generally requires a transfer application to the Alcohol and Gaming Commission of Ontario, signed by both the current licensee and the buyer, and a change of 10 per cent or more of a licensee’s shares is treated as a change of ownership. The buyer may only sell alcohol in the meantime with the AGCO’s authorization. Build the timing into the deal.
Your franchise agreement sets the rules. Most require the franchisor to approve the buyer, and many add conditions such as a transfer fee, training, renovations or a new agreement. In Ontario, a franchisee’s resale can be exempt from the franchisor’s disclosure obligations, but only if the sale is not effected by or through the franchisor, so involve a franchise lawyer before marketing the business.
They become an obligation the buyer takes over, so they are usually reflected in the price. Ontario’s consumer protection rules for gym and fitness memberships include a one-year limit on contract length and rules on renewal notices and initiation fees, and buyers will check that your contracts follow them.
In most cases. Restaurant, salon and studio leases usually require the landlord’s consent to an assignment, and many treat a share sale as a change of control. A short remaining term or a difficult landlord can delay a sale or lower its value, so review the lease early.
It depends on how they are engaged and why they work with you. Clients often follow the person who serves them, so buyers will look at retention, how staff are paid, and whether key people are employees or independent renters. Introducing a buyer to key staff at the right moment, with a reason to stay, is part of the plan.
A business broker typically lists a business and responds to the buyers who come forward, which suits many smaller, simpler sales. An M&A advisor, sometimes called a business sale advisor, prepares the business for a buyer’s scrutiny, normalizes the financial statements, approaches suitable buyers confidentially, negotiates price and terms, and manages due diligence through to closing. A single café or salon may suit a broker. A multi-location group, hotel or studio business with several sites usually benefits from an advisor’s preparation and confidential buyer outreach.
No. Many owners talk to us well before they sell, to understand value and what to address first. The conversation is confidential and there is no obligation.
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No sale can be kept perfectly quiet, but a careful process makes a leak much less likely. Here’s how confidentiality works in practice.
Lending part of the price to your buyer can help a deal close. Here’s how a vendor take-back works and how to protect yourself if you agree to one.
Confidential conversation
Start with a confidential conversation about your lease, team and customers, and what a sale could look like. You don’t need to be ready to sell.
