Restaurant Lawyers

Our restaurant legal specialist, Leo Skinner, explains why you might consider hiring a lawyer to support your business:

"Running a restaurant can be challenging when it comes to navigating the legalities. Having a dedicated restaurant lawyer by your side ensures your business stays compliant, mitigates risks and allows you and your business to thrive. Think of us as your trusted partner who wants to protect and grow your business just as much as you do."

A legal specialist can help negotiate favourable terms for your lease, such as rent, lease duration, renewal options , and rent increases, ensuring they align with your restaurant's goals and financial capabilities. 

They'll also review the lease to identify any clauses that could be problematic or expose your business to unnecessary risks, such as clauses related to maintenance responsibilities or early termination penalties.

You'll need to register your business as a sole trader, partnership or a limited company. Then choose a suitable legal structure to ensure you comply with tax and business laws. 

Next, securing the necessary licences and permits is critical, including food and alcohol licences, health and safety certifications, and local permits to operate in your chosen area. You must, for instance, register with your local authority at least 28 days before you start to trade.

You must also adhere to food safety regulations, which may involve passing inspections related to food handling and hygiene practices. Working with a restaurant business lawyer can ensure you meet all of these legal requirements and set your business up for success.  

The franchising process involves several legal complexities, and having expert legal guidance can ensure everything is set up properly.

A restaurant lawyer can assist you in drafting franchise agreements that protect your brand and ensure compliance with franchise laws and regulations. They can also guide you through the legalities of intellectual property (IP) protection to safeguard your brand as you expand.

Franchising also involves financial considerations, such as setting up royalty agreements and ensuring that franchisees understand their obligations. A lawyer can help you structure these arrangements in a way that's fair and sustainable for both parties. 

The first step is to carefully review the terms of the contract or lease agreement to understand your rights. This will help you identify whether the dispute is a result of a breach or misunderstanding of the terms.

Try to resolve the issue through open communication and negotiation. If this doesn't resolve the matter, it's advisable to seek legal assistance from a restaurant law firm. We'll help you assess the situation and guide you through the next steps.  

You should always conduct due diligence to assess financial health, liabilities and compliance with regulations, such as food and employment laws. Evaluate the lease terms of each location and understand any rent arrears or issues with landlords.

Decide whether to purchase assets or shares as each carries different risks. Review employee contracts under the Transfer of Undertakings Protection of Employment (TUPE) regulations, especially regarding potential redundancy or transfer of employment rights.

Ensure supplier relationships are stable and the brand reputation is manageable, particularly if the business has been in financial distress. Understand the tax implications, such as VAT and any tax reliefs, and ensure all required licenses are transferable.

Ensure you have a clear post-acquisition plan for operational integration and revitalising the business, especially across multiple sites.

When buying a restaurant as a going concern, you'll need to comply with TUPE regulations. This means the staff automatically transfer to you as the new employer, with their existing employment terms and conditions protected.

Here's what you should do:

• Notify staff: Inform employees about transfers in advance, ideally in writing. This includes details of the transfer, their rights and how the change of ownership will affect them.
• Review contracts: Ensure you understand the terms of the existing contracts, including pay, benefits, holiday entitlement and any ongoing employment disputes.
• Maintain terms and conditions: You must honour the existing terms and conditions unless you negotiate a new agreement with the employees after the transfer.
• Redundancy considerations: If you need to make staff redundant post-acquisition, always follow the proper process and understand the legal requirements for redundancy pay.
• Consultation and communication: Maintain open communication with staff and, if applicable, their union representatives. This will ensure a smoother transition and address any concerns they may have.