Restaurant Purchase Agreement for United Arab Emirates

Restaurant Purchase Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that facilitates the transfer of ownership of a restaurant business from a seller to a purchaser. The document covers all aspects of the transaction including the sale of tangible assets (equipment, inventory, fixtures), intangible assets (goodwill, recipes, brand), transfer of licenses, employee matters, and operational transition. It ensures compliance with UAE commercial laws, food safety regulations, and local municipality requirements while protecting both parties' interests through warranties, indemnities, and specific completion mechanisms.

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What is a Restaurant Purchase Agreement?

The Restaurant Purchase Agreement is a vital legal document used in the UAE when transferring ownership of an established restaurant business. It is essential for transactions involving the sale of restaurants, cafes, or similar food service establishments, ensuring compliance with UAE federal and local emirate laws. The agreement comprehensively covers the transfer of physical assets, equipment, licenses, permits, intellectual property, and sometimes employee contracts. It includes specific provisions required under UAE commercial law, food safety regulations, and municipality requirements. This document is particularly important given the UAE's strict regulatory environment for food establishments and the need to maintain proper licensing and operational standards during ownership transitions. The agreement typically requires coordination with various governmental authorities and must account for local business practices and regulatory requirements specific to the emirate where the restaurant is located.

What sections should be included in a Restaurant Purchase Agreement?

1. Parties: Identification of Seller and Purchaser with full legal names and registration details

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

3. Definitions: Key terms used throughout the agreement, including Business, Assets, Completion Date, etc.

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

5. Purchase Price: Purchase price, payment terms, deposit requirements, and adjustment mechanisms

6. Conditions Precedent: Conditions that must be satisfied before completion, including regulatory approvals and licenses

7. Pre-Completion Obligations: Parties' obligations between signing and completion, including business operation requirements

8. Completion: Completion mechanics, timing, and deliverables

9. Seller's Warranties: Warranties regarding business, assets, employees, licenses, and compliance

10. Purchaser's Warranties: Basic warranties regarding capacity to purchase and fund the transaction

11. Liability and Indemnities: Liability provisions and indemnification obligations

12. Post-Completion Obligations: Ongoing obligations after completion, including transition support

13. Confidentiality: Confidentiality obligations regarding transaction and business information

14. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction provisions

15. General Provisions: Standard boilerplate provisions including notices, amendments, and entire agreement

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

1. Employee Matters: Detailed provisions for employee transfers - include if staff will transfer to purchaser

2. Intellectual Property: Specific IP transfer provisions - include if significant brand value or proprietary recipes

3. Property Lease: Provisions dealing with transfer/assignment of lease - include if premises lease is part of transaction

4. Non-Compete: Restrictions on seller's future competing activities - include if protecting territorial rights

5. Earn-out Provisions: Performance-based additional payments - include if part of purchase price is contingent on future performance

6. Tax Covenant: Specific tax-related provisions - include if significant tax implications or structuring

7. Environmental Matters: Environmental compliance and liability - include if premises owned or environmental concerns exist

What schedules should be included in a Restaurant Purchase Agreement?

1. Asset Schedule: Detailed list of all assets included in the sale

2. Excluded Assets: List of assets specifically excluded from the sale

3. Equipment and Inventory: Detailed inventory of restaurant equipment and current stock

4. Employees: List of employees with key terms of employment

5. Licenses and Permits: List of all operational licenses and permits

6. Lease Details: Copy or key terms of premises lease

7. Intellectual Property: List of transferred IP including trademarks, recipes, and trade secrets

8. Form of Handover Certificate: Template for completion documentation

9. Completion Checklist: List of actions and deliverables required for completion

Authors

Alex Denne

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

Publisher

Genie AI

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Food & Beverage

Hospitality

Retail

Commercial Real Estate

Franchise Operations

Small Business

Leisure & Entertainment

Food Service

Restaurant Management

Relevant Teams

Legal

Finance

Operations

Compliance

Risk Management

Business Development

Property Management

Commercial

Mergers & Acquisitions

Food Safety & Quality

Relevant Roles

Business Owner

Restaurant Manager

Chief Executive Officer

Chief Financial Officer

Commercial Director

Legal Counsel

Corporate Lawyer

Business Development Manager

Operations Director

Franchise Manager

Compliance Officer

Risk Manager

Investment Manager

Property Manager

Restaurant Consultant

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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