Closing a Restaurant Business Checklist

While every restaurant closing is different and unique, this checklist is designed to help you identify, antic
associated with closing your business. You will probably run into issues that are not reflected on this chec
accordingly and please let us know so we can continue to make this as comprehensive as possible. You ca
info@restaurantowner.com. Thanks!

Instructions & Tips:

Before you begin work, save this worksheet and create a working copy using the File, Save As command.
We recommend that you work on each worksheet in the order in which it appears in the tabs below, from le

NOTE: This checklist should be used as a reference only. Consult with an attorney for legal advice
This checklist was designed primarily for situations where ownership is closing the busines
If you are selling your business then some items in the list may not apply.

Copyright © 2014 by RestaurantOwner.com

gned to help you identify, anticipate and plan for the tasks
t are not reflected on this checklist. If so, add these
prehensive as possible. You can email any comments to

g the File, Save As command.

pears in the tabs below, from left to right.

h an attorney for legal advice.

ership is closing the business, not selling.
not apply.
Closing a Restaurant Business
üChecklist
* Consult with a qualified attorney before taking action
Phase Category Activity Notes
Check with state to determine if Alcoholic Beverage License can be sold or
Business
Preparation Licenses/Permits
transferred

Prepare Customer Notification Plan

- determine best time to announce closing plans
Preparation Customers - offer final days specials
- cancel future reservations

Prepare Employee Notification Plan

- determine best time to announce closing plans
Preparation Employees - offer incentive to stay until final days
- prepare letters of recommendation

Compile list of all lease and contract obligations

Lease/Contract - make list of personal guarantees
Preparation Obligations - make list of equipment with liens or UCC filing

Consult with bankruptcy attorney

- determine if bankruptcy protection is needed
Preparation Finance/Legal - set funds aside for attorney before paying bills

Select attorney
- review/negotiate lease exit agreement
Preparation Finance/Legal - review potential liabilities, liens, compliance issues

Initiate forwarding address for mail

Preparation Finance/Legal - consult attorney first
- setup post office box to receive forwarded mail
Arrange for moving and storage of furniture and equipment
- inform leased equipment lien holders of plan to close
- schedule lien holder's pickup of equipment
- contract storage facility for remainder of equipment
Preparation FF&E - identify fixtures that are part of the leasehold improvements
- leasehold fixtures cannot be removed from premises
- consult attorney

Prepare budget
- investigate potential sources for capital
- asset sales, product returns, equipment sales
Preparation Raise Funds - project final purchases
- consult attorney

Arrange sale of equipment

- compile detailed list of all equipment and furniture
- verify & evaluate condition
Preparation Raise Funds - contact used equipment dealers, other restaurants, etc.
- consult attorney

Customer database
- obtain all guest data available, including mailing lists, databases, loyalty
programs, etc.
Preparation Raise Funds - determine sales value to competing restaurant
- consult attorney

Gift certificates
- outstanding liability
Preparation Liability Concerns - review state law for obligations
- consult attorney

Review vendor payment terms

- make list of personal guarantees
Preparation Vendors - estimate remaining purchases needed

Check into outstanding property tax liability against the business or personal
Preparation Finance/Legal property

Collect all keys from employees

Preparation Security

Insurance
- inform agent of business closing; discover coverage needs
Preparation Vendors - verify that building & contents are covered after closing
- cancel unneeded coverage such as business interruption, liquor liability, etc.

Preparation Other
Preparation Other
Preparation Other
Preparation Other

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Closing a Restaurant Business
üChecklist
* Consult with a qualified attorney before taking action
Phase Category Activity Notes
Close bank accounts
Post-closing Bank Accounts

Ansul/Sprinkler systems
Building
Post-closing Preparation
- make sure systems are disconnected

Exits
Building - lock all doors before vacating building
Post-closing Preparation - turn in keys to landlord

Electric panel
Building
Post-closing Preparation
- turn off all switches and breakers

Refrigeration & freezers

Building - remove all product
Post-closing Preparation - remove locks

Business Cancel state/local sales tax permit

Post-closing Licenses/Permits
Prepare final payroll checks
Post-closing Employees - ensure funds are available

Water service
- turn off water at meter
Post-closing Vendors - turn off water supply to all appliances

Cable or Satellite TV
- cancel service
Post-closing Vendors - schedule pickup of equipment

Music
- cancel music service
Post-closing Vendors - schedule pickup of leased equipment

Dishwasher service
- cancel service
Post-closing Vendors - schedule pickup of equipment

Laundry & linen

- check contract terms; liability
Post-closing Vendors - cancel service
- arrange pickup of inventory

Pest control
Post-closing Vendors - cancel scheduled services

Trash disposal
- check contract terms
Post-closing Vendors - schedule final pickup of equipment

Vending machines
- cancel & schedule pickup
Post-closing Vendors - settle outstanding commissions

Contact all vendors

- Confirm outstanding balances and whom will be responsible (as per purchase
Post-closing Vendors agreement)
- Prepare letter to vendors

Utilities billing changes

- change mailing address/party responsible for utility bills
Post-closing Vendors - shut off electrical, gas, water once building is vacated

Yellow page ad
Post-closing Vendors - cancel

Internet service provider

- cancel website hosting
Post-closing Vendors - determine sales value to another restaurant

Bank supplies
- destroy deposit stamp &, unused checks and deposit slips
Post-closing Finance/Legal for closed accounts

Credit card merchant accounts

Post-closing Finance/Legal - Cancel all accounts for MC/Visa, Amex, Discover
once final deposits are received

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Closing a Restaurant Business
üChecklist
* Consult with a qualified attorney before taking action
Phase Category Activity Notes
Closing inventory
- take full physical inventory on remaining food & beverage items day after closing
Post-closing Records

Insurance
Post-closing Liability Concerns - verify with your agent that all policies are in force

Change alarm codes and passwords

Post-closing Liability Concerns

POS system
- print hard copy of final sales reports
Post-closing Records - print hard copy of payroll reports
- retain all records

Obtain copies of all past reports filed - sales tax, liquor taxes, federal and state
Post-closing Records reports, etc.

Employee files
- obtain all personnel records - applications, I-9, W-4, disciplinary action,
Post-closing Records reviews, etc. [Must keep on file for 3 years]

Get combinations for safes and change dispensers

Post-closing Security - have combination changed if retaining space

Have all locks re-keyed if retaining possession of building

Post-closing Security

File final state tax returns

- SUTA
- Employer's taxes
Post-closing State Taxes - For list of state agencies visit
http://www.irs.gov/businesses/small/article/0,,id=99021,00.html

File final quarterly or annual employment tax form.

Post-closing Federal Taxes - Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
- Form 941, Employer's Quarterly Federal Tax Return
Issue final wage and withholding information to employees
Post-closing Federal Taxes
- Form W-2, Wage and Tax Statement
Report information from W-2s issued.
Post-closing Federal Taxes
- Form W-3, Transmittal of Income and Tax Statements
File final tip income and allocated tips information return.
Post-closing Federal Taxes - Form 8027, Employer's Annual Information Return of Tip Income and
Allocated Tips
Report capital gains or losses.
- Form 1040, U.S. Individual Income Tax Return (PDF)
Post-closing Federal Taxes - Form 1065, U.S. Partnership Return of Income (PDF)
- Form 1120 (Schedule D), Capital Gains and Losses
Issue payment information to sub-contractors.
Post-closing Federal Taxes
- Form 1099-MISC, Miscellaneous Income
Report corporate dissolution or liquidation.
Post-closing Federal Taxes
- Form 966, Corporate Dissolution or Liquidation
Report business asset sales.
Post-closing Federal Taxes
- Form 8594, Asset Acquisition Statement
Report the sale or exchange of property used in your trade or business.
Post-closing Federal Taxes
- Form 4797, Sales of Business Property
Post-closing Other
Post-closing Other
Post-closing Other
Post-closing Other
Post-closing Other
Post-closing Other
Post-closing Other
Post-closing Other

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