Buying a bar in Benidorm is a complex endeavour that requires you to create a checklist to ensure important issues are dealt with.
Buying a bar in Benidorm is a complex endeavour that requires you to create a checklist to ensure that a number of important issues are dealt with, before – frankly – giving away any money to get a supposed right in the bar you are interested in taking over.
Yes, there’s the customary fact that everyone is going to ask you some money to be paid beforehand as a kind of deposit in order that you would ‘supposedly’ get the reservation and first choice to get the bar; please take extreme care – this is money hard to get back if you later discover any unexpected issues on the way to finally get the business. For example:
- Did you know that you may be held liable for wages arrears of the employees of the current owner? Maybe you want the bar, but not the staff!
- Are you sure the person who is offering you the business has the right to pass it on to you at all? Maybe he is a tenant, maybe he even owes some rent and maybe he has not got the right to sell-on the contract to run the bar, so you are paying a person who is just hoping to get your money and then leave
- You have seen the business running, but this doesn’t mean that the bar has an appropriate license for that live music show or to play bingo, or just to make the refurbishment you were planning?
- Very likely the restroom is not adequate for disabled people and so you’ve got an obsolete license which will bring you problems if a neighbour is not happy with you and makes a formal complaint to the authorities.
- Many bars have covered parts of the external area of the bar to hold more customers, that in fact ought to be open to the public to walk through.
- The tables and chairs on the terraces might require the payment of fees to the Town Hall or an additional rent to the building, or they may be even totally illegal (ocupación de vía pública)…
So, in all honesty our advice – after almost 30 years of practising law – is that you are extremely cautious when considering buying a bar in Benidorm and make sure to get independent legal advice before paying anything just to be sure everything is in order and you don’t risk your savings, your efforts and your dreams to someone who just pretends that everything is fine because he has the urge to get the business sold.
Once you are fully informed about all the details and risks involved in the potential purchase, you can make the right decision to proceed, negotiate a reduction in price or alternatively to leave it as the business is not exactly what you thought you were going to get.