Commercial
Buying a Restaurant in Ontario
3 min readPublished
Quick answer
Before buying a restaurant in Ontario, confirm the landlord will consent to assigning the lease, check that the liquor licence can be dealt with through the AGCO, read the public health inspection history, and, for a franchise, get the franchisor's approval. Then verify sales against tax filings, not only the seller's summary.
Key facts: buying a restaurant in Ontario
| Liquor licensing | AGCO |
|---|---|
| Food safety | Local public health unit (O. Reg. 493/17, Food Premises) |
| Usually the biggest risk | The lease: term, renewal and assignment |
The restaurant lease and landlord consent
A restaurant is often only worth what its lease allows. Most commercial leases need the landlord's consent to an assignment, and the landlord may ask for your financials, a personal guarantee or a new lease. Check the remaining term and renewal options, the permitted use (for example, whether a liquor-licensed restaurant or a take-out counter is allowed), exclusivity and the additional rent (TMI).
Liquor licence, health inspections and permits
The Alcohol and Gaming Commission of Ontario (AGCO) licenses the sale of alcohol. A liquor sales licence is tied to the licensee and the premises, so a change of ownership requires dealing with the AGCO; ask your lawyer how the transfer or new application will be handled and make the offer conditional on it.
Local public health units inspect food premises under Ontario's Food Premises regulation. Ask for the inspection history, check posted results where your health unit publishes them, and confirm food handler certification for staff.
- Municipal business licence and zoning for the use
- Fire Code inspection and occupant load for a licensed dining room
- Kitchen exhaust, grease trap and hood suppression service records
- Equipment list: owned, leased or financed
Franchise restaurants and the numbers
Buying a franchised location needs the franchisor's approval, often training, and sometimes a renovation or a new franchise agreement. Read the agreement's transfer clause and the fees you would pay.
Ask for at least two years of financial statements, sales tax (HST) filings and point-of-sale reports. Compare food, labour and occupancy costs against sales, and make the offer conditional on your accountant's review.
Financing restaurants in Ontario
Buying a business usually means buying its assets and goodwill (an asset purchase) or buying the company that owns them (a share purchase). The structure changes what liabilities you inherit, how the price is taxed and what a lender will finance, so decide it with your lawyer and accountant before the offer.
Lenders will want the business's financial statements and tax returns, the lease or title, and your own experience in the industry. BDC lends to small and medium-sized Canadian businesses, and many banks lend under the federal Canada Small Business Financing Program for equipment, leasehold improvements and real property. A vendor take-back, where the seller finances part of the price, is also common in business sales. No lender approval, rate or term is guaranteed: talk to a commercial lender or mortgage professional before you make an offer.
Where to find restaurants for sale
Summitly's category pages list the restaurants on the MLS® system right now, city by city, with the live count and the newest listings. A page with too few live listings to be useful is kept out of search results until inventory returns.
- Restaurants for sale in Toronto
- Restaurants for sale in Mississauga
- Restaurants for sale in Brampton
- Restaurants for sale in Hamilton
- Restaurants for sale in Ottawa
- Coffee shops for sale in Toronto
- Coffee shops for sale in Mississauga
- Coffee shops for sale in Brampton
- Coffee shops for sale in Hamilton
- Coffee shops for sale in Ottawa
How Coldwell Banker Summit Realty helps with restaurants
Coldwell Banker Summit Realty, Brokerage is a RECO-registered Ontario brokerage with access to the Coldwell Banker Commercial program. A licensed REALTOR® can shortlist listings, request the financial package and documents the seller's side will release, structure an offer with the conditions this guide describes, and coordinate with your lawyer, accountant and lender.
This guide is general information for buyers in Ontario, not legal, tax, lending or environmental advice. Rules change and every deal is different: confirm each point with your lawyer, accountant, lender and the regulator named before you firm up an offer.
Key takeaways: buying a restaurant in Ontario
- The lease decides the deal: check term, renewal, permitted use and assignment consent
- A liquor licence is dealt with through the AGCO on a change of ownership
- Read the public health inspection history and equipment records
- Verify sales against HST filings and point-of-sale reports
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Buying a restaurant in Ontario: frequently asked questions
Does a liquor licence transfer when I buy a restaurant in Ontario?
Not automatically. Liquor licensing is handled by the AGCO and is tied to the licensee and the premises, so a new owner has to deal with the AGCO. Ask your lawyer how it applies to your purchase and make the offer conditional on it.
What should I check in a restaurant lease?
The remaining term and renewal options, the permitted use, the landlord's consent to assignment and what it requires, additional rent (TMI), exclusivity, and who is responsible for the kitchen's mechanical systems.
Do I need the franchisor's approval to buy a franchised restaurant?
Almost always. Franchise agreements usually require the franchisor to approve a new owner and may require training, fees or renovations.
Is this legal advice?
No. It is general information. Confirm each point with your lawyer, accountant, lender, the AGCO and your public health unit.
Sources
Published by Summitly, the website of Coldwell Banker Summit Realty, Brokerage, registered with the Real Estate Council of Ontario (RECO); an independently owned and operated Coldwell Banker franchise. Broker of Record: Waqar Afzal. Questions or corrections: our contact form. How we write and check these pages: editorial policy.
Cite this guide
Summitly Editorial. (2026, September 28). Buying a Restaurant in Ontario. Summitly (Coldwell Banker Summit Realty, Brokerage). https://www.summitly.ca/guides/buying-a-restaurant-ontario
Guide URLs never change. Section links are stable too.
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