Deciding to purchase a business will be one of the largest financial investments of your life so it is important to get the investment right at the earliest possible opportunity.
Although there are no specific rules and regulations relating to fish and chip shop establishments it is most important to take a proactive approach to food and safety related issues. Below are some of the issues to be considered when purchasing a fish & chip shop business.
The Food Safety Act 1990 ('1990 Act') makes it an offence for anyone to sell or possess for sale food which is: injurious to health; unfit to eat; falsely described, advertised or presented; or is not of the nature, substance or quality demanded. Punishment available under the 1990 Act includes fines and imprisonment. Enforcement officers of local health authorities have the right to inspect the premises at all reasonable hours without notice and have power to shut down the business as a result of any major breaches.
The 1990 Act makes it an offence for anyone to describe a food in a way which is false or likely to mislead as to its nature or quality. The Food Labelling Regulations set out in detail the information to be provided on food labels, menu boards or advertising in order to satisfy this requirement.
Breach of the regulations will amount to a criminal offence, and may result in a fine of up to £5,000 in respect of each product.
It is necessary for a new business to register 28 days before opening with the relevant local authority as a food business establishment.
Under the Licensing Act 2003 all late night takeaways and cafes which serve hot food or drink to the public on or from the premises between 11pm and 5am must apply for a premises licence. If the business already has an existing premises licence it will be necessary for this to be transferred to the new owner.
Prior to the Act owners of these businesses did not need a licence. A personal licence is not required for non-selling alcohol establishments. Breach of the licensing legislation could mean a fine up to the sum of £20,000 or up to 6 months imprisonment or both. You can apply for a licence directly from your local council.
Due to the nature of the business specific risks resulting from accidents at work, contamination, health and safety issues and closure as a result of any of the previous are relevant. Consider the need for adequate insurance cover to protect you from claims from employees, customers and the local health authority.
In the food and drinks industry, the key element is the supply chain. Accordingly, the strength of the business's contractual arrangements with its suppliers is crucial. Do valid contracts exist which explain each party's obligations? Make sure that these contracts can be transferred to you otherwise you could find yourself without a reliable supplier.
It is important to establish that the business has permission to operate as a fish and chip shop. Details of the current use for the premises can be found by carrying out a local authority search. Depending on the outcome of the search you may need to apply for planning permission or ask the local authority for retrospective consent if the business has been operating without proper authority for some time.
If you would like to discuss any of the matters raised, please ring Malcolm Jones for an initial discussion
Fox Hayes LLP
118 North Street
Leeds
LS2 7AN
Tel: 0113 2496496
These notes are an overview for general information only. They are not intended to replace legal advice for a specific set of circumstances. No responsibility can be accepted for anyone acting or failing to act as a result of anything contained in or omitted from these notes. We would advise business owners to take professional advice on any specific circumstances where they might apply.