Bill of Sale
Secure your WA restaurant sale with a compliant Bill of Sale. Addresses WA Consumer Protection Act, liquor licenses, and equipment disclosures.
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Transferring ownership of a restaurant in Washington involves more than just a handshake; it requires a detailed Bill of Sale to mitigate risks like foodborne illness liability and health code... Read more
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Transferring ownership of a restaurant in Washington involves more than just a handshake; it requires a detailed Bill of Sale to mitigate risks like foodborne illness liability and health code violations. Whether you are selling a high-volume POS system, heavy kitchen equipment, or the entire business entity, our document ensures you stay compliant with the Washington Consumer Protection Act and specific state non-compete restrictions under RCW 49.62. By clearly defining the 'As-Is' condition and verifying your legal ownership free of liens, you protect yourself from future disputes over state and local health code compliance or food safety standards mandated by the FSMA.
Beyond the standard bill of sale sections, this template adds fields specific to Restaurant Owner:
A Bill of Sale serves the core legal purpose of providing proof of the transfer of ownership of an item from the seller to the buyer. It formalizes the transaction and fulfills the legal need for documentation of the sale, aiding in preventing disputes over ownership and clarifying the terms and conditions agreed upon by the parties involved.
Foodborne illness liability
Contracts with suppliers that include indemnification clauses and strict quality control standards, as well as obtaining comprehensive liability insurance.
Health code violations
Regular internal audits and compliance checks with local health department standards, often outlined in employee manuals and operational procedures.
Alcohol service liability (dram shop laws)
Employee training on safe alcohol service, as outlined in employment and training contracts, and securing liquor liability insurance.
Employment-related claims
Clear employment contracts that outline duties, responsibilities, and dispute resolution processes, along with employment practices liability insurance.
For this bill of sale to be legally valid:
Common mistakes to avoid:
Food Safety Modernization Act (FSMA)
Aims to ensure the U.S. food supply is safe by shifting the focus from responding to contamination to preventing it. It is particularly relevant to restaurant owners as they must comply with food safety standards.
Enforced by U.S. Food and Drug Administration (FDA)
Federal Alcohol Administration Act
Regulates the alcohol industry at the federal level, including the issuance of licenses and permits that are required to distribute and sell alcohol.
Enforced by Alcohol and Tobacco Tax and Trade Bureau (TTB)
Occupational Safety and Health Act (OSHA)
Requires employers to provide a safe working environment for employees, which includes maintaining equipment safely and providing necessary training.
Enforced by Occupational Safety and Health Administration (OSHA)
Fair Labor Standards Act (FLSA)
Governs minimum wage, overtime pay, and child labor laws, which are essential for restaurant owners to comply with for their staff.
Enforced by U.S. Department of Labor (DOL)
State and Local Health Codes
State and local health departments enforce specific health and safety standards in restaurants, including sanitation and food handling practices.
Enforced by State and Local Health Departments
Recommended coverage: General Liability Insurance · Liquor Liability Insurance · Workers' Compensation Insurance · Property Insurance · Employment Practices Liability Insurance
Washington law significantly restricts non-compete agreements. If your Bill of Sale includes a non-compete clause for the seller, it must comply with RCW 49.62, which sets specific earnings thresholds (e.g., $100,000 for employees) and limits durations to 18 months unless a longer period is justified by a legitimate business interest.
In Washington, liquor licenses are not automatically transferred via a Bill of Sale. While the physical assets are transferred, the buyer must apply for a new license or a transfer through the Washington State Liquor and Cannabis Board (WSLCB) as per the Federal Alcohol Administration Act and state guidelines.
Yes, by including robust 'Warranties and Disclaimers' and an 'As-Is' clause, you can limit your liability for events occurring after the transfer. Additionally, specifically documenting the transfer of maintenance logs helps demonstrate compliance with FSMA and local health department standards at the time of sale.
While not always strictly required for small equipment, Washington law often requires notarization for high-value transactions or when transferring titled property to ensure enforceability and authenticity in the event of a dispute over the Purchase Price or Seller's Representations.
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