Buying or selling an existing Kelseys Original Roadhouse is a full-service restaurant resale with a roadhouse twist — the liquor licence, the lease, and the health-unit inspection all move on their own clocks, and the suburban plaza or free-standing pad site the restaurant sits on tends to carry more square footage, and more equipment, than a quick-service resale.
Kelseys Original Roadhouse resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.
Getting approved
The offer sets price and structure — asset or share — and should build in the conditions that actually matter for a licensed roadhouse: franchisor consent, landlord consent, and AGCO licence transfer, not just financing.
1–2 weeks†The franchisor reviews the incoming operator and the proposed deal terms before consenting to the transfer of that specific location.
3–6 weeks†An Arthur Wishart Act disclosure document may still be required even where the deal is framed as a private resale — Ontario courts read the exemption narrowly, so this gets confirmed early.
assessed early†Getting to closing
The lease assignment, the AGCO liquor licence transfer, and a health-unit inspection or notice of change of operator typically run in parallel, on three separate clocks, and none of them waits for the others.
often the critical path†The franchisor typically requires the incoming owner, or a designated manager, to complete a training program before or shortly after closing.
2–4 weeks, overlapping other steps†Funds, keys, and signed documents change hands, alongside an inventory count and whatever interim licence-handover mechanism bridges the gap until the AGCO transfer is finalized.
1 day, once conditions are met†Listed among Recipe Unlimited's franchisable brands on its official franchising page
Ontario-founded casual-dining chain with a meaningful share of locations in the province
This is the first real decision in a Kelseys Original Roadhouse resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.
| Question | Asset purchase | Share purchase |
|---|---|---|
| What you buy | The location's assets — kitchen and bar equipment, leasehold improvements, inventory, the lease, and the existing franchise agreement's benefit, subject to consent. | The shares of the operating company — every location it holds, and everything the company owes. |
| Franchisor consent & ROFR | Required for the specific location changing hands. | Required for the change of control itself, across every location the corporation operates. |
| The AGCO liquor licence | Transfer application, or a new licence bridged by an interim authorization to keep serving while it's processed. | Stays with the corporation, but AGCO must be notified of the ownership change. |
| The lease | Needs landlord consent to assign, timed alongside the franchisor's own approval — often the pacing item on a larger-format location. | Usually stays in place unless the lease has its own change-of-control clause. |
| Staff | Employment Standards Act continuity rules typically apply to how staff carry over. | Employment generally continues uninterrupted — the employer doesn't change. |
| Tax angle | Buyer gets a stepped-up cost base on the assets purchased. | Seller may access the lifetime capital gains exemption on qualifying shares. |
The location's assets — kitchen and bar equipment, leasehold improvements, inventory, the lease, and the existing franchise agreement's benefit, subject to consent.
The shares of the operating company — every location it holds, and everything the company owes.
Required for the specific location changing hands.
Required for the change of control itself, across every location the corporation operates.
Transfer application, or a new licence bridged by an interim authorization to keep serving while it's processed.
Stays with the corporation, but AGCO must be notified of the ownership change.
Needs landlord consent to assign, timed alongside the franchisor's own approval — often the pacing item on a larger-format location.
Usually stays in place unless the lease has its own change-of-control clause.
Employment Standards Act continuity rules typically apply to how staff carry over.
Employment generally continues uninterrupted — the employer doesn't change.
Buyer gets a stepped-up cost base on the assets purchased.
Seller may access the lifetime capital gains exemption on qualifying shares.
We tell you which structure fits — before you sign anything.
No open-ended hourly surprises — the cost is confirmed in writing before any work begins.
| Type of work | Fee | How it's confirmed |
|---|---|---|
| Straightforward purchase or sale | Starting from $3,388.87 Our charges · taxes included | Confirmed in writing once we see the agreement. |
| Larger or more complex deal | Quoted to scope | Short call → fixed written quote before any work begins. |
| Searches, filings & third-party fees | At cost | Itemized on your invoice, not marked up. |
A single Kelseys location with a straightforward lease, changing hands between one buyer and one seller.
Start my file →A multi-location operator selling several restaurants as one operating company, or a resale where the franchisor's right of first refusal needs to be worked through before terms are final.
Book a consultation →Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.
Not necessarily. Ontario courts have read the resale-disclosure exemption narrowly, and franchisor involvement in the resale can be enough to trigger a full disclosure requirement anyway — we confirm early whether it applies to your deal.
Not inherently — AGCO's review focuses on the specific licensee and premises, not on whether the business operates under a franchise banner. What can add time is coordinating the franchisor's own consent alongside the AGCO application, which we sequence together rather than leaving to chance.
Kitchen and bar equipment, furniture, and fixtures are typically itemized in the purchase agreement, with condition and ownership — owned, leased, or financed — confirmed through diligence rather than assumed from a walkthrough.
On most asset-sale deals, Employment Standards Act continuity rules can carry over length of service and shape exposure if a role changes or ends. We walk through the numbers for your specific staff before you commit to a structure.
Often, yes. Buying an operating company that holds multiple locations is more commonly done as a share purchase, so every location's franchise agreement, licence, and lease stay intact at the same time.
Related
Where we close franchise resale deals
Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by Kelseys Original Roadhouse or its franchisor.
Tell us about your Kelseys Original Roadhouse resale — we'll point you the right way and confirm the cost in writing before any work begins.