Restaurant Closing Preparation Checklist (Complete Guide to Fixture Transfer, Move-out, and Lease Termination)
Closing a restaurant involves many tasks, and getting the order wrong can lead to unnecessary costs.
In conclusion, the ideal time to start preparing for closure is 6 months in advance. Moving early is especially advantageous for fixture transfers.
This article summarizes the procedures from the decision to close until the completion of the move-out in a chronological checklist format.
Overall Schedule for Closing Preparation
6ヶ月前：意思決定・造作の査定・業者選定
3ヶ月前：貸主への解約通知・造作譲渡の交渉開始
1〜2ヶ月前：各種契約の解約手続き
閉店当日：最終営業・鍵の引き渡し準備
退去後：原状回復・保証金の精算[6 Months Before] Decision Making, Valuation, and Selecting a Contractor
✅ Solidify the decision to close
Once you have decided to close, first organize your financial situation. Check for any outstanding loan balances, remaining lease obligations, or unpaid rent.
✅ Research the market value for fixture transfers
It is important to act while your fixtures still hold value. The longer you operate, the more the equipment deteriorates, reducing the value of the fixtures.
First, check the estimated value using a free AI valuation tool.
👉 Instant AI Valuation for Fixture Transfers | VELETA
✅ Review the lease agreement
Be sure to check the following items:
Notice period for termination (how many months in advance notification is required)
Scope of the obligation to restore to original condition
Security deposit amount and amortization conditions
Whether or not moving out with fixtures left in place (inuki) is permitted
The notice period for termination varies by contract, ranging from 3 to 6 months. If notification is delayed, you will incur extra rent.
✅ Select a fixture transfer contractor
Choosing a contractor that can handle both real estate and interior work will make the process smoother. Rather than requesting multiple companies at once, we recommend narrowing it down to one company to start.
[3 Months Prior] Lease Termination Notice and Fixture Transfer Negotiations
✅ Notify the landlord (owner) of lease termination
Notify the landlord of the termination in writing, following the notice period stipulated in the contract. Do not rely on verbal notice alone, as it can lead to future disputes; always use written documentation.
✅ Obtain permission from the landlord for an 'inuki' (fixture-inclusive) move-out
If you are moving out and leaving fixtures behind, you must obtain the landlord's permission. Permission is more likely to be granted if the landlord wants a similar business type for the next tenant.
✅ Begin searching for a buyer for the fixture transfer
Start recruiting potential next tenants through agencies. The more time you have before closing, the easier it is to find a buyer, which can lead to a higher sale price.
✅ Notify staff and prepare for resignation procedures
Organize procedures for withdrawing from employment and social insurance, confirm the presence of severance pay, and finalize the salary payment schedule. Notify staff 1 to 2 months before the closing date.
[1-2 Months Prior] Termination Procedures for Various Contracts
✅ Cancellation and modification of various services
| Service | Items to Check |
|---|---|
| Electricity, Gas, Water | Apply for service suspension to match the closing date |
| Phone/Internet | Procedures for cancellation or relocation |
| POS System/Cash Register | Return procedures if leased |
| BGM (USEN, etc.) | Check the notice period for cancellation |
| Food/Alcohol Suppliers | Final order date and handling of remaining inventory |
| Kitchen Equipment Lease | Return procedures to the leasing company |
✅ Submit a notification of business closure for the food business license
Submit a notification of business closure to the public health center. The deadline varies by municipality, but it is generally within 10 days after closing.
✅ Submit a notification of abolition for the liquor sales license
If you were selling alcohol, submit a notification of abolition of the liquor sales license to the tax office.
✅ Notification of business closure to the tax office and prefecture
For sole proprietors, submit a 'Notification of Business Closure' to the tax office and a 'Business Discontinuation Report' to the prefectural tax office. For corporations, separate dissolution and liquidation procedures are required.
[Closing Day to Move-out] Restoration to Original Condition and Security Deposit Settlement
✅ Handover of fixtures
Hand over the fixtures to the next tenant. Confirm the condition of the equipment with both parties at the time of handover and document it in writing to prevent disputes.
✅ Restoration Work (in case of skeleton move-out)
If a move-out with fixtures (inuki) is not permitted, restoration work is required. You can reduce costs by obtaining quotes from multiple contractors.
✅ Settlement of Security Deposit
After moving out, the landlord will settle the security deposit. The amount returned will be the balance after deducting depreciation, restoration costs, and unpaid rent. Be sure to check the breakdown of the settlement in writing.
✅ Return of Keys and Equipment
Return the keys to the landlord and confirm the termination of electricity, gas, and water services.
Summary of Closing Costs and Income
| Item | Inuki Move-out | Skeleton Move-out |
|---|---|---|
| Removal Costs | None | 1 to 3 million yen |
| Fixture Transfer Fee | Can be received (average 2 million yen) | None |
| Security Deposit Refund | Returned after depreciation | Returned after depreciation |
| Restoration Costs | Minimal | Incurred separately |
Choosing an inuki move-out can create an economic difference of 3 to 5 million yen compared to a skeleton move-out.
First, check the value of your fixtures
Once you decide to close, the first thing to do is to understand the market value of your fixtures.
With VELETA's free AI assessment tool, you can instantly calculate the estimated fixture transfer fee and the remaining security deposit just by entering the address, rent, and equipment details.
👉 Fixture Transfer Fee AI Assessment in 1 Second | VELETA
Summary
It is ideal to start preparing for closing 6 months in advance
First, check the lease agreement for the notice period, depreciation conditions, and restoration obligations
Fixture transfers tend to fetch higher prices the earlier you act
An inuki move-out can be 3 to 5 million yen more advantageous than a skeleton move-out
Don't forget administrative procedures such as the notification of business closure and the notification of cancellation of food business permits
👉 Related Article: What is the market price for fixture transfer fees in Nagoya? Explained using data from 300 closed deals
👉 Related Article: What happens to fixtures when closing a restaurant? A thorough explanation of the differences between 'inuki' (furnished) and skeleton properties
👉 Related Article: How much of a restaurant security deposit is returned? Explaining the amortization mechanism and how to calculate the remaining balance
VELETA Co., Ltd. | Oasis Sakae Bldg. 4F, 1-9-29 Higashisakura, Higashi-ku, Nagoya | TEL 052-950-3075
Specializing in real estate brokerage, restaurant and beauty salon fixture transfers, and 'inuki' (furnished) property brokerage