How to Sell Your Food Truck: Business Transfer, Valuation and Steps

Selling Your Food Truck: A Decision That Deserves Careful Planning

Whether you are retiring, moving on to a new project, or simply ready for a change, selling a food truck is an operation that requires thorough preparation. Contrary to what many assume, selling your food truck is not just about finding a buyer for the vehicle. In most cases, you are transferring a business as a going concern — a combination of intangible assets (customer base, trading name, licences) and physical assets (vehicle, equipment) that form a viable operation.

Well prepared, a sale can generate significantly more than the scrap value of the equipment. Poorly handled, it can lead to disputes, tax reassessments, or a substantial loss of value.

Valuing Your Food Truck Business

The Components of Valuation

The sale price of a food truck is determined by combining several elements:

1. Vehicle and Equipment Value This is the simplest component to calculate. It depends on:

• Age and condition of the truck (mileage, bodywork, service history)
• On-board equipment (griddle, fryer, refrigeration units, POS system)
• Recent roadworthiness certificate and gas compliance certificate

A well-maintained food truck aged 3 to 5 years is typically worth between €15,000 and €45,000 depending on equipment level.

2. Business Goodwill This is often the most valuable component for a food truck with an established trade. It includes:

• Regular customers and local reputation
• Contracted pitches (recurring markets, corporate estates, loyal festival slots)
• Trading name and social media accounts
• Negotiated supplier contracts (pricing, lead times, terms)
• Commissary kitchen contract

Goodwill is typically valued using a multiple of annual revenue or EBITDA:

| Situation | Method | Indicative Ratio | |---|---|---| | Profitable truck with stable pitches | Revenue multiple | 20–50% of annual turnover | | Highly profitable, EBITDA > 15% | EBITDA multiple | 1.5–3× EBITDA | | Irregular or declining activity | Equipment value only | 0–10% of turnover |

Concrete example: a food truck turning over €80,000/year with EBITDA of €18,000 could be valued at €32,000–54,000 for goodwill, plus the vehicle value.

Common Valuation Mistakes

• Overvaluing customer loyalty: if regulars come for you personally rather than the brand, they may not transfer to a new owner
• Ignoring liabilities: supplier debts, overdue kitchen rental, unpaid social charges all reduce the net price
• Overlooking required repairs: a truck needing €5,000 of work will be negotiated down accordingly

Forms of Business Transfer

1. Full Business Transfer (Cession de Fonds de Commerce)

This is the most common form. You transfer the entire operation (truck + equipment + customers + contracts) to a buyer who continues trading. This works best when your food truck has genuine commercial value beyond the physical assets.

Legal requirements:

• Drafting a transfer deed (preferably by a lawyer or notary)
• Publication in a legal gazette
• Notification to the relevant authority if your parking authorisation is issued in your name
• Prior notification to employees if applicable (Loi Hamon)

2. Vehicle-Only Sale

If your business has limited commercial value (irregular customers, no regular pitches), you can simply sell the fitted vehicle. The transaction proceeds like a standard commercial vehicle sale, without the formalities of a full business transfer.

3. Contribution to a Company

If a partner wishes to take over the business within a new corporate structure, it is possible to contribute the business assets to a company. This is more complex but can offer tax advantages depending on your situation.

Finding a Buyer

Search Channels

• Leboncoin Pro and legal notice platforms: simplest for a standard transfer
• Specialist platforms: Transentreprise.com, Cession-PME.fr, fusacq.com
• Professional networks: restaurateur associations, food trucker Facebook groups, regional federations
• Word of mouth: often the most effective channel, particularly through your supplier and chef network

Preparing Your Sale File

A solid file reassures the buyer and justifies your price. It should include:

• Last 3 years of accounts (or tax returns for sole traders)
• Pitch summary: frequency, average revenue per pitch, copies of authorisations
• Full equipment inventory with photos and condition notes
• Vehicle service history
• Current contracts: commissary kitchen, suppliers, subscriptions
• 12 months of till receipts from SumUp or equivalent

With FoodTracks, you already have a structured history of your sales, costs, and margins — a strong foundation for building this file quickly.

Tax Aspects of the Sale

Capital Gains Tax

Any gain made on the sale is taxable. The applicable regime depends on your legal structure:

• Sole trader: the gain is included in business income (BIC) and subject to income tax
• EURL/SARL taxed at corporate rate: the gain is subject to corporation tax (15% up to €42,500, 25% above)

Possible exemptions (subject to conditions):

• If your annual turnover is below €250,000 (food service), you may qualify for full or partial exemption under Article 151 septies of the French Tax Code
• If you sell after 5 years of activity, significant allowances apply
• Retirement triggers a specific exemption subject to activity duration and timing conditions

Advice: consult an accountant before finalising the sale. Proper tax planning can represent several thousand euros of savings.

Transfer Duties

The buyer typically bears the registration duties calculated on the sale price of the business:

• 0% up to €23,000
• 3% from €23,000 to €200,000
• 5% above €200,000

These duties are payable to the tax authority within one month of signing the deed.

Securing the Transaction

Essential Precautions

• Have the transfer deed drafted professionally (lawyer or notary). A poorly drafted private deed can expose you to liability for years.
• Include a warranty against undisclosed liabilities: if hidden debts surface after the sale, the buyer may seek recourse. Define this warranty clearly and limit its duration contractually.
• Escrow part of the price with a trusted third party (notary or lawyer) during the legal creditors' opposition period (10 days after publication).
• Verify that your authorisations are transferable: some municipal parking authorisations are personal and do not transfer automatically. The buyer must apply in their own name.

Conclusion

Selling your food truck can be highly rewarding if you prepare properly. The key is to document your operation thoroughly beforehand — sales figures, pitches, contracts, vehicle maintenance — to justify a fair price and reassure the buyer. Plan the tax side with your accountant, use a professional for the transfer deed, and invest time in your sale file. A successful handover means a satisfied buyer who carries your work forward — and a seller who moves on with confidence.