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Jack Fry’s GM-turned-owner: ‘Tedious’ sale process was worth it

Jack Fry’s GM-turned-owner: ‘Tedious’ sale process was worth it

When Susan Seiler bought the struggling 53-year-old Jack Fry’s restaurant in 1986, she was a 32-year-old fine-dining veteran, but an unproven owner. In just a few years, Seiler turned Jack Fry’s into a Louisville, Ky., hot spot with cutting-edge cuisine served in a bustling bistro atmosphere. Twenty-one years later, Jack Fry’s was a nationally recognized, award-winning establishment.

Yet when Seiler turned 53, she knew it was time to sell. She had accomplished her goals and wanted to help someone else do the same. “That’s what people my age need to do, don’t you think?” she asked.

Last year Seiler approached general manager Stephanie Meeks, 43, about buying “my baby.” Meeks called the offer “a surprise and an honor,” and the two hammered out the details. The sale closed in February; terms were undisclosed.

How was the sale structured?

Seiler: I put up 20 percent, which the [Small Business Administration] considers a down payment toward the purchase. Though I hold that equity, I don’t consider myself an owner; I’m a lender at this point.

Meeks: I got the rest from the Small Business Administration and a local bank. SBA is guaranteeing 80 percent of the loan. Quadrant Financial helped coordinate the process.

Since this is your first restaurant purchase, was there any difficulty getting that loan?

Meeks: Getting it? No. Getting it done was another matter. It was paperwork, paperwork, paperwork dealing with three different agencies—SBA, the bank and Quadrant. Since this was the first time I’ve done this, I didn’t really know what to expect. It’s a tedious process, but I’m very grateful to everyone who enabled me to do it. It’s worth it.

Are there any partners outside the restaurant?

Seiler: No. I was the sole owner before, and Stephanie’s the sole owner now. I still own the building, but I’ve given her first option on purchasing the building down the road.

Would you like to buy the building?

Meeks: Yes, I want to own it in two to three years.

How did you ensure Jack Fry’s had operating capital after the transaction?

Seiler: We selected a cutoff date for the sale; I owned it through Feb. 24, and after that everything was Stephanie’s, including all the bills, the business’s cash, [food, fixtures and equipment], inventory, and some good will.

For 75 years, Jack Fry’s has been a single unit. Would you like to have another?

Meeks: I don’t know about that just yet. My plan from here is to figure out how to put a private dining room in a location that’s very old and already tight on space. Our dining room is a busy place, and we need quiet space for parties or meetings.

TAGS: Finance
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