F&B (Food & Beverages), Financial Model, Hospitality, Restaurant Business, Service Businesses

Business Valuation, Cash Flow Projections, Debt Service Coverage, Financial Model, Franchise Model, Loans, Mergers and Acquisitions Model, Pro-Forma

Underwrite a multi-unit quick-service-restaurant (QSR) franchise resale the way an SBA lender will, not the way a broker sells it. Most franchise templates are operating or startup forecasts. This is an acquisition model built around the real value drivers of a multi-unit QSR resale: FDD Item 19 unit economics, the royalty stack the seller nets out of the headline, and the two costs a broker store-level sheet quietly treats as free.

The engine builds earnings bottom-up: units times AUV equals system sales, then the royalty stack (royalty plus brand/ad fund plus tech fee, about 8 to 13 percent of gross sales) comes off the top before the operator earns a cent, and the store P and L (food, labour, occupancy, other) lands the store-level EBITDA. Then it makes the adjustments most buyers miss: it hires a district manager to replace the seller above-store supervision, and funds a contractual remodel / reimage reserve the franchise agreement will force. It prices the deal on Adjusted EBITDA (after a real manager), never the inflated store-level number, and shows the broker-basis price beside it so you can see the overpay you avoid.

The headline is the one number that decides financing: the TRUE DSCR (about 1.33x in the base case), computed on cash flow after the above-store G and A, a district manager and the remodel reserve, printed right next to the flattering NAIVE DSCR (about 2.16x) a broker store-level sheet implies. The gap is exactly what a lender strips before deciding. And because the royalty is charged on gross sales while occupancy and management are fixed, a normal same-store-sales decline compresses the profit more than proportionally: the model stresses it in an honest down-case DSCR of about 0.85x, below the 1.25x floor. The surprising reveal on the way through: the franchisor fees equal about 66 percent of the store-level EBITDA.

What is inside: a 10-sheet Excel workbook (Google-Sheets compatible, no macros, no add-ins, no external links); a 20-plus page PDF user guide with a quick start, a sheet-by-sheet walkthrough, how the royalty-stack and FDD Item 19 engine works, the three honesty adjustments, the SBA 7(a) franchise financing (SBA Franchise Directory, 80/10/10, the seller-note standby lever), and a franchise-resale due-diligence checklist; a Unit Economics and Royalty Engine sheet; SDE and Valuation with the district-manager add-back and the broker-basis overpay memo; Sources and Uses with a real-estate option block; a DSCR and Debt tab with the true-vs-naive DSCR, coverage-before-remodel, the same-store-sales down-case and a real SBA amortisation schedule; Returns and Exit (cash-on-cash, 5-year equity multiple, an honest note on why there is no IRR); a Dashboard with a DSCR sensitivity grid; and a Benchmarks and Sources tab. A 3-way concept toggle (Burger and Sandwich QSR / Coffee and Beverage / Pizza and Delivery) re-prices the whole deal.

Machine-verified: 64 automated checks across three independent calculation engines, zero errors. Educational planning tool, not financial, investment, tax, lending or legal advice. FDD Item 19 figures are averages that exclude underperformers; confirm the FDD, the franchise agreement remaining term and transfer terms, the leases, the seller tax returns and your SBA term sheet before relying on any number.

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