Summary
A respected A&W operator with three successful locations and a fourth underway needed a financial partner who could see past a misleading income statement. DBLS secured a 75% LTV facility to refinance existing debt, fund a mandatory store reimage, and provide the down payment for his newest location.
The Challenge
On paper, his recent financials showed a dip in profitability, but the numbers were not telling the real story. Corporate-mandated initiatives and shared overhead costs had artificially suppressed his results. A traditional automated lending model would have stopped right there and declined the deal.
The Solution
We dug into the operations and rebuilt the financial narrative. By properly allocating shared costs and adjusting for one-time franchise expenses, we revealed the true profitability of a highly profitable, well-run operation and presented a strong debt-service coverage ratio to the lender.
The Results
Full 75% LTV facility approved. He secured the equity injection needed to finalize his newest location and funding to reimage an existing store. Most importantly, he moved to a lending partner that actually understands how multi-unit franchise businesses work.