Multi-Unit Restaurants Deals: Independent Sponsor Economics Done Right
Independent sponsor counsel for multi-unit restaurants, focused on Independent Sponsor Economics and the deal mechanics that protect sponsor economics and LP alignment.
Independent Sponsor Economics on multi-unit restaurants deals is one of those workstreams that looks routine on a checklist and decides outcomes in practice.
The typical multi-unit restaurants platform sits at $8M to $80M EV with EBITDA in the $2M to $14M range. The thesis runs on franchisee roll-up or regional concept acquisition. The franchisor consent letter is the deal. Get it lined up before you spend money on diligence.
How Independent Sponsor Economics actually gets structured.
Anchor on 20 to 25 percent carry above an 8 percent preferred return, with a 50/50 catch-up.
Set the management fee at 2 percent of invested capital, capped at three years.
Charge a transaction fee of 2 to 3 percent at close, with a clear LP-approval ceiling.
Document the waterfall in the LPA, not in a side letter.
In multi-unit restaurants, layer in franchisor LOI letter requested before market as part of the Independent Sponsor Economics workstream.
Negotiating economics with the LP only after the LOI is signed. By then, the leverage is gone.
"If you are an independent sponsor, your economics are your firm. Defend them in the LPA, not in conversation."Jason Powell · Independent Sponsor Economics
The deal is one thing. The capital that opens up after close is another.
Refinancing, recaps, growth rounds, and the right strategic conversation eighteen months early are all downstream of relationships that take years to build and minutes to use.
Related deal pages.
LOI Negotiation for Multi-Unit Restaurants
The 4 to 8 page agreement that frames the deal economics, exclusivity, and diligence period.
Management Fee Structuring for Multi-Unit Restaurants
The annual fee paid by the deal entity to the independent sponsor for ongoing oversight, board service, and p…
Equity Rollover for Multi-Unit Restaurants
The portion of seller proceeds reinvested into the post-close entity, aligning seller with buyer.
Earnout Structures for Multi-Unit Restaurants
Deferred purchase price contingent on post-close performance, used to bridge buyer-seller valuation gaps.
Independent Sponsor Economics for Healthcare Services
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Independent Sponsor Economics for Home Services
regional roll-ups of HVAC, plumbing, and electrical operators
Independent Sponsor Economics for Multi-Unit Restaurants, on independent sponsor terms.
Independent sponsor counsel that already speaks fluent deal-by-deal economics, structures clean LPAs, and travels with capital markets relationships for what comes after close.