Pre-LOI · Multi-Unit Restaurants

Multi-Unit Restaurants LOI Negotiation: An Independent Sponsor's Counsel

Negotiating LOI Negotiation on multi-unit restaurants deals, with the structure protection and capital connectivity an independent sponsor actually needs.

EV range $8M to $80M EV EBITDA $2M to $14M Audience Buy-side / Sponsor
The deal context

LOI Negotiation 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.

The moves

How LOI Negotiation actually gets structured.

  1. Cap the exclusivity at 60 days, with one 30-day extension you control.

  2. Name the earnout, the rollover percentage, and the management fee in the LOI itself, not later.

  3. Reserve QofE and rep-and-warranty insurance as buyer expenses, paid at close.

  4. Build a no-shop carve-out for inbound strategic bids above a threshold.

  5. In multi-unit restaurants, layer in franchisor LOI letter requested before market as part of the LOI Negotiation workstream.

The common mistake

Letting the seller's counsel draft the first LOI. The frame of reference sets every fight that follows.

Jason's take
"An LOI is not a non-binding nicety. It is the deal, in skeleton."
Jason Powell · LOI Negotiation
Capital after close

The deal is one thing. The capital that opens up after close is another.

The capital that opens up post-close, from refinancing to growth equity to strategic exit, runs through a small set of Wall Street relationships. That network is built in.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
ENGAGE THE PRACTICE

LOI Negotiation 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.