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Scottish Inns — Financial Models

Lodging & Hospitality · Investment: — · Avg revenue: —

Blue values = direct from FDD (Item 7 investment, Item 19 revenue)Gray values = category-benchmarked estimate — override any field

What one unit earns on your invested capital

Model A · Single-Unit Return

Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC — below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.

Note: Item 19 revenue is what the franchisor discloses — it's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.

Returns model · single-unit ROIC

What would one Scottish Inns unit return on the cash you put in?

Category estimateYou overrode an FDD value

Revenue · per unit, per yearest.

Item 19 not disclosed — enter your estimate

Franchisor take · royalty + ad fundest.

Royaltyest.typ 6–8%

Ad fundest.typ 3–5%

Operating costs · hospitality category estimateest.

COGSest.

Laborest.

Rent / occupancyest.

Other operatingest.

Total invested capital · what you put in to openest.

Initial investmentest.

FDD range not available — using estimate

Working capitalest.

Item 7 didn't break this out — estimated at ~10% of annual revenue

Unlevered ROIC · per unit

25%

Below the 30–60% attractive-franchise band

0%30–60% attractive band80%

Store EBITDA · annual

$83K

EBITDA margin

11.0%

Total invested

$325K

Payback

47 mo

Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

Scottish Inns did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue — without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.