We Sell Restaurants
Formerly known as WSR (Water Smoke Restoration)
Bottom line
- Total investment $106K – $150K including a $50K franchise fee.
- Average unit revenue of $263K/year (median $136K).
- Rated STRONG with a risk score of 50/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- System growing at 68.8% CAGR over 3 years with 57 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one We Sell Restaurants unit return on the cash you put in?
Unlevered ROIC · per unit
24%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 We Sell Restaurants units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$421K
on $2.1M purchase
Total debt
$1.7M
SBA $1.1M + senior + seller note
Overview
About
Franchisees operate restaurant brokerage/consulting businesses, facilitating the buying, selling, or operational improvement of restaurant establishments. Day-to-day work involves client prospecting, market analysis, deal structuring, and broker commission management. Revenue derives from transaction commissions or advisory fees rather than direct food service operations.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Moderate-to-high risk franchise with aggressive growth, opaque profitability metrics, and substantial fixed royalty minimums that could strain undercapitalized franchisees.
Score breakdown · what drove the 50 / 100 rating
- 01MINORNo net income disclosure (Item 19) — unable to validate profitability claims against $263k avg revenue
- 02MINORHigh royalty floor ($0-$1,000/month minimum) creates fixed costs even during low-revenue periods
- 03MINORRapid unit growth (22.7% YoY) may indicate aggressive recruitment over proven unit economics
- 04MINORInvestment range requires $105k-$150k but average revenue only $263k — payback period unclear
- 05HIGHGoing Concern flag is FALSE but absence of clarity on franchisor financial stability is concerning
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
45 numbers
One-time purchase · CSV download · Validation questions included
FDD download
We Sell Restaurants · FDD (2025) PDF