A seller priced 3 fast food units at $1.8M based on $425K in “cash flow.”

But:

❌ One unit had no manager—owner floated between stores
❌ $75K in addbacks = car allowance, meals, and “admin” payroll
❌ Franchise + ad fees totaled 12%
❌ One lease was below-market + set to expire

📉 Adjusted FCF: ~$185K
🍟 Real value closer to ~$1.2M

📌 Scale without staffing is a liability, not leverage.