šŸ“Š Case Study: The Royalty Black Hole

~ Certified Business Appraiser

šŸ• A franchise showed $180K in free cash flow.

But the financials didnā€™t include:

  • 8% royalty
  • 3% marketing fee

Real FCF? ~$100K
Buyer was overpayingā€”lender got nervousā€”deal barely closed.

Donā€™t let brand strength blind you to contract risk.