HYPOTHETICAL REFERENCE ONLY
Estimated annual EBITDA$168,000Operating earnings before interest, taxes, depreciation & amortization
Estimated monthly EBITDA$14,000
Annual ROI proxy*59.2%
EBITDA-based payback*1.7 years
For reference only. These calculations use hypothetical assumptions; they are not actual store results, forecasts, promises or guarantees of sales, profit or investment returns.
*EBITDA ÷ initial investment; payback = investment ÷ annual EBITDA. These operating indicators are not take-home income, investor distributions or a forecast of actual cash recovery.
See the calculation, assumptions and limitations
Product · variable 18% of sales$9,000
Andias · variable 8% of sales (6% + 2%)$4,000
Base fixed costs · excludes product & Andias fees$23,000
Additional staffing$0
Monthly EBITDA = sales − product − royalty − brand fund − base fixed operating costs − additional staffing. The initial $23,000 fixed-cost assumption calibrates the illustrative scenario to $14,000 of monthly EBITDA at $50,000 of monthly sales, after product costs and Andias fees. At $30,000 of monthly sales, this same model produces an $800 monthly operating loss. Fixed costs are not a verified average store cost or an itemized quotation. The Andias fee is always 8% of sales, is never included in fixed costs and is deducted only once.
Additional monthly staffing: $0 through $50,000 in sales; $1,000 above $50,000 through $55,000; $2,000 above $55,000 and below $60,000; $3,000 at $60,000 or more. A small sales increase at a threshold can reduce modeled earnings when staffing steps up. Real staffing needs may rise further with volume.
All results are illustrative estimates from selected inputs and management-provided cost assumptions, not audited historical franchise results or guaranteed earnings. Annual figures assume 12 identical months. Fixed costs and staffing are simplified; other costs may increase with sales. Confirm management coverage, benefits, payroll taxes, insurance, utilities, payment and delivery charges, local marketing and all project-specific costs before relying on a scenario.
EBITDA is not net profit or distributable cash. Interest, cash taxes, debt principal, capital expenditure, replacement equipment and working-capital changes are not modeled. Simple payback omits ramp-up, seasonality, the time value of money and future investment. Zero or negative EBITDA has no positive modeled payback. The model assumes an all-cash franchise investment; it is not an estimate of distributions to an Andias-managed partnership investor.
Actual results may differ materially. Any franchise financial performance representation must be evaluated against substantiated data and the applicable Franchise Disclosure Document, including Item 19.