This restaurant feasibility study was prepared in compliance with SBA CFR-2011-Title13 §120.160 and is deemed acceptable for a Federally Related Transaction.
"HTeaO" Feasibility Study Completed
Watch: a short overview — "HTeaO" Feasibility Study Completed
The team at Wert-Berater, Inc. recently completed an SBA Compliant Feasibility Study for the proposed new leasehold construction of a HTea0 franchised quick-service franchised restaurant located at 9161 West Glendale Avenue, Glendale, Arizona 85305. The restaurant is to be developed on a ready pad within a high-traffic commercial area at the southwest corner of West Glendale Avenue and North 91st Avenue. HTeaO Quick Service Restaurant Feasibility Study Demographic estimates provided by ESRI indicate that the Target Market is sufficient to sustain the proposed project, with the projected market share within the CMA estimated at approximately 5.3%. A complete Market Analysis included: Detailed market analysis covering target demographics, market demand, competition, and potential market share. This section demonstrates the business's ability to capture and sustain a customer base. The total project cost is $2,990,000, for the 2,203-square-foot structure, equipment, soft costs, and financing expenses. Pro forma and financial feasibility analysis included: Financial Feasibility: Comprehensive financial analysis, including: Pro Forma Financial Statements: Projected income statements, balance sheets, and cash flow statements over a specified period (often 10 years). Discounted Cash Flow Analysis (DCF): Evaluation of the present value of future cash flows to assess the project's profitability. Financial Ratios and Sustainability Analysis: Examination of key financial ratios to determine the financial health and sustainability of the business. Working Capital and Liquidity Analysis: Assessment of the business's ability to meet short-term obligations and maintain sufficient cash flow. Financial Feasibility Table of Contents: Pro forma (10 years)
Discounted Cash Flow Analysis (DCF)
Structure of the Assets and Liabilities
Net Assets (Net Worth)
Financial Sustainability Analysis
Key ratios of the company's financial sustainability
Working capital analysis
Liquidity Analysis Financial Performance
Overview of the Financial Results
Profitability Ratios
Analysis of the Business Activity (Turnover Ratios)
Labor productivity
Key Ratios Summary
Rating of the Financial Position and Financial Performance
Bankruptcy Test
Calculation of the Final Rating of the Financial Condition
This restaurant feasibility study was prepared in compliance with SBA CFR-2011-Title13 §120.160 and is deemed acceptable for a Federally Related Transaction.
SBA CFR-2011-Title 13 §120.160 outlines the requirements for Small Business Administration (SBA) loan eligibility, specifically focusing on loan purposes, creditworthiness, and feasibility.
The regulation requires that:
Use of Proceeds: Loan funds must be used for sound business purposes, including purchasing land, buildings, equipment, and working capital.
Funds may also be used to refinance existing business debt under certain conditions.
Creditworthiness: The applicant must demonstrate the ability to repay the loan from the business’s earnings.
A satisfactory credit history, strong financial statements, and sufficient collateral are essential.
Feasibility: A thorough feasibility study must show that the business project is viable and sustainable.
The study should include market analysis, revenue projections, and an assessment of competitive conditions.
Equity Injection: The borrower is required to invest their own equity to reduce risk and demonstrate commitment to the project.
Collateral: Adequate collateral must be pledged, though SBA loans are primarily cash-flow-based.
Debt Service Coverage Ratio (DSCR): The projected DSCR should meet SBA's minimum requirements, typically around 1.15x or higher, to ensure the business can cover debt obligations.
The feasibility study must align with these criteria to be considered acceptable for an SBA-backed.
The Team at Wert-Berater, Inc. has over 25-years of experience providing SBA Compliant Feasibility Studies.
President, Wert-Berater, Inc. — independent feasibility study consultants since 1998. 4,000+ engagements completed across all 50 states and internationally, evaluating $41.2 billion in project value for SBA, USDA, EB-5, conventional, and institutional financing decisions. Fiduciary duty runs to the lender and agency in every engagement.
+1 310-857-2443 ext. 800 · email · 1968 South Coast Hwy, Ste 2382, Laguna Beach, CA 92651 · 111 Town Square Pl Ste 1238 PMB 657834, Jersey City, NJ 07310 · 539 W. Commerce St #8486, Dallas, TX 75208 · 66 W Flagler Street, Suite 900, PMB 12704, Miami, FL 33130
Independent feasibility studies since 1998 — 4,000+ engagements, $41.2 billion in evaluated project value. Standard delivery in 10 to 15 business days. Fiduciary duty to the lender and agency.
Wert-Berater, Inc. · 1968 South Coast Hwy, Ste 2382, Laguna Beach, CA 92651 · 111 Town Square Pl Ste 1238 PMB 657834, Jersey City, NJ 07310 · 539 W. Commerce St #8486, Dallas, TX 75208 · 66 W Flagler Street, Suite 900, PMB 12704, Miami, FL 33130 · +1 310-857-2443 ext. 800 · email · Blog Index · Privacy · Terms · Site Map
Legal disclosure. Wert-Berater, Inc. offices are mailing addresses only. Following the COVID-19 pandemic the firm has elected to work remotely; its office locations receive mail and are not staffed for visitors or in-person meetings. Headquarters mailing address: 1968 South Coast Hwy, Ste 2382, Laguna Beach, CA 92651.
Wert-Berater, Inc. is an independent provider of feasibility studies and other related services. The firm does not provide financing or equity investment advice, and does not arrange, broker, or place debt or equity capital of any kind.
All appraisal assignments are performed by Bruce E. Jones, MAI, ASA-GC, BCA, CMEA, a member of the Appraisal Institute since 2006, a staff member of Wert-Berater, Inc. and owner of Special Purpose Realty Valuation.
