Insights / Sample output
Consolidated multi-unit package
Per-unit profit and loss, intercompany eliminations, and the group consolidation — the reporting that tells a multi-unit operator which locations are funding which.
Exhibit A
Unit contribution summary
Four-wall contribution before group overhead, ranked. This is the page most operators have never seen.
| Unit | Net sales | Prime % | Occupancy % | Four-wall | Four-wall % | vs median |
|---|---|---|---|---|---|---|
| Downtown | 2,410,000 | 62.1% | 7.2% | 392,000 | 16.3% | +4.2 pts |
| Harbor | 1,980,000 | 64.8% | 8.1% | 271,000 | 13.7% | +1.6 pts |
| Midtown | 2,120,000 | 66.0% | 9.4% | 248,000 | 11.7% | median |
| Riverside | 1,640,000 | 70.4% | 11.8% | 96,000 | 5.9% | −5.8 pts |
| Group total | 8,150,000 | 65.6% | 8.9% | 1,007,000 | 12.4% | — |
What this exposes
Riverside generates 20% of group sales and 9.5% of group contribution. Its prime cost runs 8.3 points above Downtown's, and its occupancy cost is 4.6 points higher — two different problems requiring two different responses. On a consolidated-only P&L, the group's healthy 12.4% average conceals both entirely.
Exhibit B
Consolidation and eliminations
Separate entities per location, consolidated with intercompany eliminations and shared-service allocation shown explicitly rather than buried.
| Line | Units combined | ManageCo | Eliminations | Consolidated |
|---|---|---|---|---|
| Net sales | 8,150,000 | 489,000 | (489,000) | 8,150,000 |
| Cost of sales | 2,616,150 | — | — | 2,616,150 |
| Labour | 2,728,200 | 312,000 | — | 3,040,200 |
| Management fee to ManageCo | 489,000 | — | (489,000) | — |
| Occupancy | 725,350 | 42,000 | — | 767,350 |
| Other operating | 584,300 | 98,000 | — | 682,300 |
| EBITDA | 1,007,000 | 37,000 | — | 1,044,000 |
The management fee appears as an expense at unit level and revenue at ManageCo, then eliminates on consolidation. Shown this way, unit managers are still measured on a fee they pay, and ownership still sees a clean group number.
Exhibit C
Franchise accruals
Reconciled against the franchise agreement each period rather than estimated and trued up at year end.
| Obligation | Rate | Basis | Accrued | Paid | Balance |
|---|---|---|---|---|---|
| Royalty | 5.0% | 8,150,000 | 407,500 | 407,500 | — |
| National advertising fund | 2.0% | 8,150,000 | 163,000 | 163,000 | — |
| Local marketing minimum | 1.0% | 8,150,000 | 81,500 | 64,200 | 17,300 short |
| Technology fee | per unit | 4 units | 28,800 | 28,800 | — |
The local marketing shortfall is a contractual obligation, not a saving. Caught in period, it is a spending decision; caught at audit, it is a liability with a franchisor conversation attached.