Quick Service Restaurant Feasibility Study in the Durham-Chapel Hill, NC Metro Area

Durham-Chapel Hill limited-service restaurants are franchise-led, at 64.1% of loans, and larger than the class norm: the $486,500 median is 1.56x the national figure and the central loans run from $356,500 to $890,000. The 39 approvals between FY2017 and FY2026 total $28.3 million. The class holds 2 of 39 places locally, the area ranks 89 among 779 and the location quotient of 1.51x is above parity.

Durham County first

Durham County, NC supplies 24 loans, Orange County, NC 8 and Chatham County, NC 7, so Durham County by itself carries the majority of the 39 loans, and the three counties together account for all 39. The Fidelity Bank shows 5 loans and $4.7 million, a large average beside the median. Which of 7(a) and 504 carried the loans is not shown,.

Years, floors and what is withheld

FY2019 shows 6 loans and $2.6 million, FY2021 6 loans and $7.7 million and FY2024 6 loans and $7.2 million. Every other year is hidden, which leaves only three of the ten years open to comparison, and these three show the same count of 6 loans with very different dollars, from $2.6 million to $7.7 million. Loss measures, cancellation and charge-off, are also withheld, which leaves this page without a loss floor, and withheld values are not zeros.

Franchise terms and the site test

With a franchise share of 64.1%, a study ought to begin from the franchise agreement itself: territory, development schedule, build-out standards and fees. The site test is traffic, drive-thru capacity, visibility and the density of competing units. Cost belongs beside the $486,500 median, and the top of the central range is a reminder that new construction on a pad site is a different risk from a leasehold conversion. Labor in a competitive market is a real line in the cash model. Test the loan payment against a slow opening. Land, building, equipment and brand rights each need their own appraised value. County placement uses the July 2023 delineation, and the single bank line reflects only what SBA records as held. A franchise share this high also means the study should compare the sponsor's projections with the brand's published unit economics, then explain any gap with local evidence rather than optimism.