Quick Service Restaurant Feasibility Study in the Nashville-Davidson--Murfreesboro--Franklin, TN Metro Area

A small file with a strong franchise tilt

In the Nashville area, 54.3% of limited-service restaurant loans carry a franchise flag, and a location quotient of 1.36x shows counter-service concepts weighing more locally than nationally. The file is modest in size: 129 loans, $59.6 million gross, over FY2017 to FY2026. Out of 779 areas this one is 35th for the class, and within it limited-service restaurants are the top class of 39. The $350,000 median is 1.13x the national level, and the middle loans run from $105,000 to $655,900.

Davidson County holds 61 of the loans, Williamson County 35, Rutherford County 10, and Maury and Wilson counties 7 each. Both program counts, 7(a) and 504, are held back by Loan Analytics for Nashville, which leaves the program mix unstated on this page.

Four holders on the list

Only four holders reach SBA's listing threshold. The Huntington National Bank has 30 loans and $10.1 million; Fifth Third Bank has 7 worth $6.2 million; U.S. Bank, National Association has 6 worth only $169,100; and Stearns Bank National Association has 5 worth $1.4 million. The table is silent on how any of them would treat a new request.

Cancellations account for 15.2% or more of what was approved in FY2017 through FY2024. Two more values are withheld by Loan Analytics, the ceiling on cancellation and a loss rate so far; each is blank rather than zero. By year, approvals began at 5 in FY2017, jumped to 18 in FY2021, and hit 24 in FY2026, worth $12.6 million.

Nashville counter-service: study questions

With most borrowers inside a brand, the study checks the franchisor's expected sales and cost structure against the specific site, not against the brand's average. The study should count the competing drive-throughs near the site and watch their lines at the hours that matter. Cost covers the franchisor's required build, equipment and opening package. Debt service coverage should carry royalty and advertising fees and a cautious ramp. The appraisal of a freestanding pad depends on lease terms and on how readily the building suits other tenants. Because a loan enters the count only when its project county is on the July 2023 list, the totals here are minimums. Weigh also that 129 loans over ten years is a thin base, so single years move a lot.