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How to value my franchise business if I want to sell?

I don't own the brand, neither the "good will" of the business, but I own processes, customers and around a 1.1 million AUD in sales revenue. How much is my business worth?

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David C

I help you buy, sell, plan, value a business

Hi there. I work with people around the world to help them buy and sell businesses. I've been involved in the re-sale of dozens of franchises.

I would recommend you read my 2015 book Franchise Warnings. It contains a section on business valuation where I compare an independent business vs. a franchise. Available on Amazon or at www.FranchiseWarnings.com

My 2016 book; How To Sell My Own Business, also gives an insight on how small businesses are valued. I also have links to over 85 videos on buying and selling businesses at www.HowToSellMyOwnBusiness.com (book is also on Amazon.)

Should you want to discuss your particular case, simply arrange a call. If you want to move to an actual valuation, I'd be happy to help. There is more info at the above-mentioned website.

Cheers.
dave

Answered almost 8 years ago

Yishan Lin

Clarity Expert

Ask around for comparable valuations from people who have already sold their franchises before. I'm sure there are plenty of stories online.

Ultimately, valuations are derived from a combination of current cash flows, profits, and future projected cash flows.

The question of whether or not anyone will actually buy your franchise at THAT valuation is a different story - and depends on the market, industry, climate, city, along with your own urgency to sell, etc...

Answered almost 8 years ago