Franchise Value: Valuation Methods and Benchmarking Data

April 2016 PDF (107 pages)

BVR (editor)

Business Valuation Resources, LLC

“No valuation should ever be a mechanical exercise, and the valuation of franchises is no exception.”

With over 10% of all businesses in the U.S. being franchises, and more in some industries, the likelihood of running across a franchise valuation in your practice is substantial. This new special report, "Franchise Value: Valuation Methods and Benchmarking Data," tackles the myriad of valuation challenges and presents a vast amount of valuable franchise benchmarking data, broken down by major industry. Successfully navigate your next franchise valuation with important lessons from the courts and tips on how to overcome the most common franchise valuation issues.

This publication and many more are also available for download with a subscription to the Digital Library or BVResearch Pro.
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Categories: industry analysis


Highlights of the special report include:

  • Overcome the unique challenges of valuing franchises - Understand the many considerations to factor in when valuing a franchise including the type of agreement, company operating protocol, and value of the brand

  • Be confident in your valuation conclusion with real-world, current data at your fingertips - Access aggregated benchmarking data from the Pratt's Stats database to see where your subject company falls compared to other franchised companies. This report provides data on 734 analyzed companies, broken down by seven industries, including:
    • Agriculture,  Forestry and Fishing
    • Finance, Insurance and Real Estate
    • Wholesale Trade
    • Transportation, Communication, Electric Gas, and Sanitary
    • Construction
    • Services
    • Retail Trade 
  • Cut your research time - Quickly understand the top value drivers for franchised businesses, including limits on expansion, key-customer risk, deferred maintenance, and the royalties the franchise pays to the franchisor - which are often more important than industry-specific considerations

Table of Contents

 

  • Introduction
  • Chapter 1:  Defining Franchises
  • Chapter 2.  Franchise Value Drivers
  • Chapter 3. Putting It All Together—The Valuation
  • Chapter 4.  Using Pratt’s Stats Data to Support Franchise Valuations
  • Chapter 5.  Pricing a Franchise:  Rules of Thumb