FRANCHISE VALUATION METHODS: DETERMINING THE RIGHT PRICE

Franchise valuation methods are crucial for determining the appropriate price when buying or selling a franchise. These methods encompass various approaches, including income-based, market-based, and asset-based evaluations. Income-based methods assess the franchise's earning potential, considering factors like cash flow and profit projections. Market-based methods compare the franchise to similar businesses in the market to gauge its relative worth. Asset-based methods determine the franchise's value based on its tangible and intangible assets. Often, a combination of these approaches is used to arrive at a comprehensive valuation. Engaging professionals and understanding the franchisor's brand value and support systems are also crucial in determining the right price for the franchise, ensuring a fair and informed transaction.

https://www.franchise2sell.com.au/blogs/evaluation/franchise-valuation-methods-determining-the-right-price



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