What’s my franchise worth?
A franchise resale is typically valued as a multiple of adjusted annual earnings plus the value of tangible assets (fit-out, equipment, stock). The multiple depends on the category, the strength of the lease, and how much the business relies on the current owner.
The three inputs
- Adjusted earnings — profit with owner add-backs applied, showing true owner benefit.
- Tangible assets — fit-out, equipment and stock at fair value.
- Goodwill — the premium for trading history and customer base, above the tangibles.
Valuation questions
How is a franchise business valued?
Most franchise resales are valued on a multiple of adjusted annual earnings (add-backs applied to owner benefit), plus the value of tangible assets like fit-out and equipment. The multiple varies by category, lease strength and how much the business depends on the current owner.
What is goodwill in a franchise sale?
Goodwill is the part of the price above the tangible assets — it reflects established trading history, customer base and brand. Always separate goodwill from equipment value, and only pay for goodwill you can verify in the financials.
Does my remaining lease affect the price?
Significantly. A long remaining lease with options is an asset; a short lease is a risk a buyer will discount for. Renewal terms and rent reviews all feed into the valuation.
General information, not financial advice. Have an accountant value your specific business before you list. Ready to sell? Create a listing for $199.