The BizBuySell Small Business Community

  • Get Expert Advice

  •  • Find Local Service Professionals

  •  • Share Your Experiences

what is the multiplier for franchise restuarants?

people often mention that 2-3 multiplier (times net cash flow) is adequate for resuarants. Is it also true for franchise restuarants (such as KFC, pizza hut, taco bell, etc.)? I know multiplier is just one of the valuation methods. But speaking of multiplier approach, is my statement valid?

No User Photo

Answer This Question

max 5000 characters

Web Reference (optional)

e.g., "www.mywebsite.com"

Review Community Guidelines

Help keep our Community clean and on topic. The BizBuySell Community is a place where you can discuss your questions, concerns and knowledge with others you can trust. It is not OK to use this forum to solicit others for personal or financial gain, or to rant about personal issues. It's all in the guidelines.

Submit Your Answer
Answers (3)
No User Photo

Hello!

Have you ever searched for funds, loans, financial assistance or need an accredited lender to help you meet up with your needs and demands? Do you want an Investment Loan for your business Or have your bank turned you down? Is your monthly income disappearing due to high interest rate on your Loans, Credit or Bonds? Then you have no alternative than to get an instant and reliable service. Contact us today for Legit/accredited Loans, Mortgages and Investment funds. For Quick application, Apply within; Full Name: Loan Amount needed: Loan Purpose: Loan Duration: Phone number: Address/Country:

Yours Sincerely
Jesse Peterson
phone: (980) 239-7539
email: info@interventionmortgagefirm.com
web: http://www.interventionmortgagefirm.com/

May 31, 2017
Salvatore B. Urso
Florida Business Acquisitions, Co.
FL

Daniel,

One thing to consider is how much time commitment is required of the new owner. For instance, consider a biz w/ earning $60k and the owner works 50 hrs/week vs. one where the owner works 5 hrs per week and earns $60k. It seems logical that the former should sell for a higher multiple. When we value a business we look at cap rate vs. owner involvement. If you have more questions feel free to call me. I'll help you sort this out. No charge. 813.421-5001.

Best of luck!

Sep 5, 2009
Chuck Woolweaver
Amerivest Group
Business Broker/ Franchising Specialist
Palm Beach County, FL

Yes, the multiplier doesn't change because it's a franchise. Here in Florida, the multiplier for QSR's is 2-3

Sep 3, 2009

Start a Discussion