12 Apr Franchise Rules of Thumb — A to C
See blog entry on 4/11/2011 for more info on Franchise Rules of Thumb plus instructions on how you can contribute franchise sales information.
| Name of Franchise | Selling Price as a % of Sales or SDE Multiple | See Notes Below |
|---|---|---|
| AAMCO Transmission | 40 to 50% | |
| A & W Restaurants | 40 to 50% | |
| Ace Cash Express | 1.25 SDE | |
| Ace Hardware stores | 45% | (1) |
| Adam and Eve | 40% | |
| Andy on Call | 25% | |
| Aero Colours | 75% | |
| All tune & Lube | 20 to 25% | |
| AlphaGraphics | 60 to 65% | |
| Allegra Printing | 70% | |
| American Poolplayers Association (APA) | 1.4 SDE | (2) |
| Arctic Circle | 50% | |
| Atlanta Bread Company | 25 to 30% | |
| Baskin-Robbins Ice Cream | 46 to 56% | |
| Batteries Plus | 30 to 35% | |
| Beef O’Brady’s | 22% | |
| Ben & Jerry’s | 35 to 40% | |
| Between Rounds Bagel Deli & Bakery | (3) | |
| Big Apple Bagel | 42% | |
| Big City Burrito | 55 to 60% | |
| Big O Tires | 35% | |
| Black Jack Pizza | 55 to 60% | |
| Blimpies | 50% | |
| Boba Loca | 30% | |
| Bresler’s Ice Cream | 35 to 40% | |
| Bruster’s Ice Cream | 50% | |
| Budget Blinds | 45 to 50% | (4) |
| Burger King | 40% | |
| Camille’s Sidewalk Café | 30 to 35% | |
| Carl’s Jr | 40 to 50% | |
| Cartridge World | 30 to 35% | |
| Carvel Ice Cream/Restaurants | 60% | |
| Car X Auto Service | 35 to 40% | |
| CertaPro Painters | 45% | |
| Chester’s International | 45% | |
| Cheeburger Cheeburger | 35 to 40% | |
| Chick-Fil-A | 60 to 70% | |
| Closets by Design | 50% | |
| Closet Factory | 62% | |
| Cold Stone Creamery | 30 to 35% | |
| Conroy’s Flowers | 55 to 60% | |
| Cost Cutter’s Family Hair | 57% | |
| Coverall North America | 2 to 3 times mo. sales | (5) |
| Culligan Dealerships | 80 to 120% | |
| Curves for Women | 2.0 SDE | (6) |
NOTES:
(1) Sales seem to indicate that smaller sales bring a higher multiple (50% +) than stores with sales over a million, which seem to bring lower multiples. Price is plus inventory which may be the cause of lower multiples for larger stores.
(2) $1,000 to $1,800 per team in sales; selling price – $2,000 to $2,500 per team
(3) 3 – 4 times earnings
(4) 2 times annual EBIT, plus inventory & equipment
(5) Master/Area developer – Sell for 3 to 5 times earnings plus some blue sky for size and potential of market (some cases).
(6) Prices for Curves for Women seem to be all over the place. Some sales have been reported at 75+% of sales. One sale reported was 1.31 times sales for four units.
