Franchise Rules of Thumb — A to C

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.

 
 
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