15 Apr Franchise Rules of Thumb — R to Z
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 |
|---|---|---|
| Red Robin Gourmet Burgers | 32% | |
| Reniassance Executive Forums | 75% | |
| Rocky Mountain Chocolate | 65 to 70% | |
| Rita’s — Ices, Cones, Shakes | 80 to 130% | |
| Roly Poly Sandwiches | 34% | |
| Safe Ship | 40% | |
| Samurai Sam’s Teriyaki Grill | 50% | |
| Sarpino’s Pizza | 50% | |
| Sears Carpet & Upholstery Care | 30% | |
| ServiceMaster Clean | 55 to 60% | |
| Serv Pro | 90% | |
| Shell Rapid Lube (Business Opportunity) | 50% | |
| Signarama | 55 to 60% | |
| Sir Speedy (printing) | 55 to 60% | (1) |
| Smart Box | 48% | |
| Smoothie King | 40 to 45% | |
| Snap Fitness | 40% | |
| Soup Man (Original) | 30% | |
| Subway | 65 to 70% | (2) |
| SuperCoups | 40 to 45% | |
| Superior Inspection | 1.3 SDE | |
| Swisher (restroom hygiene service) | 75% | |
| Taco John’s | 31% | |
| Tan USA | 60 to 65% | |
| TCBY | 40 to 45% | |
| The Maids | 40 to 45% | |
| Togo’s Eatery | 60 to 65% | |
| Topz Healthy Burgers | 40% | |
| Tropical Smoothie Café | 55 to 60% | |
| Two Men and a Truck | 43% | |
| U Save (auto rental) | 10 to 15% | (3) |
| UPS Stores | 40 to 45% | |
| Valpak Mailers | 3 SDE | |
| Valvoline Instant Oil Change | 50% | |
| We the People | 86% | |
| Wild Birds Unlimited | 30 to 35% | |
| Wine Kitz (Canada) | 55% | |
| Wingstop Restaurants | 33% | |
| Wireless Toyz | 45 to 50% | |
| Worldwide Express | 50 to 55% | |
| Your Office USA | 60% | |
| You’ve Got Maids | 60% | |
| Ziebart International (auto services) | 42% | |
| Zoo Health Club | 20% |
NOTES:
(1) One sale was reported at 70% of sales.
(2) “As a former multi-unit Subway franchisee and a Development Agent, now a business broker Subway stores, there are many different formulas I have seen. 30 to 40 weeks sales, or 60 to 70% of sales is a popular one. Actual sales price depends on supply and demand and is closer to 70% of sales in So. CA.” “On stores with gross sales of $300,000 to $500,000, multiple of 40% of annual sales. On stores with sales of $500,000+, multiple of 50% of annual sales. Franchisor would like 30% as a down payment on resales.” “I would suggest for Subway, in New England and maybe all of New England, due to the high number of pizza restaurants, Subways tend to sell for a much lower of percentage of sales than 47% — sometimes as low as 20 – 25%.”
(3) Price does not include cost of vehicles, and revenues do not include auto sales.
