Franchise Rules of Thumb — R to Z

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.

 
 
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