02 Oct Franchise List (A to C)
From the upcoming 2013 Business Reference Guide, we have listed franchises with a “quick” rule of thumb, or range, usually expressed as a percentage of sales. For many of them we have based it on quite a few actual sales; others may have been based on just a few; and, in some cases, just one where we felt it was appropriate. They can be a good starting point for pricing the business.
Many of the franchises are well known while others are very new with just several units. By the time this goes to press, some of the franchises may have folded, sold or merged. We try to keep this as up-to-date as possible. We could use your help. To contribute to our ever-growing list, just complete the franchise resale form on our web site. Please also email tom@bbpinc.com if you find that a franchise has disappeared or merged, etc. Obviously the big changes such as Mail Boxes to UPS Store will be caught by us or by our researchers (hopefully).
Keep in mind that rules of thumb are just that. Every business is different and rules of thumb will never take the place of a business valuation or even an opinion of value. Rules of thumb are also not intended to create a specific value or to be used for an appraisal. But, they will give you a quick ballpark idea of what the business might sell for with everything else being equal. A rule of thumb will tell you whether a seller is in the ballpark when he or she tells you what they think their business is worth or what they want to sell it for.
For up-to-date information and for those companies where the number of units is not shown, track down their web site. Read the footnotes where indicated.
A number in parentheses beside a franchise indicates a note at the end of the list.
Ace Cash Express 1.25
Ace Hardware stores (1) 45%
Adam and Eve 35%
Andy on Call 25%
Aero Colours 70%
All Tune & Lube 20 – 25%
AlphaGraphics 60 – 65%
Allegra Printing 60 – 65%
American Poolplayers Association (APA) (2) 140%
Andy OnCall 25%
Arctic Circle 40%
Atlanta Bread Company 25 – 30%
Baskin-Robbins Ice Cream 45 — 50%
Batteries Plus 30 – 35%
Beef O’Brady’s 22%
Ben & Jerry’s 35 – 40%
Between Rounds Bagel Deli & Bakery (3) 40 – 45%
Big Apple Bagels 35 – 40%
Big City Burrito 55 – 60%
Big O Tires 35%
Black Jack Pizza 45 — 50%
Blimpies 45 — 50%
Boba Loca 30%
Bresler’s Ice Cream 35 – 40%
Bruster’s Ice Cream 50%
Budget Blinds (4) 45 – 50%
Burger King 40%
Camille’s Sidewalk Café 30 – 35%
Carl’s Jr 40 – 50%
Cartridge World 30 — 35%
Carvel Ice Cream/Restaurants 55%
Car X Auto Service 35 – 40%
CertaPro Painters 45%
Chester’s International 45%
Cheeburger Cheeburger 35 — 40%
Chick-Fil-A 60 – 70%
Closets by Design 50%
Closet Factory 50%
Cold Stone Creamery 30%
Conroy’s Flowers 55 – 60%
Cost Cutter’s Family Hair 55 – 60%
Coverall Cleaning Systems (5) 2–3 times mo. sales
Culligan Dealerships 80 – 120%
Curves for Women (6) 35 — 40%
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(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 Woman 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.
