BreakThru Realty

How Franchise Resales Are Valued

A franchise unit is valued on seller's discretionary earnings after royalties and brand fees, which is why two units with the same sales under different brands are worth different amounts. The remaining term, the transfer conditions and any remodel coming due move the price.

Storefronts and parked cars along a small town main street at sunset

Reviewed by Tyson E. Sam, Founder and Broker of Record, BreakThru Realty, Florida License 3565210

Last reviewed November 7, 2026

Find Out What My Business Is Worth · (786) 914-1017

Earnings After Royalties

The base is seller's discretionary earnings after the royalty and the brand fund contribution, and buyers compare the unit with the brand's own published unit economics where the franchisor discloses them. A unit performing above the system average is valued toward the top of its range; one below it is valued as a turnaround.

Term, Transfer and the Franchisor

The remaining term and renewal rights have to outlast a buyer's loan, and the transfer clause sets the approval, the fee and any right of first refusal. A franchisor that approves transfers quickly and supports buyers widens the pool; one that requires a new agreement at higher royalties or a remodel at transfer lowers the price the buyer can pay.

The Lease, the Remodel and the Buyers

Franchise units usually sit in leased space, sometimes with the franchisor holding the lease, so the assignment involves three parties. A remodel or equipment upgrade due at transfer is priced in. Existing operators in the system, first time owners the franchisor approves and multiunit groups each value the unit differently.

Find Out What My Business Is Worth

Tell us the type of business, the city, how long it has operated, annual revenue, owner benefit or seller's discretionary earnings, EBITDA if you track it, monthly rent and lease expiry, number of employees, how involved you are, why you are selling, your timeline and whether you would consider seller financing. A licensed BreakThru business broker prepares a confidential valuation from comparable sales and replies within one business day. Everything you tell us is confidential, the valuation is free, and nothing is listed or announced unless you decide to sell. Prefer to talk now? Call (786) 914-1017.

Questions Owners Ask

How much is my business worth?
Most owner operated businesses in Florida sell for a multiple of seller's discretionary earnings: net profit plus the owner's salary, benefits and one time or personal expenses run through the business. Where the multiple falls depends on the industry, the lease, the staff, the trend in the numbers and how much the business depends on you. A confidential valuation gives you the range for your business and the reasons behind it.
Will my employees, customers or landlord find out?
Not from us. The business is marketed without its name or address, buyers sign a nondisclosure agreement and prove their funds before they learn who you are, and showings happen after hours or are presented as something else. The landlord is approached only once there is an accepted offer, because the lease has to be assigned.
How long does it take to sell a business?
Six to nine months from listing to closing is common for a well prepared small business, faster when the price is right and the records are clean, longer for businesses that need a licensed buyer or a franchisor's approval. The escrow period after an accepted offer is usually sixty to ninety days.

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