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Franchisee and Franchisor
Business Valuation

Get an appraisal of your Franchise Business.

Find out how much your business is worth. Start the appraisal process today.

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Franchisors and franchisees trust BizWorth to provide accurate appraisals of their business

Certified reports

Credible, accurate reports prepared by certified, in-house appraisers.

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Bank-grade secure portal makes it easy to upload your data.

Full-service support

Your dedicated appraiser is available to answer questions and offer advice.

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How much is a Franchise Business worth?

We provide everything you need to understand your business' value.

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Certified reports by in-house appraisers

BizWorth reports are completed by NACVA certified appraisers who are available to answer your questions and explain your report.

Accepted by buyers, banks, courts, & IRS

No ballpark estimates that could cost you thousands, even millions, if it doesn’t hold up to review and scrutiny.

Easy data collection

BizWorth’s guided webforms help make data collection quick and easy. Our appraisers are available to help if you have questions.

Simple to understand reports

Your report is written for even non-financial readers to understand. We’re available to explain your report, answer questions and offer advice.

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How do you value a Franchise?

Accurate Valuation for Franchise Businesses: A business valuation from BizWorth is essential for estimating the sale price of a Franchise business. Through a thorough analysis of financial statements, brand strength, and operational efficiency, BizWorth provides a comprehensive understanding of the business's economic health within the franchise industry. This valuation surpasses traditional metrics, considering factors such as the strength of the franchise system, brand recognition, and the overall efficiency of franchise operations. With BizWorth's precision in franchise industry valuation, potential sellers gain insights that ensure the sale price reflects not only the financial standing but also the strategic and brand-driven value of the Franchise business in a dynamic and competitive market.

Holistic Expertise in Franchise Industry: BizWorth combines financial acumen with specialized expertise in the franchise sector when valuating businesses. Beyond numerical metrics, BizWorth considers factors such as the scalability of the franchise model, franchisee satisfaction, and adaptability to changes in consumer preferences. This holistic approach encompasses the demand for specific franchise offerings, the effectiveness of franchise support systems, and the potential for growth in market share. With a BizWorth valuation, Franchise businesses gain a competitive edge, empowering sellers with insights that appreciate the strategic and brand-driven value of their business in the complex and ever-evolving landscape of the franchise industry.

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Valuation Approaches for Franchise Businesses

Valuating a Franchise business involves considering various factors within the industry. Here are the primary valuation approaches for such businesses:

Income Approach:

  • Discounted Cash Flow (DCF) Analysis: This approach estimates the present value of the expected future cash flows generated by the Franchise business. Projected cash flows from franchise fees, royalties, and potential growth opportunities are considered, and an appropriate discount rate is applied to determine the present value.

Market Approach:

  • Comparable Company Analysis (CCA): The market approach involves comparing the Franchise business to similar businesses within the franchise industry that have been sold or valued recently. Key financial metrics, such as price-to-earnings ratios or enterprise value multiples, are used to derive a valuation based on market transactions.

Brand Recognition and System Strength:

  • For Franchise businesses, brand recognition and the strength of the franchise system are critical factors influencing value. A well-established and recognized brand with a proven franchise model may be valued higher due to increased market appeal and the potential for franchise expansion.

Number and Performance of Franchise Units:

  • The number and performance of franchise units play a significant role. Businesses with a successful track record of franchise unit growth, strong unit economics, and high-performing franchisees may be valued higher due to the potential for ongoing revenue and profit generation.

Franchise Agreement Terms and Royalty Structure:

  • The terms of franchise agreements and the structure of royalty payments are important considerations. Franchise businesses with favorable agreement terms, reasonable royalty structures, and franchisee-friendly policies may be valued higher due to increased attractiveness to potential franchisees.

Franchisee Satisfaction and Support Systems:

  • The satisfaction of franchisees and the effectiveness of support systems provided by the franchisor contribute to the overall value. Franchise businesses with satisfied and successful franchisees, coupled with robust support systems, may be valued higher due to the stability and strength of the franchise network.

Market Trends and Industry Analysis:

  • Keeping abreast of market trends and understanding the dynamics of the franchise industry is essential. The valuation considers the business's adaptability to changes in consumer preferences, emerging franchise trends, and the potential for growth in market share.

Legal and Regulatory Compliance:

  • Adherence to legal and regulatory standards within the franchise industry is a critical factor. Businesses with a strong commitment to compliance, clear legal documentation, and ethical business practices may be valued higher due to reduced risk and enhanced market reputation.

Valuation of Franchise businesses often requires a combination of these approaches to arrive at a comprehensive estimate. Engaging with professionals experienced in the franchise industry and business valuation is advisable to ensure an accurate and thorough assessment of the business's worth.

Valuation Reports for Franchise Businesses

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Certified Valuations

Business Valuations

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Pitch books / CIMs

Send professional–grade marketing collateral to maximize interest in your business for sale.

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Quality of Earnings

Quality of Earnings

Support the due diligence phase with a fast, affordable way to validate the past financial performance of a business.

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Field Audits

Order an expert field audit to physically examine an organization's accounts receivables, inventory and assets.

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Equipment Appraisals

Get an unbiased, certified appraisal of the operational machinery and equipment assets of a business.

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Why Choose BizWorth for Your
Business Valuation?

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Industry Expertise

Our team specializes in your industry, offering tailored insights and accurate valuations that reflect the unique dynamics of your business.

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Comprehensive Assessment

We consider all aspects, from financial metrics to reputation, ensuring a holistic evaluation that captures your business's true value.

Transparent Process

Our valuation methods are transparent and tailored to your business, giving you a clear understanding of how we arrive at the determined value.

Empowered Decisions

Whether you're buying, selling, or planning for the future, our valuations empower your decisions, guiding you towards the most strategic and profitable outcomes.

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The BizWorth Certified Difference

A lightweight valuation is a big risk that can end up costing you thousands – or even millions – of your hard-earned money. When you need an appraisal, the last thing you have time to worry about is whether your report will stand up to scrutiny.

Thanks to our deep valuation expertise, comprehensive access to market data, and unwavering commitment to NACVA professional standards – you won’t have to. From buy/sell agreements to litigation support, our in-house team of certified appraisers will ensure your valuation is as solid as the foundation your business was built on.

I need to feel confident that I can take my report to a bank, investor, attorney - whomever I want - and that what’s in the report is accurate. I like that your reports are certified, easy to read and easy to understand.
Victor A., Business Owner
The information and guidance really helped us put things in perspective and taught exactly what we needed to do in selling our small online business.
Leila M., Business Owner
Working with BizWorth for our first business valuation was so incredibly easy and helpful. We were worried we wouldn’t get all of the value we saw in our business in the sale, but their expertise and report gave us a lot of confidence.
Carolyn T. Business Owner
Highly recommended.
Provide amazing value
Very talented team.
Definitely reach out.
Honest, hardworking, extremely competent.
Well worth the investment.
Give you real numbers to negotiate with.
Extremely organized.
Super-smart people helping companies succeed.
Business Valuation Experts

Get an expert Franchise Business Appraisal

Shelia Darby, Managing Director of BizWorth

Shelia Darby

Managing Director, BizWorth

Serves as the managing director of BizWorth. Shelia's valuation experience spans nearly 25 years. The focus of her recent work has been on litigation engagements. Shelia is an elected member of the Ethics & Oversight Board of NACVA. Shelia is a Certified Valuation Analyst (CVA), Certified Master Analyst in Financial Forensics (MAFF) and a Certified Machinery and Equipment Appraiser (CMEA). She holds a bachelor's degree in finance from Baylor University and an MBA from Rice University.

Jon Donnel, Managing Director of Advisory at BizWorth

Jon Donnel

Managing Director, Valuation Advisory

Leads the Valuation Advisory Practice focused on complex valuations, loss profit calculations, partner buy-outs and disputes. Jon has held senior-level director positions for Fortune 50 companies and investment banks. He is a Certified Valuation Analyst (CVA) and holds a bachelor’s degree in economics and an MBA from Rice University.

Robert Brand

Director, Business Valuation

Leads BizWorth’s informational and certified business valuation practice. Robert is an officer of NACVA's Houston State Chapter and serves as the treasurer of Houston's Texas Association of Business Brokers. He is a Certified Valuation Analyst (CVA). Robert is a former Combat Engineer serving in Iraq for the U.S. Army and holds a bachelor's degree in finance from University of Houston.

Renee Schreier

Director of Operations

Manages BizWorth's operations and strategic planning initiatives, report production and customer applications. Renee serves as the secretary of Houston's Texas Association of Business Brokers and was a former operations administrator with Accenture. She holds a bachelor’s degree from Texas Lutheran University.

Joseph (Joey) Wilson

Senior Market Analyst

Leads BizWorth's industry and market research initiatives. Joey was a former production analyst with Scotiabank. He holds a BBA and Master of Finance degrees from the University of Oklahoma.

Dan Darby

Director of Pitch Books & CIMs

Leads Pitch Book and CIM report production. Former management consultant with several Big 5 and Fortune 50 companies. Holds a bachelor’s degree in Business Administration from Baylor University and a Master of Science in Organizational Leadership from Northwestern University.

Shelia Darby
Managing Director, BizWorth
Serves as the managing director of BizWorth. Shelia's valuation experience spans nearly 25 years. The focus of her recent work has been on litigation engagements. Shelia is an elected member of the Ethics & Oversight Board of NACVA. Shelia is a Certified Valuation Analyst (CVA), Certified Master Analyst in Financial Forensics (MAFF) and a Certified Machinery and Equipment Appraiser (CMEA). She holds a bachelor's degree in finance from Baylor University and an MBA from Rice University.
Jon Donnel
Managing Director, Valuation Advisory
Leads the Valuation Advisory Practice focused on complex valuations, loss profit calculations, partner buy-outs and disputes. Jon has held senior-level director positions for Fortune 50 companies and investment banks. He is a Certified Valuation Analyst (CVA) and holds a bachelor’s degree in economics and an MBA from Rice University.
Shelia Darby
Managing Director, BizWorth

Serves as the managing director of BizWorth. Shelia's valuation experience spans nearly 25 years. The focus of her recent work has been on litigation engagements. Shelia is an elected member of the Ethics & Oversight Board of NACVA. Shelia is a Certified Valuation Analyst (CVA), Certified Master Analyst in Financial Forensics (MAFF) and a Certified Machinery and Equipment Appraiser (CMEA). She holds a bachelor's degree in finance from Baylor University and an MBA from Rice University.

Jon Donnel
Managing Director, Valuation Advisory

Leads the Valuation Advisory Practice focused on complex valuations, loss profit calculations, partner buy-outs and disputes. Jon has held senior-level director positions for Fortune 50 companies and investment banks. He is a Certified Valuation Analyst (CVA) and holds a bachelor’s degree in economics and an MBA from Rice University.

Robert Brand
Director, Business Valuation

Leads BizWorth’s informational and certified business valuation practice. Robert is an officer of NACVA's Houston State Chapter and serves as the treasurer of Houston's Texas Association of Business Brokers. He is a Certified Valuation Analyst (CVA). Robert is a former Combat Engineer serving in Iraq for the U.S. Army and holds a bachelor's degree in finance from University of Houston.

Renee Schreier
Director of Operations

Manages BizWorth's operations and strategic planning initiatives, report production and customer applications. Renee serves as the secretary of Houston's Texas Association of Business Brokers and was a former operations administrator with Accenture. She holds a bachelor’s degree from Texas Lutheran University.

Joseph (Joey) Wilson
Senior Market Analyst

Leads BizWorth's industry and market research initiatives. Joey was a former production analyst with Scotiabank. He is a NACVA Certified Valuation Analyst (CVA) holds a BBA and Master of Finance degrees from the University of Oklahoma.

Dan Darby
Director of Pitch Books & CIMs

Leads Pitch Book and CIM report production. Former management consultant with several Big 5 and Fortune 50 companies. Holds a bachelor’s degree in Business Administration from Baylor University and a Master of Science in Organizational Leadership from Northwestern University.

Jack Nielsen
Financial Analyst

Leads financial analysis to support preparation of valuation reports and pitch books. Holds a Bachelor of Science in Economics from Texas A&M University.

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