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Franchise Resale Information

From the 2013 Business Reference Guide

Name of Franchise (Notes) and Selling Price as a % of Sales or SDE Multiple

AAMCO Transmission 40%–45%
A & W Restaurants 40%–50%
Ace Cash Express 1.25
Ace Hardware stores (1) 45%
Adam and Eve 40%
Andy on Call 25%
Aero Colours 75%
All Tune & Lube 20%–25%
AlphaGraphics 60%–65%
Allegra Printing 70%
American Poolplayers Association (APA) (2) 1.4 SDE
Arctic Circle 50%
Atlanta Bread Company 25%–30%
Baskin-Robbins Ice Cream 46%–56%
Batteries Plus 30%–35%
Beef O’Brady’s 22%
Ben & Jerry’s 35%–40%
Between Rounds Bagel Deli & Bakery (3)
Big Apple Bagels 42%
Big City Burrito 55%–60%
Big O Tires 35%
Black Jack Pizza 55%–60%
Blimpies 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 60%
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 62%
Cold Stone Creamery 30%–35%
Conroy’s Flowers 55%–60%
Cost Cutter’s Family Hair 57%
Coverall North America (5) 2–3 times mo. sales
Culligan Dealerships 80%–120%
Curves for Women (6) 2.0 SDE
Dairy Queen 45%–50%
Deck the Walls 35%–40%
Del Taco 90%
Dick’s Wings and Grill 35%
Dollar Discount Stores 20%
Domino’s Pizza 50%–55%
Dream Dinners 45%
Dr. Vinyl 75%
Dry Cleaners USA 55%
Dunkin’ Donuts (7) 75%–80%
Eagle Transmission Shops (8) 40%
Environment Control 42%
Fantastic Sam’s (9) 35%–40%
Fast Fix (Jewelry) 80%–85%
Fast Frame 32%
FasTrac Kids 45%–50%
Fast Signs 42%–46%
FedEx Ground 65%–70 %
Firestone Tire Stores 35%
Floppy’s Mouse Club 70%–75%
Foot Solutions 60%—65%
Friendly Computers 30%
Framing & Art Centre 60%
Friendly Computers 35%–40%
Friendly’s Restaurant 40%
Geeks on Call 60%
General Nutrition Centers 40%
Godfather’s Pizza 28%
Goin’ Postal 30%–35%
Goodyear Store (Business Opportunity) 35%
Grease Monkey International 58%
Great Clips 1–1.5 SDE
Great Harvest Bread Co. (10)
Great Steak & Potato 55%–60%
Grout Doctor 89%
Hallmark Cards 40%
Harley-Davidson Motors (11) 87%
Heavenly Hams 48%
Home Helpers 35%
Home Team Inspection 36%
Honest 1 Auto Care 70%–75%
House Doctor 24%
Hungry Howie’s Pizza & Subs 35%–40%
Huntington Learning Center 60%
i9 Sports 65%–70%
Iceberg Drive Inn 40%–45%
Jani-King 26%
Jersey Mike’s Subs 50%
Jiffy Lube 50%
Jimmy John’s 65%–70%
Johnny Rockets 80%–90%
Jon Smith Subs 20%
Juice It Up 24%
Kentucky Fried Chicken (KFC) 30%–35%
Kwik Kopy (printing) 50%–60%
Kumon Math & Reading Centers 45%–50%
La Estancia 35%–40%
Lady of America 45%–50%
Laptop Xchange 85%–90%
Lenny’s Subs 15%
Liberty Tax Service 40%
Li’l Dino Subs (12) 64%
Little Caesar’s Pizza 55%
Logan Farms (honey-glazed hams) 30%
MAACO Auto Paint 40%
MaggieMoo’s Ice Cream (13) 32%
Maid Brigade 45%
Mail Boxes, Etc. (See UPS Stores) 40%–45%
Mama Fu’s 30%
Marble Slab Creamery 45%–50%
Martinizing 60%
McGruff’s Safe Kids ID System 52%
Meineke Car Care Center 30%–35%
Merry Maids 45%
Midas Muffler 35%–40%
Minuteman Press 65%
Molly Maid 40%
Money Mailer 40%–45%
Mountain Mike’s Pizza 27%
Moto Photo 72%
Mr. Gatti’s Pizza 25%–30%
Mr. Jim’s Pizza 35%–40 %
Mr. Payroll 1.3%
Mr. Rooter Plumbing (14)
Mrs. Fields Cookies 68%
Murphy’s Deli 50%
Music Go Around 40%
My Favorite Muffin 30%–35%
Nathan’s Famous 100%
Nature’s Way Café 45%
Natural Chicken Grill 25%–30%
New York Pizzeria 35%–40%
Obee’s Soup/Salad/Subs 55%–60%
Oil X Change 30%
Once Upon A Child 25%
Orange Julius 32%
Original Italian Pie 35%–40%
OXXO Dry Cleaners 65%
Pak Mail 50%
Panera Bread 35%–40%
Papa John’s Pizza (15)
Papa Murphy’s Pizza 35%–40%
Parcel Plus 25%
Petland 57%
Pillar to Post—Home Inspection 40%
Pizza by George 50%
Pizza Factory (16) 35%
Pizza Inn 47%
Planet Beach 35%–40%
Play It Again Sports 40%–45%
Precision Tune Auto Care 36%
Pump It Up 30%
Purrfect Auto 50%–55%
Quaker State Lube 50%
Quizno’s Classic Subs (17) 25%–30%
Red Robin Gourmet Burgers 32%
Renaissance Executive Forums 75%
Rocky Mountain Chocolate Factory 65%–70%
Rita’s–Ices, Cones, Shakes 80%–130%
Roly Poly Sandwiches 34%
Safe Ship 40%
Samurai Sam’s Teriyaki Grill 50%
Sarpino’s Pizza 50%
Sears Carpet & Upholstery Care 30%
Senior Helpers 40% to 45%
ServiceMaster Clean 55%–60%
Serv Pro 90%
Shell Rapid Lube (Business Opportunity) 50%
Signarama 55%–60%
Sir Speedy (printing) (18) 55%–60%
Smart Box 48%
Smoothie King 40%–45%
Snap Fitness 40%
Soup Man (Original) 30%
Subway (19) 65%–70 %
SuperCoups 40%–45%
Superior Inspection 1.3%
Swisher (restroom hygiene service) 75%
Taco John’s 31%
Tan USA 60%–65%
TCBY 40%–45%
The Maids 40%–45%
Togo’s Eatery 60%–65%
Topz Healthy Burgers 40%
Tropical Smoothie Café 50%—55%
Two Men and a Truck 43%
U Save (auto rental) (20) 10%–15%
UPS Stores 40%–45%
Valpak Mailers 3 SDE
Valvoline Instant Oil Change 50%
We the People 86%
Wild Birds Unlimited 30%–35%
Wine Kitz (Canada) 55%
Wingstop Restaurants 33%
Wireless Toyz 45%–50%
Worldwide Express 50%–55%
Your Office USA 60%
You’ve Got Maids 60%
Ziebart International (auto services) 42%
Zoo Health Club 20%

NOTES: (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 Women 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. (7) In … Dunkin Donuts shops now sell for 75–125% of annual sales, depending mainly on geography. It’s about 125% in New England, 100% of sales in the Mid-Atlantic States, and lower in the South and Midwest. There really is not a Dunkin’ Donuts market in the West. A sale in Colorado was reported that sold for 22% of sales. (8) Eagle is a Texas-based franchise www.eagletransmission.com. They are the strongest transmission franchise in the Dallas area with 21 locations and are a minor player in Houston and Austin. The attraction is the royalties at 4% in Dallas and 6% Houston and Austin, and the training is “hands on” locally. (9) These stores sell for maximum 2 times SDE versus $120,000 to $150,000 + for new. 10 to 12 sales have been reported at 2 times SDE for absentee owner stores (most are) and 2 times SDE + manager’s salary of owner operated.(10) 3.3 – 3.4 times SDE (11) Netted $2,100,000 and seller retained 20% of ownership. (12) One sold for 80% of sales, but it was located in an office building with vending rights. (13) One MaggieMoo’s Ice Cream & Treatery sale was reported at 92%, three years old, great location, growth at 15% approx. a year; but only 15% down payment (14) 1–4 times SDE plus hard assets. The number between 1–4 depends on several factors such as the owner operating a truck, etc. (15) The only sale reported of Papa John’s was a 3-store chain which sold for $475,000 with $150,000 down and grossed $1,191,700. (16) Pizza factory has approximately140 units in the 10 Western States. (17) Quiznos, which has struggled as a higher-priced alternative to Subway, has closed an estimated 1,000 of its U.S. shops (the company won’t confirm the number) and has begun putting mini-stores in gas stations in a bid to boost sales. April 2011, www.msn.com (18) One sale was reported at 70% of sales. (19) “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%.” (20) Price does not include cost of vehicles, and revenues do not include auto sales.

Have you had a franchise resale in 2013?

Complete and send this email form every time you have a franchise resale to help build and update our data base of franchise resales. This information will give you a starting point for pricing them when you next get one for sale.. We will publish an updated list periodically in the online Business Broker newsletter, on the Business Reference Guide Online and in the next edition of our Business Reference Guide, or you can obtain the latest version by emailing me at tom@bbpinc.com.

We would appreciate the results of any franchise resales your office participates in during the year. The more sales, the more accurate the rules of thumb. Any comments or additional information you would like to add would also be appreciated.

Any questions, concerns, etc please contact me at tom@bbpinc.com.

Information Requested on the Email Form:

• Name of Franchise:
• Type of Business:
• Location (City & State):
• Gross Annual Sales: $
• Selling Price (Exclusive of Real Estate): $
• Down Payment: $
• Is Inventory Included?
• Submitted by:
• Name of Firm:
• Phone Number:
• Comments or Additional Information:

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