I’ve been looking at a certain industry and it seems like regular businesses are going for 3X but franchises are going for 4X. Same industry.
why? Ultimately, I’m looking at how much money is left after I pay off my loan and franchises just never look as good. There something I’m missing?
I thought about making an offer to ask people to lower the price, but I would love to hear thoughts from the community first
Franchise multiples vs. regular businesses
by a searcher from Northwestern University - Kellogg School of Management
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We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
The reason for higher multiples is: 1) easier access to lending, and 2) an established marketplace (other franchisees and franchisor ROFR).