When you go to sell a McDonald’s franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… based on the median multiple of 0.34 and net sales The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue. of $2,908,000 in 2020, it would sell for $988,720. This is lower than the midpoint initial investment The amount of funds necessary to begin operations of a business or franchise including the first three months of operation. of $1,813,897 by about $800k.Your business would therefore sell for less than your initial total investment.
However, with net sales over $5 million, the median multiple increases to 0.86. Hence, owning multiple franchises whose average net sales are over $5 million would yield a bigger income Income, also known as earnings or profits, is money that a person or a business receives in return for working, providing a product or…. For example, if you own 10 outlets, the estimated net sales would be about $29,080,000. With a sell median multiple of 0.86, the resale value of this multi-system business would be $25,008,000 which is higher than the estimated initial investment of $18,138,970. The business will therefore be worth over $6 million more than your initial investment.