To assign a valuation multiple for Arby’s franchises, we leverage estimates from DealStats, a database of acquired private company transactions sourced from U.S. business brokers and SEC filings. We reviewed the larger franchise industry as well as selling price multiples for larger systems where more transaction data is available.
Under $1 Million Net Sales
- Estimated Selling Price = Net Sales – 0.31
$1 Million – $5 Million Net Sales
- Estimated Selling Price = Net Sales – 0.34
Over $5 Million Net Sales
- Estimated Selling Price = Net Sales – 0.86
When you go to sell an Arby’s franchise based on the median multiple of .34 and net sales in 2020-21 of $1,296,616 it would sell for $440,849. This is lower than the midpoint investment of $1,471,975.
However, as an owner of multiple Arby’s franchises, you do have the ability to minimize resale loss. Sandwich shop owners with over $5 million in sales have a median multiple of 0.86. So, if you had 5 Arby’s stores, amounting to $6,483,080 in sales, selling your multiunit franchise system would amount to $5,575,448. This is going to minimize your loss, as it would cost around $7,359,875 to get this network running.