To assign a valuation multiple for Dream Vacations 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 of travel agencies.
Under $5 Million Net Sales
- Estimated Selling Price = Net Sales * 0.47
Over $5 Million Net Sales
- Estimated Selling Price = Net Sales * 7.07
When you go to sell a Dream Vacations franchise based on the median multiple of 0.47 and net sales of $117,531, it would sell for $55,239. This is significantly higher than the midpoint investment of $12,072 and even higher than the highest investment of $21,000.
The more franchises you own, the more earning potential you have as private equity firms become interested in your business instead of individual owner-operators.