To assign a valuation multiple for El Pollo Loco 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 $5 Million Net Sales
- Estimated Selling Price = Net Sales * 0.55
When you go to sell an El Pollo Loco franchise based on the median multiple of .55 and net sales in 2021 of $2,027,083, it would sell for $1,114,895. This is slightly lower than the midpoint investment of $1,200,000.
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.