Usually as a multiple of the business's adjusted profit. bfa guidance gives a broad range, from about 1.5 up to 4 or 5 times adjusted operating profit, depending on the business. Property and other fixed assets are usually valued separately.
What moves the multiple
- How reliable the profit is, and whether it's growing.
- The brand's strength and the network's results.
- The remaining term of the franchise agreement. See Does the franchisor have to approve my franchise purchase?.
- Your territory, its size and potential.
- How much depends on the current owner personally.
What averages show
In the bfa/NatWest Franchise Survey 2018, the average resale was about 1.9 times profit. Every business is different, so use averages only as a rough check.
What "adjusted profit" means
The accounts are adjusted for one-off costs and for the owner's own pay, so the figure reflects what the business really earns. See What is EBITDA, and what does "maintainable" mean?
What lenders lend against
A lender values the business itself, and may value it below the asking price. If the gap is large, you'd have to make it up yourself or renegotiate. See How do lenders value a business I want to buy?
For more, read How to value a business you want to buy: what a lender will fund.
Last reviewed: 8 October 2026