What is My Franchise Worth?
BizEquity.com is an online business valuation service, and is completely free. We had the pleasure of speaking with the founder, Tom Taulli. We asked Tom if franchises were valued differently than mom-and-pop business and this is what he had to say:
“Interestingly enough, based on our experience, there is usually not much difference between a franchise and independent small business valuation. So our business valuation tool does not take this distinction into account.”
Tom also said, “A key to valuation is the cash flow of the business or franchise. And our tool has a way to determine the actual free cash flow. But, BizEquity is more than just pegging a valuation. We also generate a 28-page report that provides recommendations and advice as well as benchmarks on your company’s performance.”
So, after talking with Tom, we have discovered that a franchise and a small mom-and-pop business are usually valued the same. If you want a free business valuation, visit BizEquity.com.
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