i want to sell my daycare what is the price of the busim

We are indebted to Business organisation Brokerage Press for the post-obit article and information. Business Brokerage Press is the virtually respected and authoritative source of small concern pricing guidelines available.  They may be reached at http://world wide web.bbpinc.com.

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From the October newsletter of Business Brokerage Press:

From the upcoming 2013 Concern Reference Guide , we have listed franchises with a "quick" rule of thumb, or range, usually expressed as a percentage of sales. For many of them we have based it on quite a few actual sales; others may accept been based on just a few; and, in some cases, only ane where nosotros felt it was appropriate. They tin be a practiced starting point for pricing the business.

Many of the franchises are well known while others are very new with but several units. Past the time this goes to printing, some of the franchises may take folded, sold or merged. We try to go on this as up-to-date as possible. Nosotros could apply your aid. To contribute to our always-growing list, only consummate the franchise resale grade on our web site. Please also email tom@bbpinc.com if you detect that a franchise has disappeared or merged, etc. Apparently the big changes such as Mail Boxes to UPS Store volition be caught by u.s. or past our researchers (hopefully).

Keep in listen that rules of thumb are simply that. Every business is dissimilar and rules of thumb will never have the place of a concern valuation or even an opinion of value. Rules of thumb are also non intended to create a specific value or to be used for an appraisal. But, they will give you a quick ballpark thought of what the business might sell for with everything else existence equal. A rule of thumb will tell you whether a seller is in the ballpark when he or she tells you what they think their business is worth or what they want to sell it for.

For up-to-engagement information and for those companies where the number of units is not shown, track down their web site. Read the footnotes where indicated.

FRANCHISE LIST – A thru C:

A number in parentheses abreast a franchise indicates a annotation at the stop of the list.

Ace Cash Express 1.25

Ace Hardware stores (1) 45%

Adam and Eve 35%

Andy on Phone call 25%

Aero Colours 70%

All Melody & Lube twenty – 25%

AlphaGraphics 60 – 65%

Allegra Press 60 – 65%

American Poolplayers Clan (APA) (2) 140%

Andy OnCall 25%

Arctic Circle 40%

Atlanta Breadstuff Visitor 25 – 30%

Baskin-Robbins Ice Cream 45 — 50%

Batteries Plus 30 – 35%

Beef O'Brady's 22%

Ben & Jerry'southward 35 – xl%

Betwixt Rounds Bagel Cafeteria & Baker (3) 40 – 45%

Big Apple Bagels 35 – 40%

Big City Burrito 55 – lx%

Big O Tires  – 35%

Blackness Jack Pizza 45 — 50%

Blimpies 45 — 50%

Boba Loca xxx%

Bresler'south Ice Cream 35 – 40%

Bruster'south Ice Cream 50%

Upkeep Blinds (4) 45 – 50%

Burger King twoscore%

Camille's Sidewalk Café xxx – 35%

Carl'due south Jr twoscore – 50%

Cartridge Earth thirty — 35%

Carvel Ice Cream/Restaurants 55%

Car X Auto Service 35 – 40%

CertaPro Painters 45%

Chester's International 45%

Cheeburger Cheeburger 35 — forty%

Chick-Fil-A lx – lxx%

Closets past Design fifty%

Closet Factory 50%

Common cold Stone Creamery 30%

Conroy'due south Flowers 55 – lx%

Cost Cutter's Family Hair 55 – threescore%

Coverall Cleaning Systems (5) ii–3 times mo. sales

Culligan Dealerships eighty – 120%

Curves for Women (6) 35 — forty%

(one) Sales seem to indicate that smaller sales bring a higher multiple (l% +) than stores with sales over a million, which seem to bring lower multiples. Price is plus inventory which may be the cause of lower multiples for larger stores.

(two) $i,000 to $ane,800 per team in sales; selling price – $2,000 to $2,500 per team

(three) 3 – 4 times earnings

(4) 2 times annual EBIT, plus inventory & equipment

(5) Primary/Expanse developer – Sell for 3 to 5 times earnings plus some bluish heaven for size and potential of market (some cases).

(six) Prices for Curves for Woman seem to exist all over the place. Some sales have been reported at 75+% of sales. One auction reported was 1.31 times sales for four units.

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FRANCHISE LIST – D thru L:

A number in parentheses indicates a notation at the end of the list.

Dairy Queen 45 — 50%

Deck the Walls 35 – 40%

Del Taco ninety%

Dick's Wings and Grill 35%

Dollar Discount Stores twenty%

Domino'southward Pizza l – 55%

Dream Dinners 45%

Dr. Vinyl 75%

Dry out Cleaners U.s.a. 55%

Dunkin' Donuts (vii) 75 – 80%

Eagle Manual Shops (8) 40%

Surroundings Control 42%

Fantastic Sam's (nine) 35 – twoscore%%

Fast Set up (Jewelry) 80 – 85%

Fast Frame 32%

FasTrac Kids 45%

Fast Signs 42 – 46%

FedEx Ground 65 – 70 %

Firestone Tire Stores 35%

Floppy'south Mouse Lodge seventy%

Foot Solutions 60%

Framing & Art Centers 60%

Friendly Computers 30% — 35%%

Friendly'south Restaurant xl%

Geeks on Phone call (Australia) lx%

General Diet Centers 40%

Godfather'due south Pizza 28%

Goin' Postal 30 – 35%

Goodyear Shop (Business organization Opportunity) 35%

Grease Monkey fifty%

Great Clips 1 – 1.v SDE

Not bad Harvest Bread Co. (10)

Great Steak 50– 55%

Grout Md 85 — xc

Hallmark Cards 40%

Harley-Davidson Motors (11) 87%

Heavenly Hams xxx — 35%

Domicile Helpers 35%

Home Squad Inspection 35%

Honest 1 Auto Care 70 %

House Doctor 24%

Hungry Howie's Pizza & Subs 35%

Huntington Learning Center threescore%

i9 Sports 65 – 70%

Iceberg Drive Inn forty – 45%

Jani-Rex 26-5 — 30%

Jersey Mike's Subs 50%

Jiffy Lube 50%

Jimmy Johns 65 — 70%

Johnny Rockets 75%

Jon Smith Subs 20%

Juice It Up 24%

Kentucky Fried Craven (KFC) thirty – 35%

Kuman Math & Reading Centers eighty – 90%

Kwik Kopy (printing) 50 – 60%

Lady of America 45 — l%

Laptop Xchange 85 — xc%

Lenny'southward Subs xv%

Freedom Tax Service forty%

Lil' Dino's Subs (12) 64%

Little Caesar's Pizza 55%

Logan Farms (dear-glazed hams) xxx%

(7) Dunkin Donuts shops now sell for 75 – 125% of almanac sales, depending mainly on geography. It'southward nigh 125% in New England, 100% of sales in the Mid-Atlantic States, and lower in the South and Midwest. There really is not a Dunkin Donut marketplace in the Westward. A sale in Colorado was reported that sold for 22% of sales.

(8) Eagle is a Texas based franchise http://www.eagletransmission.com. They are the strongest manual franchise in the Dallas area with 21 locations and are a minor player in Houston and Austin. The attraction is the royalties at 4% in Dallas and 6% Houston and Austin, and the training is "hands on" locally.

(nine) These stores sell for maximum ii times SDE versus $120,000 to $150,000 + for new. 10 to 12 sales have been reported at two times SDE for absentee owner stores (most are) and 2 times SDE + manager'southward salary of owner operated.

(ten) 3.3 – 3.iv times SDC

(11) Netted $2,100,000 and seller retained 20% of buying

(12) One sold for lxxx% of sales, but it was located in an part building with vending rights.

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FRANCHISE Listing – M thru Z:

A number in parentheses indicates a note at the end of the listing.

MAACO Machine Paint 40%

MaggieMoo'south Ice Cream (thirteen) 32%

Maid Brigade 45%

Mama Fu'south 30%

Marble Slab Creamery 45 — 50%

Martinizing sixty%

McGruff'south Safe Kids ID System 52%

Meinke Motorcar Care Center 30 – 35%

Merry Maids 45%

Midas Muffler 35 – 40%

Minuteman Press 65%

Molly Maid 40%

Money Mailer xl – 45%

Mountain Mike's Pizza 27%

Moto Photograph 72%

Mr. Gatti's Pizza 25 – 30%

Mr. Jim's Pizza 35 – 40 %

Mr. Payroll 1.3%

Mr. Rooter Plumbing (14)

Mrs. Fields Cookies 68%

Murphy'due south Deli 50%

Music Get Around 40 %

My Favorite Muffin 30 — 35%

Nathan's Famous 100%

Nature's Fashion Café 45%

Natural Chicken Grill 25 – 30%

New York Pizzeria 35 — forty%

Obee's Soup/Salad/Subs 55 — 60%

Oil X Change xxx%

Once Upon A Child 25%

Orange Julius 32%

Original Italian Pie 35 — forty%

OXXO Dry Cleaners 65%

Pak Mail fifty%

Panera Breadstuff 35 – xl%

Papa Johns PIzza (xviii)

Papa Irish potato'southward Pizza 35 – 40%

Parcel Plus 25%

Petland 57%

Pillar to Post – Home Inspection twoscore%

Pizza by George 50%

Pizza Manufacturing plant (xv) 35%

Pizza Inn 47%

Planet Beach 35 — 40%

Play It Again Sports 40 — 45%

Precision Melody Auto Intendance 36%

Pump It Up xxx%

Purrfect Machine l – 55%

Quaker Land Lube 50%

Quizno'due south Classic Subs (16) 25 — 30%

Cerise Robin Gourmet Burgers 32%

Reniassance Executive Forums 75%

Rocky Mountain Chocolate 65 – seventy%

Rita's – Ices, Cones, Shakes lxxx – one.3%

Roly Poly Sandwiches 34%

Safe Ship 40%

Samurai Sam'southward Teriyaki Grill 50%

Sarpino'southward Pizza 50%

Sears Carpet & Upholstery Care thirty%

Senior Helpers xl – 45%

ServiceMaster Make clean 55 – sixty %

Serv Pro 90%

Shell Rapid Lube (Business Opportunity) 50%

Signarama 55 – 60%

Sir Speedy (printing) (17) 55 – sixty

Smart Box 48%

Smoothie King 40 – 45%

Snap Fettle xl%

Soup Man (Original) 30%

Subway (eighteen) 65 – lxx %

SuperCoups xl – 45%

Superior Inspection 1.iii%

Swisher (restroom hygiene service) 75%

Taco John's 31%

Tan USA 60 – 65%

TCBY 40 – 45%

The Maids forty – 45%

Togo'due south Eating house 60 – 65%

Topz Healthy Burgers 40%

Tropical Smoothie Café 55 — 60%

Two Men and a Truck 43%

U Relieve (auto rental) (18) x – 15%

UPS Stores 40 – 45%

Valpak Mailers 3 SDE

Valvoline Instant Oil Modify 50%

We the People 86%

Wild Birds Unlimited 30 – 35%

Wine Kitz (Canada) 55%

Wingstop Restaurants 33%

Wireless Toyz 45 — fifty%

Worldwide Express 50 – 55%

Your Office USA 60%

You've Got Maids threescore%

Ziebart International (auto services) 42%

Zoo Health Club 20%

(thirteen) One MaggieMoo's Water ice Cream & Treatery auction was reported at 92%, 3 years old, great location, growth at xv% approx a year; but merely 15% down payment

(fourteen) 1 – 4 times SDC plus difficult avails. The number between 1 – iv depends on several factors such as the possessor operating a truck, etc.

(15) Pizza manufactory has approximately140 units in the x Western States.

(xvi) Two sales in the Western states were reported at 99% of sales and another at 65% of sales. However, two sales in the lower Midwest were reported at 38% and xl%. Ane auction in New York was reported at 48% of annual sales, another in Massachusetts at 51% and i in Nevada at 45%.

(17) 1 sale was reported at 70% of sales.

(xviii) "As a one-time multi-unit Subway franchisee and a Development Agent, now a business broker Subway stores, there are many unlike formulas I accept seen. xxx to xl weeks sales, or lx to 70% of sales is a popular one. Actual sales price depends on supply and need and is closer to 70% of sales in And then. CA."

"On stores with gross sales of $300,000 to $500,000, multiple of xl% of annual sales. On stores with sales of $500,000+, multiple of 50% of annual sales. Franchisor would like xxx% as a downwards payment on resales."

"I would suggest for Subway, in New England and maybe all of New England, due to the high number of pizza restaurants, Subways tend to sell for a much lower of percentage of sales than 47% — sometimes as low as 20 – 25%."

(19) Price does not include cost of vehicles, and revenues practise non include auto sales.

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William Bruce is a business organization broker and appraiser who subscribes to the Business Brokerage Press publications.  He consults nationally on issues involved in business transfers and valuation.  He may exist reached at WilliamBruceOnline@gmail.com or (251) 990-5934. His business brokerage website may be viewed at www.WilliamBruce.net.

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Source: https://williambruce.org/2012/10/05/what-is-a-franchise-really-worth/

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