Resale Valuation
Estimate what a franchise unit is worth on resale — an EBITDA multiple adjusted for agreement runway, operating model, lease, and margin quality. Runs in your browser.
What this calculates
A resale is priced off earnings, but the multiple is not a constant — it moves with how transferable the business is. This applies an EBITDA multiple and then adjusts it for the factors a buyer will actually argue about: remaining term on the franchise agreement and the lease, how dependent the unit is on the current owner, the revenue trend, and whether the equipment is due for replacement.
What you will need
Normalised EBITDA. Add back the current owner's discretionary spending and any above-market salary they pay themselves, and deduct a market wage for whoever will do the work after the sale. Unnormalised earnings are the most common reason two parties value the same unit differently.
Remaining agreement and lease term. A buyer is purchasing the years that are left. A short remaining term with renewal at the franchisor's discretion is a genuine discount, not a negotiating position.
Owner dependence. If the owner is the manager, the chef or the relationship, part of what you are selling walks out the door on completion. That reduces the multiple regardless of how good the earnings look.
How to read the result
The number is a defensible opening position, not a market price — the market price is what a qualified, franchisor-approved buyer will actually pay. Test it in reverse: at this price, with typical financing, what cash-on-cash return does the buyer earn? If that return is not attractive to someone who could put the money elsewhere, the price will not hold no matter how the multiple was derived.
Questions about this tool
Why is my unit worth less than a similar one nearby?
Usually remaining term, lease terms or owner dependence rather than earnings. Two units with identical profit are not identical assets if one has eight years of agreement remaining and the other has two.
Does the franchisor affect what I can sell for?
Yes, substantially. Most agreements give the franchisor approval over the buyer and often a right of first refusal, and transfer fees come out of your proceeds. Read the transfer clause before you set a price.
Should I use EBITDA or SDE?
For an owner-operated single unit, seller discretionary earnings is often the more honest basis because it makes the owner's own labour explicit. Whichever you use, be consistent between the earnings figure and the multiple you apply to it.
For reference only; not legal, tax, or investment advice. Results depend entirely on the figures you enter — check them against your own quotes and your franchise agreement before acting on them.