When purchasing a new or established franchise, or selling a franchise, a reliable appraisal will provide you with essential information to make your decision.
Your requirements may include a Fair Market Valuation (FMV) of equipment and leasehold improvements, or a Going Concern Value (GCV) based on cash flow and net income. If franchise financing is required, it may be desirable to obtain a combination of these valuations into one report.
We have appraised franchises in numerous locations throughout western Canada. Wherever you are in Canada or the US - our on-site franchise valuation services can give you the information you need, when you need it.
In some cases, an established franchise could be very lucrative with a large cash flow and a very healthy profit. This could enhance the value of this business on a Going Concern basis far exceeding the Fair Market Valuation (FMV) of equipment and leasehold improvements. In such a scenario, the FMV of the assets is secondary, as the cash flow is the main selling point.
This would not be appropriate when purchasing a new franchise since the cash flow has not yet been proven. In this case, all equipment would probably be new and purchased from that particular franchiser, so a Fair Market Value would be used.
When purchasing an established franchise outlet, past financial statements should be readily available to determine cash flow, and because all equipment and leasehold improvements are in place, such a business could be an attractive alternative to a new outlet.
Our franchise appraisal experience includes:
Burger King | Cinnabon | Cinnzeo | Home Hardware | Husky Gas Station
Minuteman Press | Mucho Burrito | Petro-Canada | Red Basket | Subway
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