The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Close
How is a resale franchise valued?
Consideration must be given to each element of what is being bought and sold. These will often include fixed assets, current assets, that mystifying element called ‘goodwill’, plus whatever has to be paid to the franchisor for a new franchise agreement and training. Fixed assets need to be valued at their current value to the purchaser. This takes into account the cost to purchase the assets new, less a reduction for wear and tear and whether the franchisor will allow the new franchisee to continue to use these assets. Current assets, eg stock, should be valued on the current cost of the items, with a reduction for any old, unseasonable or unsaleable stock. Goodwill is the area that can be most contentious. The rationale of goodwill is that there is already an established business that ought to immediately generate sales and profits for the purchaser and that this therefore provides a value to him over and above what he might expect from a ‘cold-start’ situation. Potential purchasers should take professional advice from someone familiar with the franchise resale process, regarding this important element of the business valuation.
You might also be interested in
![Author: Vincent Anthony Author: Vincent Anthony](/images/made/15a98ba108c60ca5852ed10cddec73bd16bc798c.jpg)
Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more
![Author: Louise Harris Author: Louise Harris](/images/made/81463d158e3d961e27c0ebcdf232b7072d2f3fdf.jpg)
Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more
![Author: Shelley Nadler Author: Shelley Nadler](/images/made/30ede99be89f361526162856856bd0d4018f3a4b.jpg)
Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more
![Author: Alan Wilkinson Author: Alan Wilkinson](/images/made/65741c6bb70d1e745499072da5482c43f7dea846.jpg)
Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities
![Aegis Care Solutions logo](/images/made/images/uploads/companies/Aegis_Care_Solutions_logo_75_75_s.jpg)
Start your own Aegis Care Solutions franchise
Yes
Find Out MoreN/A
![Aegis Care Solutions logo](/images/made/images/uploads/companies/Aegis_Care_Solutions_logo_75_75.jpg)
Request Free Information
Send a free enquiry to Aegis Care Solutions for further information!
![Oodles logo](/images/made/images/uploads/companies/oodles_75_75_s.png)
Start your own Oodles franchise
Yes
Find Out MoreN/A
![Oodles logo](/images/made/images/uploads/companies/oodles_75_75.png)
Request Free Information
Send a free enquiry to Oodles for further information!
![Explorer Franchise by Hays Travel logo](/images/made/images/uploads/companies/Explorer_Travel_logo_75_75_s.png)
Start your own Explorer Franchise by Hays Travel franchise
Yes
Find Out More£35,000
![Explorer Franchise by Hays Travel logo](/images/made/images/uploads/companies/Explorer_Travel_logo_75_75.png)
Request Free Information
Send a free enquiry to Explorer Franchise by Hays Travel for further information!
![Numi Scan logo](/images/made/images/uploads/companies/135201563_1043278799516571_5572511620065662275_n_75_75_s.jpg)
Start your own Numi Scan franchise
Yes
Find Out MoreReturn of initial investment and an...
![Numi Scan logo](/images/made/images/uploads/companies/135201563_1043278799516571_5572511620065662275_n_75_75.jpg)
Request Free Information
Send a free enquiry to Numi Scan for further information!
![The Travel Franchise logo](/images/made/images/uploads/companies/TTF_new_Logo_75_41_s.jpg)
Start your own The Travel Franchise franchise
Yes
Find Out MoreN/A
![The Travel Franchise logo](/images/made/images/uploads/companies/TTF_new_Logo_75_41.jpg)
Request Free Information
Send a free enquiry to The Travel Franchise for further information!
Companies to Consider
![Newsletter Signup](https://cdn.what-franchise.com/assets/images/misc/sidebar-newletter.jpg)
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
Why business coaching is a springboard to franchising success
Added one day ago | 2 min read
-
How to run a successful dessert restaurant
Added 3 days ago | 2 min read
-
Extra Help targets further expansion
Added one week ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Over 50k
If budget is not an issue, then don't miss these.
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
What Franchise Newsletter
Keep up to date with all the industry news