Franchise Businesses Sell At Higher Price Point
Company Added
Company Removed
Apply to Request List

Franchise Businesses Sell At Higher Price Point

Franchise Businesses Sell At Higher Price Point

When it comes to resale value, franchises beat non-franchise businesses, according to a new study from Palm Beach Atlantic University’s (PBA) Rinker School of Business.

After examining 2,159 business resales over a ten year period, the researchers found that franchise businesses sold at a 1.5 times higher price than non-franchise businesses. In addition, small businesses in the food/restaurant category sold at a .5 times higher price than other personal and professional small business categories.

“Our research supports the value of a franchise branded business,” said Dr. John P. Hayes, director of PBA’s Titus Center for Franchising. “If two people operate the same type of business over a period of years and enjoy similar sales, the franchise business is more likely to sell at a higher price point. Business owners ought to be aware of that information in advance of launching a business.”

The study titled “Determinants Impacting Resale Premium Disparity when Selling a Small Business: A predictive Non-Linear Approach,” will be published in the Fall 2021 issue of the “Journal of Business and Economic Studies.”

Published: May 26th, 2021

Share this Feature

PuroClean
SPONSORED CONTENT
PuroClean
SPONSORED CONTENT
PuroClean
SPONSORED CONTENT

Recommended Reading:

Comments:

comments powered by Disqus
American Family Care
ADVERTISE SPONSORED CONTENT

FRANCHISE TOPICS

Edible Arrangements
ADVERTISE SPONSORED CONTENT
Conferences
Caesar's Palace, Las Vegas
AUG 31-3RD, 2021

Buffalo Wild Wings® is the ultimate place to get together with your friends, watch sports, drink beer, and eat wings.
Cash Required:
$750,000
Request Info
Gong cha is a leading, global beverage franchise delivering fresh, premium bubble tea guests can’t get enough of. We offer outstanding support...
Cash Required:
$150,000
Request Info

Share This Page

Subscribe to Multi-Unit Franchisee Report