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How to Value a Franchise Business

Do you need to know how to value a franchised business?

A large number of businesses operate as franchises, in which a separate entity (the franchisor) creates a brand identity for a product that is sold through a system of franchised retailers (the franchisees).

The transferable value – including the intangible value or ‘goodwill’ - of a franchise depends can be influenced by the terms of the franchise agreement.

Because many franchise agreements prohibit the franchisee from selling the franchise to a third party or require approval by the franchisor, the purposes for business valuation in a franchise setting are narrower than those involving an independent company.

Still, for a variety of reasons – management buy-out, share transfer, marital dissolution, tax planning etc – the value of a franchise may need to be determined.

R A Valuation Services specialises in providing sensibly and competitively priced formal company valuation and business valuation reports for all types and sizes of franchise models and businesses.


How to Value a Franchise Business


An expert business valuation supported by a professionally prepared Valuation Report from an independent and authoritative source is an essential aid for:

  • Acquisition and divestment negotiations
  • Management buy-out and management buy-in
  • Business sale and business purchase
  • Director, shareholder, partner change
  • Restructuring
  • Matrimonial / divorce settlements
  • Dispute resolution
  • Litigation
  • Tax planning (e.g. EMI schemes), tax agreements and tax disputes
  • Incorporation
  • Borrowing and funding
  • Business development
  • Strategic planning
  • Performance benchmarking and indicators
How to Value a Franchise Business


Valuation Reports produced by R A Valuation Services Ltd are bespoke and geared to each client’s individual circumstances and requirements; they are definitive and realistic in the market place. As we are recognised as expert witnesses for supplying Valuation Reports to UK courts and HMRC queries/challenges, we are acknowledged to be the authoritative business valuer by:

  • HMRC including:
  • Shares and Assets Valuations (SAV)
  • Valuation Office Agency (VOA)
  • UK Courts
  • Banks
  • Other lenders and financial intermediaries
  • Tax specialists
  • Accountants

R A Valuation Services' Valuation Reports are tailor-made for their purposes, definitive and realistic in the market place. Indeed, such is their authority that an R A Valuation Services' Valuation Report is normally insisted upon in support of negotiations.