Multiples for Wholly Owned Entities vs Franchises

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July 31, 2024

by a searcher from New York University - Leonard N. Stern School of Business in New York, NY, USA

How much do EBITDA multiples change between independent entities vs franchises?

Let's assume two companies have identical financial performance and operate in the same location in the same industry, but one is independent and the other is a franchise. In your experience, how does this impact multiples?

I assume that franchises would have lower multiples given you are confined in some aspects by the franchisor (limited territory)

For this example, let's exclude all food service franchises. Thanks for your help!

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Reply by a professional
from Oregon State University in Kuna, ID, USA
If you'd like to IM me, I can point you in the right direction for navigating this type of analysis in DealStats.
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Reply by an admin
from Massachusetts Institute of Technology in Portland, OR, USA
^redacted‌ have previously commented on Multiples and might be able to share their insights with you here.

If anyone else has questions about Multiples, or related topics, please post them and I'll do my best to get them answered for you.
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