I am considering buying a franchise. What is a reasonable multiple of sales/profits I should expect to pay?



I have 2-3 times the sales, I have heard 5 times profits. Any suggestions from finance types on what a reasonable multiple to pay is?

2 Responses to “I am considering buying a franchise. What is a reasonable multiple of sales/profits I should expect to pay?”

  1. Sales and profit is two different things. Can’t combine the two. One you pay sales tax the other pay income tax.. Write the question over and tell us what the francise May be we can help more than I have. The francise payment can wait . If they want money on monday — think you better slow down. Did you read the litature???

  2. hi, yes 4 to 5 time profits. But, hard work and a lot time spent on this kind of business. check this out..www.roysummers.yournewfortune.com Listen to Audio.

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