Valuing your Franchise
If you are using a business broker, they can appraise your franchise. Business brokers don’t value franchisees as such. If you need a professional valuation you can get this from your accountant or from a valuer.
Whatever the valuation, it's wise to look at a value you are happy with. Whoever does a valuation for you will explain how they arrived at the price. Accountants will value your franchise based on financial results and other details of the company. They will use standard formula's to calculate a figure and then compare that figure with a personal assessment of the franchise, based on their knowledge. At the end of the day, the value has to be agreeable to you, so your accountant will explain how the figures were arrived at, to see if you agree.
Valuing Goodwill
The value of any business includes an amount for goodwill. Goodwill is regarded as the difference between the value asked for and the actual value of the assets of the business. Goodwill includes the value of such things as the company name, reputation, intellectual ...
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