Franchise valuation methods play a crucial role in accurately determining the appropriate price for a franchise. The Income-Based Method assesses projected cash flows to calculate value. The Market-Based Method compares the franchise to similar ones, considering recent sales and industry trends. The Asset-Based Method evaluates tangible and intangible assets. Combining these methods provides a comprehensive perspective. Selecting the appropriate method depends on the franchise's nature, industry, and available data. Accurate valuation is essential for both franchisors and potential investors, aiding in informed decision-making and ensuring fair pricing that reflects the franchise's true worth in the market.
