{"id":32967,"date":"2026-08-12T03:30:44","date_gmt":"2026-08-12T02:30:44","guid":{"rendered":"https:\/\/www.franchiselocal.co.uk\/news\/franchise-resale-valuation\/"},"modified":"2026-08-12T03:30:52","modified_gmt":"2026-08-12T02:30:52","slug":"franchise-resale-valuation","status":"publish","type":"post","link":"https:\/\/www.franchiselocal.co.uk\/news\/franchise-resale-valuation\/","title":{"rendered":"How to approach franchise resale valuation in the UK"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #101010;color:#101010\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #101010;color:#101010\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-resale-valuation\/#what-to-gather-before-you-start-valuing-a-franchise-resale\" >What to gather before you start valuing a franchise resale<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-resale-valuation\/#the-three-core-approaches-to-franchise-resale-valuation\" >The three core approaches to franchise resale valuation<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-resale-valuation\/#earnings-based-valuation\" >Earnings-based valuation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-resale-valuation\/#asset-based-valuation\" >Asset-based valuation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-resale-valuation\/#market-comparables\" >Market comparables<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-resale-valuation\/#how-to-adjust-reported-earnings-for-franchise-specifics\" >How to adjust reported earnings for franchise specifics<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-resale-valuation\/#how-lender-underwriting-shapes-the-practical-purchase-price\" >How lender underwriting shapes the practical purchase price<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-resale-valuation\/#franchise-specific-levers-that-raise-or-lower-resale-value\" >Franchise-specific levers that raise or lower resale value<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-resale-valuation\/#what-to-expect-from-the-process-fees-and-timeline\" >What to expect from the process, fees, and timeline<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-resale-valuation\/#when-should-you-bring-in-a-professional-valuer-or-adviser\" >When should you bring in a professional valuer or adviser?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-resale-valuation\/#a-worked-example-of-earnings-based-franchise-resale-valuation\" >A worked example of earnings-based franchise resale valuation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-resale-valuation\/#sources\" >Sources<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 6<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><\/p>\n<p>The most reliable way to value a franchise resale is to triangulate three methods: an earnings multiple applied to adjusted SDE or EBITDA, an asset-based floor, and market comparables from recent UK resales. As the <a href=\"https:\/\/www.thebfa.org\/expert-advice-zone\/navigating-franchise-resales-top-tips-for-buyers\/\" rel=\"nofollow noopener noreferrer\" target=\"_blank\">British Franchise Association<\/a> makes clear, the final price is ultimately what a willing buyer will pay, and competing bids can move that figure in either direction.<\/p>\n<p>Your immediate next step: gather three years of adjusted accounts, the franchise agreement showing remaining term and transfer fee, and a full list of fixed assets. Those three items are the foundation of every credible valuation.<\/p>\n<ul>\n<li><strong>Earnings-based value:<\/strong> adjusted SDE or EBITDA multiplied by a sector-appropriate factor (typically 1x\u20134x for UK franchises)<\/li>\n<li><strong>Asset floor:<\/strong> the liquidation or book value of physical assets, which sets the minimum a seller should accept<\/li>\n<li><strong>Market comparables:<\/strong> recent resale prices for similar franchises, used to calibrate the multiple up or down<\/li>\n<li><strong>Franchisor factors:<\/strong> remaining contract term, transfer fee, and approval process all affect what buyers will pay<\/li>\n<li>Franchiselocal\u2019s <a href=\"https:\/\/franchiselocal.co.uk\/news\/top-franchise-resale-opportunities-uk\" target=\"_blank\" rel=\"noopener\">resale listings<\/a> provide a practical starting point for sourcing UK comparables<\/li>\n<\/ul>\n<hr>\n<h2 id=\"what-to-gather-before-you-start-valuing-a-franchise-resale\"><span class=\"ez-toc-section\" id=\"what-to-gather-before-you-start-valuing-a-franchise-resale\"><\/span>What to gather before you start valuing a franchise resale<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A credible valuation stands or falls on the quality of the documents behind it. Lenders, buyers, and franchisors will all ask for the same core set, so assembling it early saves time and avoids last-minute gaps.<\/p>\n<p><strong>Financial documents:<\/strong><\/p>\n<ul>\n<li>Three years of filed accounts (profit and loss, balance sheet)<\/li>\n<li>Recent management accounts (ideally within the last three months)<\/li>\n<li>Detailed royalty and marketing fee schedules showing the exact percentages charged<\/li>\n<li>Any VAT returns or HMRC correspondence relevant to trading history<\/li>\n<\/ul>\n<p><strong>Operational and legal documents:<\/strong><\/p>\n<ul>\n<li>The franchise agreement, including remaining term, renewal rights, territory definitions, and transfer clauses<\/li>\n<li>Transfer fee amount and the franchisor\u2019s approval process in writing<\/li>\n<li>Lease or property details: term remaining, rent review dates, and any dilapidation obligations<\/li>\n<li>Staff contracts and an org chart showing who is employed and on what terms<\/li>\n<li>A full list of fixed assets with approximate current values<\/li>\n<\/ul>\n<p><strong>Franchisor-specific items buyers will request:<\/strong><\/p>\n<ul>\n<li>Confirmation of whether the franchisor will approve the proposed buyer<\/li>\n<li>Any outstanding obligations or disputes with the franchisor<\/li>\n<li>Renewal rights and whether renewal is at the franchisor\u2019s discretion<\/li>\n<\/ul>\n<p>According to <a href=\"https:\/\/www.franchisebusinessbrokers.co.uk\/advice\/how-to-value-a-franchise-business-before-a-potential-sale\/\" rel=\"nofollow noopener noreferrer\" target=\"_blank\">Franchise Business Brokers<\/a>, an independent valuation covering at least three years of accounts, assets, and non-financial factors is the standard lenders expect and the format that eases negotiation with buyers.<\/p>\n<p><strong>Pro Tip:<\/strong> <em>Reconcile owner drawings before you share any figures. Show adjusted profit with clearly documented add-backs \u2014 owner salary, personal expenses run through the business, and one-off costs. Buyers and lenders will apply their own adjustments if you do not, and theirs will almost always be more conservative than yours.<\/em><\/p>\n<hr>\n<p><img decoding=\"async\" src=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2026\/08\/1786265719296_What-to-gather-before-you-start-valuing-a-franchise-resale-overview-diagram.webp\" alt=\"What to gather before you start valuing a franchise resale \u2014 overview diagram\" title=\"\"><\/p>\n<h2 id=\"the-three-core-approaches-to-franchise-resale-valuation\"><span class=\"ez-toc-section\" id=\"the-three-core-approaches-to-franchise-resale-valuation\"><\/span>The three core approaches to franchise resale valuation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>BFA guidance recommends starting from adjusted maintainable profit and applying a multiple, then cross-checking with asset value and comparable sales. No single method gives the full picture.<\/p>\n<h3 id=\"earnings-based-valuation\"><span class=\"ez-toc-section\" id=\"earnings-based-valuation\"><\/span>Earnings-based valuation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This is the primary method for most UK franchise resales. Calculate adjusted SDE (Seller\u2019s Discretionary Earnings) or EBITDA, then apply a multiple. The multiple reflects the risk profile of the business: a stable, growing franchise with strong franchisor support commands a higher multiple than one with declining revenue or a short remaining term.<\/p>\n<p><strong>Typical UK multiplier ranges by scenario:<\/strong><\/p>\n<table>\n<thead>\n<tr>\n<th>Scenario<\/th>\n<th>Typical multiplier<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Declining revenue, short term remaining<\/td>\n<td>1x SDE<\/td>\n<\/tr>\n<tr>\n<td>Stable revenue, average franchisor support<\/td>\n<td>2x\u20133x SDE<\/td>\n<\/tr>\n<tr>\n<td>Growing revenue, strong brand, long term<\/td>\n<td>3x\u20134x SDE<\/td>\n<\/tr>\n<tr>\n<td>Exceptional performance, prime territory<\/td>\n<td>Up to 4x+ SDE<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><img decoding=\"async\" src=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2026\/08\/1786265585713_Bar-chart-comparing-franchise-valuation-multipliers.webp\" alt=\"Bar chart comparing franchise valuation multipliers\" title=\"\"><\/p>\n<h3 id=\"asset-based-valuation\"><span class=\"ez-toc-section\" id=\"asset-based-valuation\"><\/span>Asset-based valuation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Book value or liquidation value sets the floor. For asset-heavy franchises such as vehicle-based or equipment-intensive operations, the asset floor can be close to or even exceed the earnings-based figure. It prevents a seller from accepting less than the tangible value of what they own. <a href=\"https:\/\/nomora.io\/blog\/franchise-vehicle-rental-benefits-costs-strategies\" target=\"_blank\" rel=\"noopener\">Nomora\u2019s analysis of franchise vehicle costs<\/a> illustrates how fleet and equipment values can represent a meaningful portion of total resale value for mobile franchises.<\/p>\n<h3 id=\"market-comparables\"><span class=\"ez-toc-section\" id=\"market-comparables\"><\/span>Market comparables<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Xero\u2019s UK business valuation guide recommends using recent, sector- and location-close sales alongside other methods. Apply the sale multiples from those transactions to your adjusted earnings figure to see whether your earnings-based estimate sits within the market range.<\/p>\n<p><strong>Pro Tip:<\/strong> <em>When sourcing comparables, weight recent sales (within 18 months) more heavily than older ones. Franchise resale markets shift with interest rates and consumer confidence, so a 2021 multiple may not reflect what buyers will pay today.<\/em><\/p>\n<hr>\n<h3 id=\"how-to-adjust-reported-earnings-for-franchise-specifics\"><span class=\"ez-toc-section\" id=\"how-to-adjust-reported-earnings-for-franchise-specifics\"><\/span>How to adjust reported earnings for franchise specifics<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Reported net profit rarely reflects what a new owner will actually earn. The adjustments below convert it into a maintainable earnings figure that buyers and lenders will accept.<\/p>\n<p><strong>Common add-backs (items that increase adjusted profit):<\/strong><\/p>\n<ul>\n<li>Owner salary and discretionary drawings above a market-rate replacement cost<\/li>\n<li>One-off repairs or capital expenditure unlikely to recur<\/li>\n<li>Personal expenses run through the business (mobile phones, vehicles, travel)<\/li>\n<li>Non-recurring professional fees (litigation, one-off consultancy)<\/li>\n<li>Related-party transactions at non-market rates<\/li>\n<\/ul>\n<p><strong>Adjustments that reduce profit:<\/strong><\/p>\n<ul>\n<li>Any owner benefit that a new owner would need to replace with paid staff<\/li>\n<li>Deferred maintenance costs that will fall due after sale<\/li>\n<\/ul>\n<p>Royalties and marketing levies are never added back. As <a href=\"https:\/\/buyabusinessltd.com\/knowledge-centre\/how-to-buy-or-sell-a-franchise-in-the-uk\" rel=\"nofollow noopener noreferrer\" target=\"_blank\">Buy a Business<\/a> notes, franchise resales are modelled on adjusted maintainable profit <em>after<\/em> franchisor fees. A buyer inherits those costs on day one.<\/p>\n<p><strong>Adjusted SDE formula:<\/strong><br \/>\nReported net profit + owner benefit + selected add-backs = <strong>Adjusted SDE<\/strong><br \/>\nAdjusted SDE \u00d7 chosen multiple = <strong>Indicative earnings-based value<\/strong><\/p>\n<blockquote>\n<p><strong>Statistic callout:<\/strong> UK franchise multipliers commonly range within a factor usually applied to adjusted SDE or EBITDA, with stable franchises typically attracting a moderate multiple according to BFA industry guidance.<\/p>\n<\/blockquote>\n<hr>\n<h2 id=\"how-lender-underwriting-shapes-the-practical-purchase-price\"><span class=\"ez-toc-section\" id=\"how-lender-underwriting-shapes-the-practical-purchase-price\"><\/span>How lender underwriting shapes the practical purchase price<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A valuation tells you what a business is worth. Debt serviceability tells you what a buyer can actually afford to pay for it. The two figures often differ, and the lower one usually wins.<\/p>\n<p>Lenders assess the post-royalty cash flow remaining after all franchisor costs to determine how much debt the business can support. That figure, divided by the required debt-service coverage ratio, sets the maximum loan. Add the buyer\u2019s deposit, and you have the effective price ceiling. BFA guidance on franchise resales explicitly flags debt serviceability as a critical constraint on what buyers can pay.<\/p>\n<p>The key inputs lenders model:<\/p>\n<ul>\n<li>Maintainable net cash flow after royalties and marketing contributions<\/li>\n<li>Prevailing interest rate and loan term (typically 5\u20137 years for franchise lending)<\/li>\n<li>Required personal income for the buyer\u2019s living costs<\/li>\n<li>Loan-to-value ratio the lender will accept (often 50%\u201370% for franchise purchases)<\/li>\n<\/ul>\n<p><strong>Pro Tip:<\/strong> <em>Build a simple annual debt-service schedule before you set an asking price. Divide the projected loan by 12, add interest, and check whether the monthly payment leaves the buyer with enough post-debt cash flow to live on. If it does not, the asking price is too high for most buyers to finance, regardless of what the earnings multiple says.<\/em><\/p>\n<p>For buyers exploring <a href=\"https:\/\/surge-financial.com\/industries\/restaurants\" target=\"_blank\" rel=\"noopener\">franchise finance options<\/a>, modelling this schedule early avoids wasted time on deals that cannot be funded.<\/p>\n<hr>\n<h2 id=\"franchise-specific-levers-that-raise-or-lower-resale-value\"><span class=\"ez-toc-section\" id=\"franchise-specific-levers-that-raise-or-lower-resale-value\"><\/span>Franchise-specific levers that raise or lower resale value<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Beyond the numbers, several franchise-specific factors shift the multiple a buyer will apply.<\/p>\n<ul>\n<li><strong>Contract term:<\/strong> A remaining term of five years or more with clear renewal rights supports a full multiple. A term of one to two years without guaranteed renewal materially reduces saleability, as the BFA notes in its resale buyer guidance.<\/li>\n<li><strong>Territory quality:<\/strong> A large, exclusive territory in a high-density area commands a premium. Overlapping or shrinking territories reduce buyer confidence.<\/li>\n<li><strong>Franchisor support and brand strength:<\/strong> Documented training programmes, a strong national brand, and a franchisor with a track record of supporting resales all reduce buyer risk and justify a higher multiple.<\/li>\n<li><strong>Owner dependency:<\/strong> A business that only works because of the current owner\u2019s personal relationships or skills attracts a discount. Buyers cannot be confident the revenue will transfer.<\/li>\n<\/ul>\n<p>Sellers who codify procedures, create staff manuals, and demonstrate a management team willing to stay after sale materially improve buyer confidence and the achievable multiple, according to BFA resale guidance. Reviewing your <a href=\"https:\/\/franchiselocal.co.uk\/news\/how-to-assess-franchise-risk-a-uk-investors-guide\" target=\"_blank\" rel=\"noopener\">franchise risk profile<\/a> before listing is a practical way to identify and address these discount factors early.<\/p>\n<p><strong>Pro Tip:<\/strong> <em>Start reducing owner dependency at least 12 months before you plan to sell. Document every process, delegate client relationships to staff, and ensure the business runs for at least one month without your direct involvement. That evidence alone can shift a buyer\u2019s multiple by half a point.<\/em><\/p>\n<hr>\n<h2 id=\"what-to-expect-from-the-process-fees-and-timeline\"><span class=\"ez-toc-section\" id=\"what-to-expect-from-the-process-fees-and-timeline\"><\/span>What to expect from the process, fees, and timeline<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A UK franchise resale typically follows these steps: valuation, marketing and listing, buyer identification, franchisor approval, due diligence, and exchange and completion. Timeframes vary. Fees for independent valuers depend on complexity, broker commissions typically amount to a percentage of the sale price, legal fees cover both sides, and franchisor transfer fees vary by brand and are usually paid by the seller, though this can be negotiable.<\/p>\n<p>Presenting clear financial projections and explaining the franchisor\u2019s transfer process reduces buyer risk and helps preserve value, as Azibiz\u2019s UK valuation guide advises.<\/p>\n<hr>\n<h2 id=\"when-should-you-bring-in-a-professional-valuer-or-adviser\"><span class=\"ez-toc-section\" id=\"when-should-you-bring-in-a-professional-valuer-or-adviser\"><\/span>When should you bring in a professional valuer or adviser?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>DIY valuation works for straightforward resales with clean accounts and a simple lease. Bring in a professional when any of the following apply:<\/p>\n<ul>\n<li>The business has a significant leasehold or freehold property component<\/li>\n<li>Goodwill forms the majority of the asking price and needs independent support<\/li>\n<li>You need a lender-acceptable valuation report<\/li>\n<li>Accounts are disputed, incomplete, or show unusual patterns<\/li>\n<li>The deal involves an earn-out or deferred consideration structure<\/li>\n<\/ul>\n<p><strong>Selection checklist for advisers:<\/strong><\/p>\n<ul>\n<li>Chartered accountancy qualification (ICAEW, ACCA, or ICAS) or a recognised valuation credential (RICS for property-heavy franchises)<\/li>\n<li>Demonstrable franchise resale experience, not just general business sales<\/li>\n<li>References from a franchisor or recent resale clients<\/li>\n<li>Clear methodology: ask how they source comparables, how they treat royalties in their model, and whether their report format is accepted by high-street franchise lenders<\/li>\n<\/ul>\n<hr>\n<h2 id=\"a-worked-example-of-earnings-based-franchise-resale-valuation\"><span class=\"ez-toc-section\" id=\"a-worked-example-of-earnings-based-franchise-resale-valuation\"><\/span>A worked example of earnings-based franchise resale valuation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This is an illustrative example. Exact results depend on verified accounts and the specific terms of your franchise agreement.<\/p>\n<ol>\n<li><strong>Reported net profit:<\/strong> \u00a342,000<\/li>\n<li><strong>Add back owner salary above market rate:<\/strong> \u00a318,000 (owner pays themselves \u00a348,000; market-rate manager costs \u00a330,000)<\/li>\n<li><strong>Add back one-off repair:<\/strong> \u00a34,000<\/li>\n<li><strong>Add back personal mobile and vehicle:<\/strong> \u00a32,500<\/li>\n<li><strong>Adjusted SDE:<\/strong> \u00a342,000 + \u00a318,000 + \u00a34,000 + \u00a32,500 = <strong>\u00a366,500<\/strong><\/li>\n<li><strong>Apply a 2.5x multiple<\/strong> (stable revenue, mid-range franchisor support): \u00a366,500 \u00d7 2.5 = <strong>\u00a3166,250<\/strong><\/li>\n<li><strong>Check asset floor:<\/strong> fixed assets at liquidation value = \u00a335,000. The earnings-based figure exceeds this, so the floor does not bind.<\/li>\n<li><strong>Lender affordability check:<\/strong> at 6% interest over 6 years on a \u00a3120,000 loan (buyer contributes \u00a346,250 deposit), monthly debt service is approximately \u00a31,990. Post-debt cash flow from adjusted SDE: \u00a366,500 \u00f7 12 = \u00a35,542 per month, leaving \u00a33,552 after debt service. This passes a standard lender stress test.<\/li>\n<\/ol>\n<blockquote>\n<p><strong>Indicative asking price range: \u00a3155,000\u2013\u00a3175,000<\/strong>, subject to comparable sales and franchisor transfer fee.<\/p>\n<\/blockquote>\n<hr>\n<h2 id=\"sources\"><span class=\"ez-toc-section\" id=\"sources\"><\/span>Sources<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Trusted sources for franchise resale valuation in the UK:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/www.thebfa.org\/expert-advice-zone\/navigating-franchise-resales-top-tips-for-buyers\/\" rel=\"nofollow noopener noreferrer\" target=\"_blank\">Navigating Franchise Resales: Top Tips for Buyers\u00a0 \u2013 British Franchise Association<\/a><\/li>\n<li><a href=\"https:\/\/www.franchisebusinessbrokers.co.uk\/advice\/how-to-value-a-franchise-business-before-a-potential-sale\/\" rel=\"nofollow noopener noreferrer\" target=\"_blank\">How to value a franchise business before a potential sale<\/a><\/li>\n<li><a href=\"https:\/\/buyabusinessltd.com\/knowledge-centre\/how-to-buy-or-sell-a-franchise-in-the-uk\" rel=\"nofollow noopener noreferrer\" target=\"_blank\">How to Buy or Sell a Franchise in the UK | Buy a Business<\/a><\/li>\n<\/ul>\n<p><strong>Your next step:<\/strong> if your accounts are clean and the franchise agreement is straightforward, prepare your adjusted SDE figure using the add-backs above and run the worked example with your own numbers. If the deal involves a significant property element, disputed accounts, or a large goodwill component, book an independent valuation before you set an asking price or make an offer.<\/p>\n<p>Browse <a href=\"https:\/\/franchiselocal.co.uk\/industries\/financial-business-franchises\" target=\"_blank\" rel=\"noopener\">financial business franchises for sale<\/a> on Franchiselocal to see current market pricing and identify sector comparables for your valuation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Discover effective strategies for valuing franchise resales in the UK. Learn how to accurately assess earnings, assets, and market trends.<\/p>\n","protected":false},"author":8,"featured_media":32968,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[29],"tags":[],"class_list":["post-32967","post","type-post","status-publish","format-standard","has-post-thumbnail","category-tips-advice"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2026\/08\/1786265054632_Hands-adjusting-financial-papers-on-office-desk.webp","_links":{"self":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/32967","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/comments?post=32967"}],"version-history":[{"count":1,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/32967\/revisions"}],"predecessor-version":[{"id":32971,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/32967\/revisions\/32971"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media\/32968"}],"wp:attachment":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media?parent=32967"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/categories?post=32967"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/tags?post=32967"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}