Tom Spadea’s article, “3 Reasons Why Franchise Systems Are So Valuable” was recently featured on Entrepreneur.com. Here’s an excerpt:
Over the last decade, franchise systems have been selling to private equity buyers at higher and higher valuations. In fact, not only have more mature systems been changing hands, but each year it seems buyers will not only seek out smaller systems, but place values on these less mature brands that were unheard of previously. Across a few recessions, a global pandemic and general economic uncertainty the growth in valuation continues unabated. Why?
In my opinion, there are three primary value drivers for franchise systems: potential, time and scarcity.