Smuggler
Active Member
Is there a MBA/CPA on this site who knows about franchise business valuation?
I have been developing a “new technology based” franchise business over the past year. The project isn’t complete just yet but my team is nearing completion of the finished product and we are getting really excited about its market potential. We have a lock on the technology and a Chinese manufacturer under contract to produce our hardware for us.
It turns out to be the PERFECT cash/cc business franchise with unbelievable potential!
It’s the perfect franchise business because A. it’s a completely legitimate, highly profitable business and B. it’s the PERFECT cash based business for those looking for that…
There is ZERO cost of goods sold, ZERO inventory and ZERO manufacturing. Basically, there’s no invoice or payments “paper trail” because there’s no cost to operate it, other than the cost to operate the facility i.e. rent, employees, light/heat/power, insurance, etc. Just the register receipts…
The franchise owner operator can purchase their choice of two facility size options (Large or Small) solely based on customer throughput and area population saturation. Based on a 12 hour business day, the cash flow can be up to $1,440 or $2,880 per day, that’s a tic over $525,000 to 1 million in sales respectively, per year. Double that by running it 24/7. It’s literally the perfect legitimate cash based business! Multiple franchise locations can be operated for higher sales receipts.
The realistic projected expectations are about 20% capacity, as far as paying customer throughput. Basically though, with a little advertizing, the franchise can actually pay for itself in the first couple of years.
The performance metrics are pretty dynamic considering they’re for a new “cash/cc based” business idea.
There is a huge demand from a huge existing market and there is no other franchise like this one.
We are golden on patents, copyrights and domain name and I can absolutely back up everything I’m saying.
Some exciting highlights of the project:
There is an existing market of 100 million people in the US and 5 to 10 times that many globally.
There is a huge need/demand for this product from that huge market.
As the economy worsens, the more demand there is for this product.
There are no legal, moral or ethical restrictions that would allow the “City Fathers” to deny a business license.
The opportunity is global.
It’s all technology/electronics based and is a product and a service at the same time.
The equipment is inexpensive to maintain and can be operated with very little training.
The target sales prices for the franchises are $300,000 or $475,000 (including equipment) depending on the size of the franchise.
I was just hoping there was an MBA or a CPA on this site that might give me a clue about how to go about determining the valuation of a “franchise price” model based on these potential sales projections.
Questions: Is this too little or too much to sell each franchise for? Is it realistic to price the franchise based solely on projections or do we need a working franchise to draw sales/profits numbers from? I know it would be better to have real numbers but can it be done “hypothetically” without franchise earnings reports?
Sorry but no, I can’t tell anyone what it is right now, we’re just not ready to launch just yet.
Thanks, Smuggler
I have been developing a “new technology based” franchise business over the past year. The project isn’t complete just yet but my team is nearing completion of the finished product and we are getting really excited about its market potential. We have a lock on the technology and a Chinese manufacturer under contract to produce our hardware for us.
It turns out to be the PERFECT cash/cc business franchise with unbelievable potential!
It’s the perfect franchise business because A. it’s a completely legitimate, highly profitable business and B. it’s the PERFECT cash based business for those looking for that…
There is ZERO cost of goods sold, ZERO inventory and ZERO manufacturing. Basically, there’s no invoice or payments “paper trail” because there’s no cost to operate it, other than the cost to operate the facility i.e. rent, employees, light/heat/power, insurance, etc. Just the register receipts…
The franchise owner operator can purchase their choice of two facility size options (Large or Small) solely based on customer throughput and area population saturation. Based on a 12 hour business day, the cash flow can be up to $1,440 or $2,880 per day, that’s a tic over $525,000 to 1 million in sales respectively, per year. Double that by running it 24/7. It’s literally the perfect legitimate cash based business! Multiple franchise locations can be operated for higher sales receipts.
The realistic projected expectations are about 20% capacity, as far as paying customer throughput. Basically though, with a little advertizing, the franchise can actually pay for itself in the first couple of years.
The performance metrics are pretty dynamic considering they’re for a new “cash/cc based” business idea.
There is a huge demand from a huge existing market and there is no other franchise like this one.
We are golden on patents, copyrights and domain name and I can absolutely back up everything I’m saying.
Some exciting highlights of the project:
There is an existing market of 100 million people in the US and 5 to 10 times that many globally.
There is a huge need/demand for this product from that huge market.
As the economy worsens, the more demand there is for this product.
There are no legal, moral or ethical restrictions that would allow the “City Fathers” to deny a business license.
The opportunity is global.
It’s all technology/electronics based and is a product and a service at the same time.
The equipment is inexpensive to maintain and can be operated with very little training.
The target sales prices for the franchises are $300,000 or $475,000 (including equipment) depending on the size of the franchise.
I was just hoping there was an MBA or a CPA on this site that might give me a clue about how to go about determining the valuation of a “franchise price” model based on these potential sales projections.
Questions: Is this too little or too much to sell each franchise for? Is it realistic to price the franchise based solely on projections or do we need a working franchise to draw sales/profits numbers from? I know it would be better to have real numbers but can it be done “hypothetically” without franchise earnings reports?
Sorry but no, I can’t tell anyone what it is right now, we’re just not ready to launch just yet.
Thanks, Smuggler
