How much is it worth?

Lokolo

Thats why they're struggling to see if its all 'legal' etc.

Dominos franchise cost around £250k. My Dominos store is one of the best and will get around £400k+ a year return, however, this is after years and years of operating.

I cannot see a 'decent' franchise offering you a return on your investment in less than a year.

noctambulist

@Hungerdunger Thanks for that information I had filled out as much as I could but my browser crashed but I will wait till I get the extensive information by the weekend hopefully.

@ManAtHome I believe that the store had loans to initially pay off so I am guess that explains the variation.

@Lokolo First off congrats thats really something you got going,

Hypothetically speaking lets forget the initial offer of 25K, if any of you guys had to be approached with buying shares in Company A, what would you offer given the rough figures (I know hard to say) but just a ball park figure what would you be offering for it?

Lokolo

No for me, sounds like a scam.

[Deleted User]

Hi,

not for me either, I'd rather put the money in a spread of shares or unit trusts.

noctambulist

I really respect your guys views but for a moment just put aside the fact that it might be a scam, I would love to hear what sort of figures had it been genuine would you have paid?

debbie42

You can't expect even a ball park figure from the information you've given, I'm afraid.

purch

Because it is a Franchise, the fact that

But in relationstion to that particular company going bust all I can say its a High St mutiple so I doubt that very much

is irrellevant.

The Franchisee is operating quite seperately to the Franchisor is is paying for the use of the Franchisors name and other rights.

The Franchisee is an independant company as has to be treated as such. You can only quantify the value of the Franchise in relation to what the Franchise Fee was/is

To value the business you need to know what it's Assets and Liabilities are. The Gross Turnover is pretty irrellevant in the equation. (turning over £1million a year on a profit margin of 1% is worth far less than a turnover of £100,000 with a profit margin of 50%)

Also Gross Operating profit is less important than Nett Profit.

The 3 most important things you need to value this business are Assets, Liabilities and Nett Profit.

noctambulist

@Purch thank you thats the information I was looking for I will try and dig that put and get back to everyone. Much Appreciated.