Question
You are considering selling your franchise business (restaurant). You have been a franchisee with this restaurant chain for a total of 3 years. Your 3-year
You are considering selling your franchise business (restaurant). You have been a franchisee with this restaurant chain for a total of 3 years. Your 3-year sales and profits have been: Year 1: $150,000 in sales (profit of $15,000), Year 2: $300,000 in sales (profit of $30,000), and Year 3:$500,000 (profit of $50,000).
A: According to standard business principles as covered during the lecture on Franchise Marketing the range, in dollars, in which you could list your restaurant for sale would be:
B. Based upon the above sales growth over the most recent 3 years, what specific dollar price would you list your restaurant for?
C. Based upon the following: A) initial start-up costs of $250,000, B)above 3-year total sales and profits, and C) your achieved sales price from "B" above, what is your OVERALL profit after 3 years revenue/profits and your sale price?
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Please make an illustration or assumption to answer the question if some information is not provided.
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