Topic: Family Businesses

Subject: Evaluation of Franchisee's investment returns
Ann Sharber
Member: 2001
Posts:1
Submitted on 03-15-11 2:25 pm
Message:
I am considering investment in a small business and have opportunity to purchase a book of business with 20% gross margin at 2 times GM. Since there is 5% royalty to be paid on gross sales, I question the ROI for this purchase. Is there a rule of thumb?
Ann Sharber 214-728-8817
 
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Replies
Dan Wallace
Member: 2009
Posts: 70

Subject: Re:Evaluation of Franchisee's investment returns

Submitted on 03-21-11 8:52 pm.
Message:
Ann- What type of business? I have a somewhat dated (2007) reference guide with rules of thumb and benchmark information.
 
Tim Anglim
Member: 2002
Posts: 4

Subject: Re:Evaluation of Franchisee's investment returns

Submitted on 04-19-11 3:30 pm.
Message:
Ann,

How did your search for Franchise information work out?

Tim Anglim
 
Keith Langworthy
Member: 2002
Posts: 3

Subject: Re:Evaluation of Franchisee's investment returns

Submitted on 03-26-12 9:53 am.
Message:
Did you get an answer to your question?
 
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