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Fast Food Restaurant Business Valuation Formulas:

Valuing Fast Food Restaurants: This is a general business valuation formula or pricing method for established fast food restaurants and franchises based on a percentage of annual gross revenues that can be used to help determine an approximate value and asking price to market an existing fast food restaurant for sale.

Fast Food Restaurants & Franchises:  Approximately 35 to 40% of annual gross sales + inventory.

Broker Comments: It’s been my experience as a Arizona business broker for over 12 years that very well established (5 + years) fast food restaurants that are easy to operate, have serious brand recognition (Subway), have a manager in place, and a great location tend to attract the most attention and support the highest valuations. The biggest challenge and negative issue I encounter is that most major metro markets like Phoenix are oversaturated with fast food businesses and franchises that are marginal performers because of intense competition and poor locations. Unfortunately many of these businesses never survive over 5 years.

Need a business valuation or appraisal report for legal, personal, or selling purposes? Request a free & confidential  consultation about your established fast food business here.