Appraisal of Franchises Requires the Use of Unique Valuation Procedures

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Appraisers operate on the presumption that, however different the individual business is from all others, businesses within a specific industry nonetheless share certain characteristics that make it possible to compare one to another and thus derive a value.

Franchise operations, however, are a breed unto themselves, and this makes the valuation of these enterprises a unique process.

The chief reason for this is the fact that the relationship between franchisors and franchisees is a unique business partnership in which each party owns and derives value from different forms of property.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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