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 Placing a value on an existing restuarant

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Revel

  • Total Posts: 22
  • Joined: 11/9/2012
  • Location: Fargo, ND
Placing a value on an existing restuarant Fri, 04/19/13 10:48 AM (permalink)
I am looking to purchase an existing quick service sandwich shop (it is currently a franchise). The location is leased, and I do NOT have any plans to keep the current franchise. My plan is to use the existing layout, equipment, etc. to operate my own concept.
 
The big question I have is; how do I place a fair value on the restaurant? I've already placed a value on the equipment, but I can admit there is value in the location, securing the lease, fit up, ect. I'm just not sure how to evaluate that.
 
The franchise restaurant currently operating in this locations is barley breaking even, after payroll, franchise fees, lease/rent, food costs, etc. I have confirmed the lease rate/terms with the building owner, and I have also confirmed with the current restaurant owner that there is no obligation to the franchise.
 
Any help/guidance is appreciated. Thank you in advance.
 
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