Retail · NAICS 722513

Franchise Restaurant Valuation Multiples (2026)

Franchise restaurant valuations track AUV, brand strength, and remodel requirements. Top-5 brand multi-unit operators with no near-term remodel reach 0.7× revenue and 4.5× EBITDA.

SDE multiple
2.5×
2–3.2×
EBITDA multiple
3.5×
2.8–4.5×
Revenue multiple
0.5×
0.35–0.7×

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Industry: Franchise Restaurant · Retail

Premium drivers

  • ↑Strong national franchise brand (top 5 QSR / fast casual)
  • ↑Multi-unit territory rights
  • ↑Recent remodel / new-build asset
  • ↑Long-term lease in high-traffic location

Discount drivers

  • ↓Required remodel within 24 months
  • ↓Lease ending in < 5 years
  • ↓Underperforming AUV vs system avg
  • ↓Royalty + ad fund > 11%

Who buys franchise restaurant?

Multi-unit franchisee, PE-backed restaurant group, or operator buyer

Typical timeline + revenue band

  • Days to close: 90–180
  • Revenue band these multiples apply to: $500K–$3.00M
  • NAICS: 722513 (Retail)

5 levers that lift your Franchise Restaurant multiple by 30-50%

  1. 1
    Lock in recurring revenue
    Convert the top of your franchise restaurant revenue stack into multi-year contracts, retainers, or auto-renewing subscriptions. Buyers pay 25-40% more for revenue they don't have to re-win every quarter.
  2. 2
    De-risk customer concentration
    Aim for no single customer above 15% of revenue. If you have a > 25% client, get them on a multi-year master services agreement before going to market.
  3. 3
    Document the business out of the owner
    Multi-unit franchisee, PE-backed restaurant group, or operator buyer will discount aggressively for any function that lives in the owner's head — sales, key vendor relationships, pricing, hiring. Run the next 90 days like the owner is on a 6-week vacation.
  4. 4
    Clean up the financials
    Get a Quality of Earnings-ready trailing 12 months: GAAP-aligned, owner add-backs documented, no commingled personal expenses. This alone moves the multiple 0.5-1.0× upward in this category.
  5. 5
    Match the deal to the right buyer pool
    PE-backed roll-ups, strategic acquirers, and ETA buyers compete on different terms. List with someone who has run a process for franchise restaurant acquisitions — generic SMB brokers will leave 20%+ on the table.
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Personalized Franchise Restaurant valuation, action plan, and ideal-buyer profile.

FAQ — Franchise Restaurant valuations

What's a typical franchise restaurant valuation multiple?▾

Typical franchise restaurant valuations land near 2.5× SDE, 3.5× EBITDA, or 0.5× revenue. Strong operators reach 3.2× SDE / 4.5× EBITDA / 0.7× revenue, while weaker operators stay closer to 2× SDE / 2.8× EBITDA / 0.35× revenue.

How long does it take to sell a franchise restaurant?▾

Most franchise restaurant deals close in 90–180 days from listing. Strong operators with clean financials and a documented buyer pool close on the lower end.

Who buys a franchise restaurant business?▾

Multi-unit franchisee, PE-backed restaurant group, or operator buyer

What pushes a franchise restaurant valuation to the high end?▾

Strong national franchise brand (top 5 QSR / fast casual). Multi-unit territory rights. Recent remodel / new-build asset. Long-term lease in high-traffic location.

What forces a discount when selling a franchise restaurant?▾

Required remodel within 24 months. Lease ending in < 5 years. Underperforming AUV vs system avg. Royalty + ad fund > 11%.

Other Retail categories

Independent Restaurant
1.8× SDE · 2.8× EBITDA
Specialty Retail
2× SDE · 3× EBITDA
Convenience Store / Gas Station
2.5× SDE · 3.5× EBITDA
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