---
title: "Franchise Businesses Sell At Higher Price Point"
url: https://burnaze.com/article/dac55ea3-0f1a-43d0-8853-a20189601c6a
source: "Franchising.com"
original_url: https://www.franchising.com/articles/franchise_businesses_sell_at_higher_price_point.html
author: "Multi-Unit Franchisee"
category: "Franchise Industry"
industry: "Franchise Industry"
topics: ["Finance & M&A"]
published: 2021-05-26T10:00:00.000Z
modified: 2026-11-01T01:44:34.037Z
image: https://imgs.franchising.com/art/articles/5996_plate.jpg
---

# Franchise Businesses Sell At Higher Price Point

**TL;DR:** Franchise businesses sell at a 1.5 times higher price point than non-franchise businesses, according to a study from Palm Beach Atlantic University's Rinker School of Business. The study found that small businesses in the food/restaurant category sold at a .5 times higher price than other personal and professional small business categories.

*By Multi-Unit Franchisee, originally published in Franchising.com on 2021-05-26. [Read the original](https://www.franchising.com/articles/franchise_businesses_sell_at_higher_price_point.html).*

## Story

When it comes to resale value, franchises beat non-franchise businesses, according to a new study from Palm Beach Atlantic University’s (PBA) Rinker School of Business.

After examining 2,159 business resales over a ten year period, the researchers found that franchise businesses sold at a 1.5 times higher price than non-franchise businesses. In addition, small businesses in the food/restaurant category sold at a .5 times higher price than other personal and professional small business categories.

“Our research supports the value of a franchise branded business,” said Dr. John P. Hayes, director of PBA’s Titus Center for Franchising. “If two people operate the same type of business over a period of years and enjoy similar sales, the franchise business is more likely to sell at a higher price point. Business owners ought to be aware of that information in advance of launching a business.”

The study titled “Determinants Impacting Resale Premium Disparity when Selling a Small Business: A predictive Non-Linear Approach,” will be published in the Fall 2021 issue of the “Journal of Business and Economic Studies.”

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## Entities

- Franchising.com (publication)
- Franchise Industry (sector)
- Multi-Unit (company)
- Multi-Unit Franchisee (person)
- franchise sales (topic)
- Titus Center for Franchising (company)
- business valuation (topic)
- resale value (topic)

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Originally reported by Multi-Unit Franchisee, Franchising.com (https://www.franchising.com/articles/franchise_businesses_sell_at_higher_price_point.html). Summarized by Burnaze (https://burnaze.com/article/dac55ea3-0f1a-43d0-8853-a20189601c6a).
