Franchise Relation

It is common that franchise value is arrived at by applying a multiple to the Company’s normalized net income. Determining this multiple is somewhat subjective. There are industry publications that examine factors that determine what multiples should be for various franchises. These publications, such as the The Blue Sky Report published by Kerrigan Advisors and the Haig Report can be used as a starting point in determining a multiple. The reports indicate that luxury franchises generally demand a higher multiple than non-luxury franchises.