If you are considering entering the world of franchising in New York, an important consideration is assessing the value of the business. All of the following factors either affect or help determine valuations of typical franchise operations in New York: 1. Franchise Agreements: Typically, franchise agreements cover a period of twenty years; sometimes with added options. In situations where a franchise unit has fewer than ten years lefton the agreement (and options, if any), the value would diminish proportionately. 2. Territory Exclusivity: Many franchisors do not provide an "exclusive" to franchisees within a given territory. More commonly, the franchisor will offer a franchisee limited protection for five years, during which time only he or she will be allowed to expand operation to additional units. Even limited protection can be assigned some value.  Any current territorial rights may have additional -- and significant -- value. 3. Business Hours Potential franchisees should consid ...

A recent survey revealed the following about the length of time that selling an average business requires: Time Period % of Businesses Sold in This Time Period  1 to 3 Months 9.7 %  4 to 6 Months 28.3%  7 to 9 Months 38.0% 10 to 12 Months 15.9%  13 to 18 Months 7.6% 19 + Months 0.7% It took from four to 12 months to sell approximately 82% of businesses, with 38% percent falling into the seven- to nine-month range. Of course, some businesses sell more quickly (even in New York), but at the other end of the spectrum, over 8% are on the market for over 12 months.  Why does it take so long to sell a business?  In general, price and ter ...