What FRANdata Thinks

Appraising Personal Service Franchises in Today’s Market

September 8th, 2021 by Melinda Modica

By Steve Mize of GCF Valuation

Last year we wrote an article on how to value a “personal service” franchise. In the original article we discussed some of the concerns being a continued decline in revenue trends for this industry due to competition and overall saturation in the market, but more importantly the reliance on “cash flow”. 

Fast forward 12 months… 

COVID has put an absolute halt on business acquisitions in this segment of the industry. GCF Valued 7 Massage Envy / Hand & Stone / European Wax franchises in 2019 and zero in 2020 or 2021 (for acquisitions). The only valuation that was performed for one of these franchises was for a divorce. Most of these businesses were significantly impacted by COVID with many not return to “normalization” as of the first quarter of 2021. 

Tale of Two Years 

For the valuation we did on a recent “massage franchise”, we actually did the valuation for acquisition in 2019. To see more on the market approach that was used and the rest of the article, click below.


Click here to download the full article


About Steve Mize

A trusted FRANdata valuation partner; Steve Mize is the founder and Partner at GCF Valuation, the nation’s leading provider of SBA-compliant valuations.  Over the years, Steve has accumulated broad experience in the valuation field, including fairness opinions, mergers and acquisitions, feasibility analyses, strategic planning, and providing expert witness testimony. Additionally, in response to market needs, Steve pioneered small business solutions like BankerValuation, Peercomps, and FinVal, further improving his client’s ability to deliver accurate assessments. You can email Steve at smize@gvalue.com.

About GCF Valuation

GCF Valuation is the leading provider of SBA-compliant business valuations and appraisals. Unlike many of our competitors, we don’t automate or shortcut the process. Instead, we put a team of fully accredited experts on every project. As a result, we deliver some of the most thorough appraisals in the business—valuations that will stand up to tough scrutiny. Click here for more information.

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