[Educational Franchise Strategy] Franchising, how to calculate how much the brand is worth?

Education center franchise, franchising,

Refers to a number of individual shop operators throughguidance,operate the same brand.

Operators can quickly acquire business knowledge and reduce startup time.

Among them, how much the brand is worth determines the franchise fee receivable by the head office.

This article describes three of the simplest estimation methods.

(1) Duan Jinscales

The total value of advertising, marketing, human resources, etc. that the brand has put in the past.

For example, assuming that Feiteng Education started in 2007 and put 1 million online advertisements for branding every year,

By 2017, the brand valuation is 1 million x 10 years = 10 million.


This method is simple and crude, because Feiteng Music's total investment of 10 million is not necessarily the most efficient.

10 million in exchange may only be less than 1 million efficiency.

Conversely, brand value may also be underestimated,

Because 10 million may generate the efficiency of 100 million invested by other companies.

Moreover, this method is based on cost, and the brand's great value lies in future expectations, not past history.


However, this can give prospective franchise operators a basic concept,

A more extreme example, a brand that has not invested enough 100,000 yuan, but charges 100,000 yuan for the franchise fee,

We will think: Is it reasonable to join this brand?

(2) Cut off the heavy practice trick

Starting today, how much capital do you need to re-establish a Feiteng Education brand?

If it is 1 million, then the brand of Feiteng Music (Goodview) is worth 1 million.




This approach is also cost-driven and fails to reflect expectations for the future.

Also, there is very little possibility of recreating an identical brand to compare,

The value of a brand lies in its uniqueness, which is difficult to compare.


However, this can give prospective franchise operators a basic concept,

That is, in Management Accounting,

Which is better buy or make decisions?

(3) There is no comparison, no harm method

A product with a brand name and an unprinted selling price.

For example, a smart phone sells for 1,000 yuan on Taobao.

The phone, with the Apple Logo, can sell for 10,000 yuan.

The company sells 100 products a year.

The brand valuation is the difference (9,000 yuan x 100 = 900,000)

Of course, the calculation method needs to include the brand's market share, repeat purchase rate, future growth rate, and so on.



This method is more accurate, but requires a lot of market data.

Moreover, there are many factors that affect the selling price of products, such as market demand, parts supply, economic cycle, etc., and brand is only one of them.


However, this can give prospective franchise operators a basic concept,

"with you or without youIs there a difference?


Extended reading (3) Requirements for joining Feiteng Music

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