Franchise Valuation

In a breach of contract case involving a national restaurant chain, Cornerstone Research assisted counsel for the plaintiffs, two potential franchisees, in valuing damages based on their claimed contractual share of the franchise.

In a breach of contract case involving a national restaurant chain, Cornerstone Research assisted counsel for the plaintiffs, two potential franchisees, in valuing damages based on their claimed contractual share of the franchise. Cornerstone Research assessed the value of a regional restaurant franchise by performing discounted cash flow and comparable transaction analyses. We also analyzed defense experts’ damages calculations, showing them to contain fundamental errors that substantially understated damages. The case went to arbitration, where our clients were awarded substantial damages.