(Topic ID: 199230)

Got an offer to sell my route.... How much is it worth?

By Okarcades

6 years ago


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  • 76 posts
  • 45 Pinsiders participating
  • Latest reply 5 years ago by LTG
  • Topic is favorited by 7 Pinsiders

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    #50 6 years ago

    Hello everyone. If I may. Selling a route? Industry standard is 1 and a half times earnings. Which means one and a half years of net revenue is usually the sale amount. At 900 net monthly puts you at 16,200.00 plus fair market value on the equipment. Estimate because tbey are routed pins at 27,000 Total price puts it at 43,200.00 This May vary from time to time depending on the term of the location agreement or if any at all. The most important thing is what your location agreement says. How long is left on that agreement? What is your split and your responsibilities?

    I will give you two examples of why selling price may vary. Imagine you sell this agreement and the location owner wants to change up a few things. He decides to put in more tables and remove the pins. Then what if you have no location agreement the new operator will be in a bad position.

    Now this scenario say the location wants to keep pins in their place but wants the operator to invest and put in 5 brand new pins and remove the old ones. Again you see how this would affect the new operator.

    If you have a long term agreement and it is worded in the best intrest of the operator you have something more valuable.

    I hope this helps.

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