Owner’s equity refers to the portion of a business’s value that belongs to the owner after all liabilities have been deducted from the assets. In franchising, it’s an important metric for both franchisees and franchisors, as it indicates the financial health of the franchise. Owner’s equity can be increased by building the business’s assets, reducing liabilities, and generating profits. It’s often a key consideration when a franchisee is looking to sell their business or exit the system.
Owner’s Equity
This term
Owner’s equity represents the ownership stake that franchisees have in their business after liabilities are subtracted.
Joe Bailey
Lead Franchise Advisor & Owner
At Franchise Reports, the goal is simple: help you find better franchises.
