The Intent
You want to quantify financial harm caused by contractual breaches, unfair practices, or restrictive controls in a way that supports negotiation, mediation, or litigation.
How I Solve It
I use the 25 Factors to establish a 'but for' valuation, comparing what the business would reasonably be worth absent the disputed conduct versus observed outcomes. Factor #4: Return on Investment, Factor #11: Future Business Outlook, Factor #24: Risk, and Factor #25: Opportunity are central to this comparison.
The 5 Senses Inspection Report provides real-world evidence of operational disruption, customer response, and staff behavior that financial statements alone cannot show.
Experience
It is vital because "How do you value damages in a franchise dispute?" is not a mechanical calculation. It is a real-world judgment about risk, control, sustainability, and transferability — and that judgment is where 10–15 years of owner-operator and valuation experience, your gut–brain axis, does the heavy lifting.
Why It Is Not Mechanical
On paper, valuation appears formula-driven. In reality, governance rights, risk concentration, growth durability, market conditions, and stakeholder dynamics materially affect value.
Where Experience Changes the Number
Decisions around normalization, premiums, discounts, projections, and defensibility require judgment formed through lived ownership, negotiation, and financial accountability.
Why the Gut–Brain Axis Matters
The brain performs disciplined financial analysis. The gut recognizes unrealistic narratives, hidden leverage, emotional distortions, and deal risk. Together they produce conclusions that withstand scrutiny.
Protecting Financial Lives
The final number affects wealth, control, solvency, tax exposure, and long-term relationships. Requiring 10–15 years of serious hands-on business and valuation experience ensures the answer is fair, defensible, and durable. See my Experience page.
The Result
You obtain a damages valuation that is defensible, understandable, and usable in dispute resolution.