For estate planning purposes, BDO Deal & Valuation Advisory has conducted a valuation analysis of the group Waffle Factory, a restaurant chain franchise headquartered in Belgium (Wallonia) specialising in gourmet waffles.
Founded in 1987 by Stéphane Desobry under Belgaufre company, producer of dehydrated dough of Liege waffles, the group opened its first points of sale in 2000 before giving birth to Waffle Factory three years later with a network of franchisees and the launch of the “LunchWaf”, a proprietary filled salty waffle.
Today, Waffle Factory’s restaurants are present in approximately 70 cities in Belgium and France, offering salty as well as sweet (Liege waffles and “Waffines”) recipes, with a vast array of flavors and toppings such as chocolate, fresh fruits, whipped cream, scoops or ice cream, as well as exclusive iced and hot (“Hot & Crazy”) drinks. At the date of valuation, the franchise network recorded close to 35 million euros of sales and was elected for the 3rd consecutive year the French’s favorite fast food label.
Valuation methodology consisted in income (Discounted Cash Flow method) and market (trading/transaction multiples method) approaches under a Sum-of-the-Parts framework (capturing the respective values of franchising, producing and operating businesses), corroborated with an assets-based approach taking into consideration the real estate as well as goodwill values.
Testimonial of Guillaume Desobry, CEO of Waffle Factory: “The valuation study led by BDO was quick and efficient! It was conducted in a very professional way, and on top the collaboration was very pleasant and friendly. Thank you for the great job that has been done!”.