How is this company, BAM Franchising Inc, valued at $400M?

They aren’t publicly traded so it’s hard to find out.

It seems like there’s almost no employees and they collect a franchising fee and 6% royalty on the 200+ franchises that BAM claims makes $570k average annual revenue [0].

.06 x 570k x 200 = 6,840,00

So not sure how a $400M valuation comes from $7M/year in revenue.

And this is revenue, who knows what the profit is.

Still, I was surprised there’s 200 franchisees.

[0] https://franchise.bricksandminifigs.com/the-financials/