[prepend]

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/

[pigglywiggly42]

With the amount of stolen items from 'consignment deals' the $400 million valuation is probably correct. $200000 in stolen goods from 200 franchises will definitely get them to $400 million in no time. I say stop feeding the beast

[raffytaffy33]

The company are thieves. There is a 1hr 49min video regarding them. The police in Utah are corrupt and protect them. When body cam is requested, the police department redacts audio. https://youtu.be/GwhQHBIqpow?si=NkdwzdMtm-sW7ga1

https://youtu.be/CCbl2z8MWJE?si=FEtKDTzOTVWAZfvo

[sgerenser]

I can't actually find anything that supports a $400M valuation. ChatGPT seems to agree, that there's no public documents supporting that valuation, and an estimate of $6-$10M year in revenue sounds in the ballpark, meaning a value nowhere near $400M. But something as high as $100M is probably appropriate if their profit margins are high, which would be expected for a franchisor.

[prepend]

I’m guessing the valuation is just youtube bs/hype.

10-15x earnings seems pretty massive. But perhaps there is more money in the used lego market than I thought.