Transforming Your Business Through Expert Franchise Development

Franchising Your Business

ROI Calculator

Enter Your Franchise Data & Generate Your ROI

When entering your data, please do not use a comma or a percentage sign.

(e.g. 35000 vs. 35,000; 8 vs. 8%)

Franchisees granted annually (The number of franchisees you expect to grant each year.)

New franchisees (Yearly)

Franchise Fee: The intial fee franchisees pay you. (fee often ranges between $20,000 and $50,000.)

Franchise Fee

$

Average yearly Gross Sales per franchisee location: The annual gross sales you expect franchisees to generate (or your average annual gross sales).

Gross Sales

$

Franchise Royalty Fees: A reccuring fee that franchisees pay you-often monthly. (Typically, this fees ranges between 4% and 12%)

Franchise Royalty Fee

Supplies: Materials the franchisees buy directly from you-as franchisor. This figure is calculated as a percentage (%) of yearly gross sales. (Typically, this fees ranges between 4% and 12%)

Supplies

Your Franchising Returns

Franchisor Revenue. (The total revenue generated over the course of 5 years.

Total Franchisor Revenue - 5 years

EBITDA computed at 20% (Typically franchsor EBITDA ranages between 15% and 25%)

EBITDA - total for 5 years

Franchisor Business Valuation: 7x EBITDA multiple used for this calculation. (Typically, franchisor multiples range between 4x and 8x when using EBITDA)

Business Valuation after 5 years

(Test different scenarios to see how you valuation changes.)