Transforming Your Business Through Expert Franchise Development

Franchising Your Business


ROI Calculator

Enter Your Franchise Data & Generate Your ROI

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

Franchise Fee (Intial fee franchisee pay to be granted a franchise. Average fee is between $20,000 and $50,000)

$

Average yearly Gross Sales per franchisee location (this would be your average gross sales, annually; or the gross sales you expect franchisees-on average- to generate, annually )

$

Franchise Royalty Fees (this is the fee -based on gross revenues- that franchisees pay you each month. Often, this fees is between 5% and 7%. Please write this as a decimal- e.g. for 7% write .07)

Supplies (Materials you -as franchisor- would supply directly to the franchisees, for a fee. This figure is calculated as a percentage (%) of yearly gross sales. e.g. for 2% write .02 ; If zero, you can leave it blank.)

Your Franchising Returns

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

A good EBITDA for a frachisor is between 15% and 25%. (For this calculation, EBITDA was calculated at 20% of "Total Franchisor Revenue".)

Franchisor Business Valuation (Franchisor multiples often range between 2x and 10x, but typlically range between 3x and 6x when using EBITDA. This computation uses a 5x multiple based on EBITDA.)