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 annually.)

New franchisees (Yearly)

Franchise Fee (The intial fee franchisees pay you. Average fee is between $20,000 and $50,000.) (Example: for $20k, enter 20000-no commas)

Franchise Fee

$

Average yearly Gross Sales per franchisee location (Your average annual gross sales; or the annual gross sales you expect franchisees to generate.) (Example: for $300k, enter 300000-no commas)

Gross Sales

$

Franchise Royalty Fees (A reccuring fee -based on gross revenues - that franchisees pay you. Often, this fees is between 4% and 12%. (the whole number you enter will calculated as a percentage)

Franchise Royalty Fee

Supplies (Materials the franchisees buy directly from you-as franchisor. This figure is calculated as a percentage (%) of yearly gross sales. Supplies often range between 4% and 12%, also. (the whole number you enter will calculated as a percentage; If zero, you can leave it blank.)

Supplies

Your Franchising Returns

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

Total Franchisor Revenue - 5 years

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

EBITDA - total for 5 years

Franchisor Business Valuation (Typically, franchisor multiples range between 2x and 10x; and, between 4x and 8x when using EBITDA. This computation uses a 7x multiple, based on EBITDA.)

Business Valuation after 5 years

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