Business

Franchise ROI Calculator

Payback on a franchise investment.

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Results update instantly as you type — no submit needed.

Results
Annual profit
$31,200.00
ROI
13%
Payback period
7.7 years
Fees paid per year
$41,600.00

Quick answer

Franchise ROI compares annual profit after royalties with the total investment required.

ROI = annual profit ÷ total investment

How to use the Franchise ROI Calculator

  1. 1Enter the total investment including fit-out and fees.
  2. 2Enter expected revenue and operating margin.
  3. 3Add royalty and marketing levy percentages.

Frequently asked questions

What payback is acceptable?

Three to five years is typical for food franchises.

Are royalties on revenue or profit?

Almost always on gross revenue, which is why margin matters.