Franchise Your Business ROI Calculator

Average Gross Sales per Year Per Location of Your Business:

This would be the total Gross Sales for your Business for One Year.

Franchises Sold Per Year:

This is an estimate of how many franchises you estimate selling per year.

Franchise Fee (Average Franchise Fee $40,000):

This is the up Front Fee that a Franchisee will pay for the Franchise Rights per Franchise Territory.

Franchise Royalty Fee (Average Royalty is 7% of Gross Sales):

This is the percentage royalty fee that will be paid to you each month based on their gross sales.

Cost of Goods as a % of Your Total Revenue:

This would be the cost of goods sold in your business divided by the total sales.
* If you do not sell products to franchises then enter 0

Total Franchise Revenue in 5 Years:

This figure is the total sales generated through the franchise model over five years.

Net Cash Flow over 5 Years:

This figure is the total net cash flow from the franchise model over five years.

Your Business Valuation after Five Years:

This figure is the valuation of your business from franchising. Franchise systems are valued on average at 18X EBITDA.