Franchise Unit Economics Calculator

Will this franchise unit actually pay you?

Enter what it costs to open, how you would finance it, your sales and costs, and what the franchisor takes. It shows the cash month by month, when you get your money back, the sales you need to break even, whether your cash cushion survives the ramp-up, and how much the brand has to lift your sales to beat opening the same business on your own.

Planning arithmetic on your own numbers.

1. What it costs to open

Initial franchise fee ($)

Build-out and leasehold improvements ($)

Equipment, signage and opening inventory ($)

Cash cushion kept for the ramp-up ($)

2. How it is paid for

Loan amount ($)

Loan interest rate (%)

Loan term (years)

3. Sales

Annual sales once mature ($)

Sales in month 1 (% of mature)

Months to reach mature sales

Sales growth per year after that (%)

4. Running costs

Cost of goods (% of sales)

Crew labor (% of sales)

Card fees and other variable costs (% of sales)

Rent, utilities, insurance and other fixed ($/month)

Pay for whoever runs the unit ($/month)

Fixed cost rise per year (%)

5. What the franchisor takes

Royalty (% of gross sales)

Minimum royalty ($/month, 0 if none)

Brand or ad fund (% of gross sales)

Technology and other fixed fees ($/month)

6. The question you are asking

Years you keep the unit (1-20)

Sale price if you sell at the end (× last year's profit, 0 for none)

Cash you need left each year after the loan ($)

Sales you would reach without the brand (% of franchise sales)

Marketing you would pay for yourself (% of sales)

Questions people ask

What does a franchise really cost me each year?

Every month the franchisor takes a royalty on gross sales (not profit), usually a brand or ad fund share on top, and often a fixed technology fee and a minimum royalty. Together that is the fee load this tool prints as a percentage of sales and in dollars. Because it comes off the top, it is paid even in months you lose money.

How much cash do I need before the unit pays me?

More than the franchise fee. New units ramp up, so early months can lose money while the loan payment is already due. The tool tracks your cash cushion month by month, shows the lowest point and the month it would go below zero, and how much extra cushion would have covered it.

Is a franchise better than opening the same business on my own?

Only if the brand lifts your sales by more than it costs. The tool finds the share of franchise-level sales you would have to reach on your own for the two to tie. If you believe you could reach more than that without the brand, the fees are not buying you anything.

Where do I get the numbers to put in?

The franchise disclosure document the franchisor must give you lists the fees, the estimated initial investment, and sometimes sales figures for existing units. Ask current and former owners what they actually earn, get a real lease and a lender's quote, and enter your own market's costs. The defaults here are placeholders.

Is this financial or legal advice?

No. It is arithmetic on the numbers you type in. It does not review a franchise agreement, predict your sales, or decide financing or tax treatment, and it does not recommend any franchise.

Not decided

Income tax and depreciation, the terms of the franchise agreement (renewal, transfer, territory, required remodels), whether the franchisor's sales figures describe units like yours, your lender's real terms and personal guarantee, working-capital needs beyond what you enter, and what the unit would sell for (an estimate you make, not a measurement). The defaults are placeholders, not market figures: check every number against the disclosure document, your lease and quotes.