Franchise ROI Calculator
Payback on a franchise investment.
Enter your values
ⓘ Live results
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
- 1Enter the total investment including fit-out and fees.
- 2Enter expected revenue and operating margin.
- 3Add royalty and marketing levy percentages.
Worked example
Using the values the calculator loads with:
Inputs
- Total investment240000 $
- Annual revenue520000 $
- Operating margin14 %
- Royalty fee6 %
- Marketing levy2 %
Results
- Annual profit$31,200.00
- ROI13%
- Payback period7.7 years
- Fees paid per year$41,600.00
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.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.