Franchise Growth Model

Franchise Growth Model

Change the assumptions and see unit growth and franchisor revenue over 12, 24 and 36 months. Example values are filled in; replace them with your own.

Cumulative revenue, 36 months
$0

Revenue to the franchisor

RoyaltiesFranchise feesRunning total
Running total
Revenue by month

One, two and three years

Monthly ledger

Royalty revenue = royalty-paying units x average monthly volume x royalty percentage. Franchise fees = new units opened x fee per unit. Volume, royalty and fee stay constant for all 36 months, with no closures and no franchisor costs.