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Franchisee Return on Investment (ROI) Calculator

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How much can you expect to earn on your franchise investment? Use the franchisee ROI calculator below to help you estimate the return on your investment. This figure can help you determine if buying the franchise is a good decision. 

To use the calculator, enter your data in the blank spaces in the center column.  Please note, this calculator won't predict your success. It just estimates the ROI based on the financial data you enter.  Please see the article about how to calculate ROI for additional information.

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Item Amount or % Notes
Enter your initial franchise investment: $ This is the investment amount from line 7 of the Franchise Disclosure Document plus any projected additional capital requirements. Be sure to include a reasonable cost for owner salary, if you'll be forgoing a salary while the business gets started.
Projected 1st year gross sales: $ Projected sales and gross margin figures should come from your business plan and from discussions with the franchisor and other franchisees
Projected gross margin percentage (Note: enter the actual percent, as in 35 for 35% , or 15.5 for 15.5%)

%

First year projected gross margin  
  Franchise Fees  
Royalty percent % Enter the royalty percentage you will be paying
Ad Fund percent if it applies % Enter the percentage of sales you have to contribute to the ad fund, if any
     
     
  Expenses  
Rent $  
Salaries $ Enter the projected annual costs for Rent, Insurance, Supplies, Equipment, Deposits, Travel and Lodging for Training, Utilities and Professional Fees. This information is included in Item 7 and you’ll need to adjust for a full year of operation.
 
Telephone $
Internet $
Advertising $
Office Supplies $
Equipment $
Travel & Entertainment $ Enter salaries, telephone, advertising, postage, printing, travel and entertainment should be based upon your best estimate for the first full year
Leases $
Insurance $
Deposits $
Professional Fees $
Utilities $
Postage $  
Misc $  
Total Expenses: $  
Estimated Pre-Tax Income $  
ROI Percent %  
   
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