Franchise Unit Economics Simulator

Royalties and marketing fund contributions come off the top before you ever see a cost structure any independent business would recognize. See the full stack, all the way down to net income.

Reading This Tool

How To Use This Simulator

Enter projected gross sales, cost percentages, and the franchise's royalty and marketing fund rates.

The waterfall walks from gross sales all the way down to net income, showing exactly how much each cost category, including the franchisor's own fees, actually takes.

Your Inputs

Annual Gross Sales $800,000

Cost Of Goods Sold 30%

Labour Cost 28%

Royalty Fee 6.0%

Marketing Fund Contribution 2.0%

Monthly Occupancy Cost $8,000

Other Monthly Operating Costs $4,000

Royalty and marketing fund percentages are almost always calculated on gross sales, not net profit, meaning they're owed even during a slow period.

Unit Economics Summary

Annual Net Income

Net Margin

Total Paid To Franchisor

Gross Sales To Net Income Bridge

This models a single location's illustrative unit economics. Actual franchise agreements vary considerably in fee structure, required local marketing spend, and other terms, confirm the specific figures in your franchise disclosure document.

Want the deeper franchise accounting picture?

Read The Franchise Accounting Guide →