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    Franchise Profitability Calculator

    Compare three scenarios for a single service-franchise unit. Edit any assumption and the results update instantly. All figures are annual unless stated, in Australian dollars.

    Would your franchisees actually make money?

    Before you franchise your business, you need to answer one question honestly: can a franchisee — paying your royalty, carrying their own costs, working realistic hours — earn a living from your model? If they can't, you don't have a franchise system. You have a problem that recruitment will only multiply.

    This calculator lets you test it. Model a single franchise unit under three scenarios — conservative, expected, and strong — and see exactly what's left after cost of sales, your royalty, and fixed costs. Edit any assumption and the results update instantly. All figures are annual, in Australian dollars.

    How it works. Enter the hourly rate a franchisee would charge, the billable hours they'd realistically work, and their likely costs — then set your proposed royalty rate and watch what it does to their bottom line. The strongest case is highlighted. If even your optimistic scenario leaves the franchisee struggling, that's not a reason to abandon franchising. It's a reason to fix the model first.
    Scenario
    STRONGEST CASE
    Assumptions
    Hourly rate ($)
    Charged to the customer per hour
    Billable hours / week
    Chargeable hours actually worked
    Working weeks / year
    Allow for holidays and downtime
    Cost of sales (%)
    Direct labour / materials as % of revenue
    Royalty rate (%)
    Franchisor royalty as % of revenue
    Fixed costs / year ($)
    Vehicle, insurance, software, levy, admin
    Results
    Annual revenue
    		 $46,000 $72,000 $109,200
    Monthly revenue
    		 $3,833 $6,000 $9,100
    Less: cost of sales
    		 – $20,70045.0% – $28,80040.0% – $41,49638.0%
    Contribution margin
    		 $25,30055.0% $43,20060.0% $67,70462.0%
    Less: royalty
    		 – $3,6808.0% – $5,7608.0% – $8,7368.0%
    Fixed costs + royalty
    		 $28,680 $30,760 $36,736
    Gross profit before tax
    		 $-3,380 $12,440 $30,968
    Gross profit margin
    		 -7.3% 17.3% 28.4%

    Not sure your assumptions hold up? Book a Call with Kerry and we'll test them against real franchise benchmarks — before you build a system on them.

    Want a sanity-check on these numbers?

    Book a Call with Kerry. We'll review your assumptions against real benchmarks and help you weigh up whether the opportunity stacks up.

    Book a Call with Kerry