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.
How it works. Adjust the hourly rate, billable hours, working weeks, cost of sales, royalty and fixed costs for each scenario. The strongest case — by gross profit before tax — is highlighted. Use this to stress-test a franchise opportunity before you commit.
| Scenario |
STRONGEST CASE
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|---|---|---|---|
| Assumptions | |||
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Hourly rate ($)
Charged to the customer per hour
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Billable hours / week
Chargeable hours actually worked
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Working weeks / year
Allow for holidays and downtime
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Cost of sales (%)
Direct labour / materials as % of revenue
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Royalty rate (%)
Franchisor royalty as % of revenue
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Fixed costs / year ($)
Vehicle, insurance, software, levy, admin
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| Results | |||
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Annual revenue
|
$46,000 | $72,000 | $109,200 |
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Monthly revenue
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$3,833 | $6,000 | $9,100 |
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Less: cost of sales
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– $20,70045.0% | – $28,80040.0% | – $41,49638.0% |
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Contribution margin
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$25,30055.0% | $43,20060.0% | $67,70462.0% |
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Less: royalty
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– $3,6808.0% | – $5,7608.0% | – $8,7368.0% |
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Fixed costs + royalty
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$28,680 | $30,760 | $36,736 |
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Gross profit before tax
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$-3,380 | $12,440 | $30,968 |
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Gross profit margin
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-7.3% | 17.3% | 28.4% |
Indicative only. Figures are estimates based on the assumptions entered and exclude tax, owner drawings, finance costs and one-off set-up costs. Always validate against the franchisor's disclosure information and seek independent advice.
Want a sanity-check on these numbers?
Book a Discovery Call with FranchiseED. We'll review your assumptions against real benchmarks and help you weigh up whether the opportunity stacks up.
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