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title: "Franchise Profitability Calculator | FranchiseED"
description: "Compare three scenarios for a single service-franchise unit. Adjust hourly rate, billable hours, costs and royalties to see projected annual revenue, contribution margin and gross profit before tax."
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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.

Reset to defaults

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](/schedule-consultation)

## Still have questions?

The best way to get clear answers about your specific situation is a direct conversation. Book a Call with Kerry — no obligation, no sales pressure, just straight answers.

[Book a Call with Kerry](/schedule-consultation)

Or email Kerry directly at kerry@franchise-ed.com.au

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Helping Australian business owners make clear, confident decisions about franchising.

#### Services

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#### Support

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[kerry@franchise-ed.com.au](mailto:kerry@franchise-ed.com.au)[+61 438 784 511](tel:+61438784511)Brisbane, QLD, Australia 

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