Not what a franchisee earns — what the franchisor earns. Move the four numbers that decide it and see the yearly picture. Then decide whether packaging your concept is worth doing at all.
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Recurring share: of it is royalty — income that continues whether or not you sign anyone new that year.
This calculator models your income as the franchisor, not a franchisee's. It is not a projection of what a franchisee earns, and none of it may be shown to a prospective franchisee. In the US, any financial performance figure put in front of a franchise buyer is a financial performance representation and belongs in Item 19 of your Franchise Disclosure Document, prepared with a licensed franchise attorney. Use this to decide whether to explore franchising — not as a sales document.
Every stalled franchise programme we have seen was built on a version of this calculation that ignored one of the four things below.
The slider says four a year. Getting four qualified buyers who close is a marketing and sales operation, not a consequence of having a package. Concepts with no recruitment funnel routinely sign zero for eighteen months.
A closed franchise pays nothing and costs you a territory, a legal exit and a reference. Royalty income is a bet on your operations documentation being good enough that a stranger can hit your numbers.
Field visits, training, quality audits, a support phone that rings, updates to the manual. By roughly ten units most franchisors need dedicated headcount. That comes out of the total above.
Packaging, legal work, registration, materials and recruitment all get paid before the first royalty arrives. The model turns positive somewhere in the second or third year — which is why we run a Readiness Gate before anyone spends anything.
The free readiness check gives you a written verdict from Tatyana Mikheenkova — including whether your unit economics survive a royalty at all.
See how franchise packaging works →