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A free, instant illustration of how franchise fees, royalties, and ad-fund income stack up over time. Adjust the numbers and explore the model — no signup required.
$5.6M
Including $1.5M in recurring royalty & ad-fund income in Year 5 alone — that's money you earn every year after, on top of new franchise fees.
Revenue Breakdown by Year
Franchise fees (one-time) + royalties & ad fund (recurring, growing)
Year-by-Year Breakdown
| Year | New Units | Total Units | Franchise Fees | Royalties | Ad Fund | Year Total |
|---|---|---|---|---|---|---|
| Year 1 | 5 | 5 | $225,000 | $225,000 | $75,000 | $525,000 |
| Year 2 | 5 | 10 | $225,000 | $450,000 | $150,000 | $825,000 |
| Year 3 | 5 | 15 | $225,000 | $675,000 | $225,000 | $1,125,000 |
| Year 4 | 5 | 20 | $225,000 | $900,000 | $300,000 | $1,425,000 |
| Year 5 | 5 | 25 | $225,000 | $1,125,000 | $375,000 | $1,725,000 |
| 5-Year Total | $5,625,000 | |||||
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This is a hypothetical, educational illustration of how franchise economics generally work — franchise fees, royalties, and ad-fund income over time. The numbers are generated from industry-average presets and the values you enter, not from any specific franchise's actual results. It is not a financial performance representation (FPR) under FTC Franchise Rule 436 / Item 19, not a guarantee of revenue, and not a projection of what any specific franchisor or franchisee will earn. Franchising involves significant cost and risk; consult qualified legal, financial, and business advisors before franchising your business.
Regulatory note (FTC Rule 436 / 16 CFR Part 436). This tool has been assessed against the FTC Franchise Rule. It is a generic, hypothetical illustration of franchisor economics displayed to prospective franchisors evaluating whether to franchise their business — it is not a financial performance representation (FPR) about the actual or potential sales, income, or profits of any specific franchise system's franchisees, and it is not shown to prospective franchisees of any particular franchise. Accordingly, the Rule's reasonable-basis and Item 19 disclosure requirements do not apply to this content. Any actual FPRs a franchisor makes about its own system are handled separately under the Rule, with the required reasonable basis and substantiation, in the FDD Item 19 builder.