Enter the franchise revenue ($), the total royalty fee (%), and the franchise costs ($) into the calculator to determine the Franchise Profit. 

Franchise Profit Formula

The following formula is used to calculate the Franchise Profit. 

FP = FR – RF/100 * FR – C

  • Where FP is the Franchise Profit ($)
  • FR is the franchise revenue ($) 
  • RF is the total royalty fee (%) 
  • C is the franchise costs ($) 

How to Calculate Franchise Profit?

The following example problems outline how to calculate Franchise Profit.

Example Problem #1

  1. First, determine the franchise revenue ($). In this example, the franchise revenue ($) is given as 10000 .
  2. Next, determine the total royalty fee (%). For this problem, the total royalty fee (%) is given as  3 .
  3. Next, determine the franchise costs ($). In this case, the franchise costs ($) is found to be 5000.
  4. Finally, calculate the Franchise Profit using the formula above: 

FP = FR – RF/100 * FR – C

Inserting the values from above yields: 

FP = 10000 – 3/100 * 10000 – 5000 = 4700 ($)


Example Problem #2

The variables needed for this problem are provided below:

franchise revenue ($) = 2500

total royalty fee (%) = 10

franchise costs ($) = 500

Entering these values and solving gives:

FP = 2500 – 10/100 * 2500 – 500 = 1750 ($)