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 (\$)