Franchise Agreement Cost Calculator
Calculate total franchise obligations including fees, royalties, and advertising over the term.
Legal Disclaimer
This calculator provides general estimates only and does not constitute legal advice. Laws, regulations, and court procedures vary significantly by jurisdiction. Consult a licensed attorney in your area for advice specific to your situation.
Inputs
$
%
%
$
$
years
%
Results
First Year Total Cost
$290,000
Total Obligations Over Term
$708,555.17
Average Annual Cost$70,855.52
Total Royalties$343,916.38
Total Advertising Fees$114,638.79
Year 1 Royalty$30,000
How to Use This Calculator
- Enter the initial franchise fee, royalty rate (%), and advertising fee (%) from the FDD.
- Set projected Year 1 revenue, build-out cost, agreement term (years), and annual revenue growth rate.
- Review First Year Total Cost, Total Obligations Over Term, Total Royalties, and Average Annual Cost.
- Compare total obligations to revenue projections to assess whether the franchise economics work.
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