Franchise Royalty Calculator
Our Franchise Royalty Calculator helps business owners and franchisees quickly estimate royalty fees based on revenue or fixed amounts. Whether you're a franchisor setting royalty rates or a franchisee calculating monthly payments, this tool ensures accurate and hassle-free financial planning.
DISCLAIMER : These results are for indicative purpose only. Actual results may vary. For exact details, please contact us.
Understanding Franchises and Royalty Fees
What Is a Franchise?
A franchise is a business model where a franchisor (brand owner) grants a franchisee (independent operator) the right to use its trademark, systems, and support in exchange for fees (initial investment + ongoing royalties).
What Are Royalty Fees in Franchising?
Royalty fees are recurring payments (weekly/monthly) that franchisees pay to the franchisor. They can be structured in two ways:
- Percentage-Based Royalty (e.g., 5-20% of monthly revenue)
- Fixed Fee Royalty (set amount regardless of revenue)
Franchise Royalty Calculation Formulas
1. Percentage-Based Royalty Formula
Example:
Monthly Revenue = ₹50,000
Royalty Rate = 6%
Royalty Fee = (50,000 × 6) / 100 = ₹3,000
2. Fixed Fee Royalty Formula
Example:
Fixed Fee = ₹10,500/month
Royalty Fee = ₹10,500
Total Expenses & Net Profit Formulas
1. Total Expenses Calculation
2. Net Profit Calculation
Example Breakdown (Indian Currency)
| Category | Amount |
|---|---|
| Monthly Revenue | ₹2,00,000 |
| Royalty Fee (6%) | ₹6,000 |
| Marketing Cost | ₹10,000 |
| Salary Cost | ₹30,000 |
| Shop Rent | ₹15,000 |
| Electrical Bill | ₹8,000 |
| Other Expenses | ₹12,000 |
| Total Expenses | ₹81,000 |
| Net Profit | ₹1,19,000 |
Why Are Royalty Fees Important?
- Sustains Franchisor Support (training, marketing, R&D)
- Ensures Brand Consistency
- Scales Franchise Growth
How to Use the Franchise Royalty Calculator
Enter Monthly Revenue
Input your gross sales.
Select Royalty Type
Choose between percentage (%) or fixed fee.
Add Expenses
Include marketing, salaries, rent, and other costs.
Calculate
Get instant royalty fee, total expenses, and net profit.
👉 Try it now—it's 100% free!
Try Our Free Franchise Royalty Calculator
Our tool automates all calculations:
- ✅ Royalty fees (% or fixed)
- ✅ Total expenses (rent, salaries, marketing, etc.)
- ✅ Net profit after costs
Financial Planning for Franchisees
Our Franchise Royalty Calculator simplifies financial planning for franchisees. Whether you're evaluating a new franchise or managing an existing one, this tool helps you:
- 📊 Forecast expenses
- 💰 Estimate profits
- 🔍 Make data-driven decisions
Try it now—no download or registration required!