Real franchise economics

Entry fee, royalty, marketing fund — what's actually left

Parameters

Entry fee, UAH k

Revenue/mo, UAH k

Gross margin, %

Royalty, % of revenue

Marketing fund, % of revenue

Other costs/mo, UAH k

Result

Net income/mo28.0 тис. ₴

Fee payback10.7 mo

Royalty comes from REVENUE, not profit — at 30% margin and 6% royalty the franchisor takes 20% of your gross margin. Compute: (margin − royalty − mkt fund) × revenue − opex. Red flag: a franchise without a proven model or with hidden mandatory purchases.