What Is Franchise ROI?
If you’ve ever thought about buying a franchise, you’ve probably asked yourself:
“But what’s the return on investment?”
Totally fair question — and an important one.
Let’s Start With the Basics
ROI stands for “return on investment.”
In franchising, it means looking at how much money you put in up front — and how long it takes to earn that money back.
Simple idea, big impact.
Where to Find That Info
One of the best places to start is Item 19 of the Franchise Disclosure Document (FDD).
That’s where franchisors share financial performance data from current locations.
It won’t tell you exactly what you will make — but it gives you a sense of how other franchisees are doing.
Ask Other Franchisees
Numbers on paper are great, but real conversations are better.
Reach out to current franchisees and ask:
How long did it take you to make back your investment?
What surprised you about the financial side?
Would you invest again?
These chats can be super insightful.
So… What Is Franchise ROI?
It’s the measure of how quickly you can recover your investment — and start seeing profit.
You’ll get the clearest picture by looking at Item 19 and talking to franchisees.
Franchising is an investment, after all — and a little homework goes a long way.
