Franchise ROI Calculator: Investment & Royalty Data

Quick Answer

A franchise ROI calculator estimates profitability by subtracting initial investment and ongoing royalties from gross revenue. Based on FranchiseStack's data of 192 franchises, initial investments range from $3,000 (eXp Realty) to over $4.7 million (Burger King), with royalties typically between 0% and 12%.

Source: FranchiseStack · July 2026

Based on analysis of 192 franchises in FranchiseStack's database, ROI potential is heavily influenced by the initial capital requirement and the ongoing royalty structure. Real Estate franchises like eXp Realty offer the lowest entry barriers ($3K-$8K), while the Food & Restaurant sector requires significant capital, such as McDonald's ($1.3M-$2.3M) or Taco Bell ($576K-$3.3M). Investors must also account for royalty fees, which range from 0% in brands like RE/MAX and Ace Hardware to as high as 43% in specialized retail models like 7-Eleven.

Frequently Asked Questions

How do I calculate franchise ROI?

To calculate franchise ROI, subtract your total initial investment and annual operating expenses (including royalties) from your annual net profit, then divide by the initial investment.

Which franchise has the lowest startup cost?

According to FranchiseStack data, eXp Realty has the lowest startup cost ranging from $3,000 to $8,000, followed by Jan-Pro at $4,000 to $56,000.

What is the average royalty fee for a food franchise?

Most major food franchises charge between 4% and 6%, such as McDonald's (4.00%), Dunkin' (5.90%), and Taco Bell (5.50%).

Are there franchises with no royalty fees?

Yes, several established brands like RE/MAX, Kumon, and Ace Hardware report a 0.00% royalty fee in their FDD data, though they may have other flat monthly fees.

What is the investment range for a UPS Store?

The UPS Store requires an initial investment between $178,000 and $403,000 with a 5.00% ongoing royalty fee.