Work out franchise break even sales instantly with clear inputs, formula shown and shareable results.
Franchise break-even is monthly fixed cost divided by the contribution margin rate, where variable costs include the royalty and marketing levy alongside cost of sales and hourly labour. The levy is what distinguishes franchise break-even from an independent operation.
Contribution margin rate
Contribution rate = 1 - (Royalty % + Cost of sales % + Variable labour %)
Break-even sales
Break-even = Monthly fixed costs / Contribution margin rate
Because it is charged on sales regardless of profitability, so it reduces the contribution rate directly and raises break-even by a proportionate amount.
Then the site is unviable at that cost base. Renegotiate rent, reduce fixed salaries, or do not sign.