ProFranchise · Simulator
Franchise vs. Independent Simulator
Do the royalties pay for the brand?
Assumptions
Independent (5yr)
$600,000
Franchise (5yr)
$336,000
Franchise edge
-$264,000
| Year | Independent (cum) | Franchise (cum) |
|---|---|---|
| Year 1 | $120,000 | $67,200 |
| Year 2 | $240,000 | $134,400 |
| Year 3 | $360,000 | $201,600 |
| Year 4 | $480,000 | $268,800 |
| Year 5 | $600,000 | $336,000 |
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Built by The Crimson Bench · Educational model, not financial advice
About the Franchise vs. Independent Simulator
Compare running a franchise (fees, but a brand lift) to going independent, over five years of profit.
It's built for directional planning: change any assumption and watch the whole projection move, the way a seasoned operator pressure-tests a plan before committing capital. Everything is computed live in your browser — nothing is sent anywhere.
How the Franchise vs. Independent Simulator Works
The model takes 5 assumptions and returns 3 headline metrics plus a full breakdown. Here is exactly what goes in and what comes out — no black box.
The Inputs
| Assumption | Example value |
|---|---|
| Independent annual revenue | $800,000 |
| Franchise revenue lift | 20% |
| Royalty | 6% |
| Marketing fund | 2% |
| Operating margin | 15% |
Worked Example
Every figure below is produced by the live model using the example assumptions above. Change any input in the simulator to see your own numbers.
Independent (5yr)
$600,000
Franchise (5yr)
$336,000
Franchise edge
-$264,000
| Year | Independent (cum) | Franchise (cum) |
|---|---|---|
| Year 1 | $120,000 | $67,200 |
| Year 2 | $240,000 | $134,400 |
| Year 3 | $360,000 | $201,600 |
| Year 4 | $480,000 | $268,800 |
| Year 5 | $600,000 | $336,000 |
The Operator's Read
Independent wins — the fees exceed the brand's lift at these numbers. The franchise only pays if it drives materially more traffic than you could alone.
Assumptions & Limitations
- •The model is deterministic: it projects your inputs forward with clear arithmetic, not a Monte-Carlo or probabilistic forecast. It shows one scenario at a time — run several to bracket a range.
- •Defaults are illustrative benchmarks, not your business. Replace every field with your real numbers before drawing conclusions.
- •It abstracts away taxes, financing, seasonality, and one-off events unless a field explicitly captures them. Treat the output as a directional estimate.
- •This is an educational tool, not financial, investment, tax, or legal advice. Validate real decisions with a qualified professional.
Frequently Asked Questions
What does the Franchise vs. Independent Simulator calculate?
Compare running a franchise (fees, but a brand lift) to going independent, over five years of profit. It takes 5 assumptions — Independent annual revenue, Franchise revenue lift, Royalty, Marketing fund, Operating margin — and returns Independent (5yr), Franchise (5yr), Franchise edge, along with a full projection table you can export.
How do I use the Franchise vs. Independent Simulator?
Enter your own figures in the input fields above — Independent annual revenue, Franchise revenue lift, Royalty, and the rest. The model recalculates instantly and shows the resulting Independent (5yr) and full breakdown. No sign-up needed to run it.
Is the Franchise vs. Independent Simulator free?
Yes — you can run the simulator and see the headline results for free. Toolkit Pro unlocks the full projection table, Excel/PDF export, saved scenarios, and AI analysis: $180/mo, $1,728/yr, or unlock any 3 simulators for $20.
What's the difference between this and a free calculator?
A calculator answers one question. This simulator models the full picture — multiple linked assumptions, a projection table, and scenario comparison — the way an operator would build it in a spreadsheet, but instantly.
Who built the Franchise vs. Independent Simulator?
The Crimson Bench's Ivy League-educated operators — the same people we deploy into C-suites. This is the self-serve version of a model they'd build inside a live engagement.
Is this financial advice?
No. The Franchise vs. Independent Simulator is an educational modeling tool for directional planning — not financial, investment, tax, or legal advice. Validate any real decision with a qualified professional.
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