Comparing Two Franchise Offers with NPV and IRR
This lesson is part of the course
In this lesson
You compare two fictional franchise offers over ten years: cash margin after fees, NPV at your required return and IRR – and see why the two measures can disagree.
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Lessons in this course
- The Initial Investment: Low and High Estimates Locked
- The Unit P&L: Royalty and Ad-Fund Fees Locked
- Four-Wall EBITDA and Cash-on-Cash Return Locked
- Payback Period from Monthly Cash Flows Locked
- Franchised vs Company-Owned: the Brand's View Locked
- The Franchisor's Revenue Model: Fees and Royalties Locked
- Multi-Unit Rollout: Openings, Ramp-up and Cumulative Units Locked
- Comparing Two Franchise Offers with NPV and IRR Locked