Finds how long a franchise takes to recoup its total investment.
Total investment — Business metric. Affects cost, margin, or break-even; validate against recent data. Example: 0.1.
Total investment is required
average monthly net cash flow — Business metric. Affects cost, margin, or break-even; validate against recent data. Example: 0.101.
average monthly net cash flow is required
Finds how long a franchise takes to recoup its total investment.
Formula
paybackMonths = totalInvestment ÷ averageMonthlyNetCashFlow