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MFA Deal Economics Modeler
Model a master franchise deal from both sides: upfront fee, royalty split, development schedule, 10-year cash flow, break-even units and sensitivity — then print every assumption for the negotiating table.
Deal inputs
Franchisor — 10-year net
$1,925,000
Master — 10-year net
$925,000
Master payback year
Y5
Break-even open units (master)
15
10-year cash flow, both sides
| Year | Units open | System sales | Royalty pool | Franchisor | Master | Master cumulative |
|---|---|---|---|---|---|---|
| Y1 | 6.0 | $1,200,000 | $60,000 | $209,000 | −$419,000 | −$419,000 |
| Y2 | 12.0 | $3,600,000 | $180,000 | $107,000 | $3,000 | −$416,000 |
| Y3 | 18.0 | $6,000,000 | $300,000 | $155,000 | $75,000 | −$341,000 |
| Y4 | 24.0 | $8,400,000 | $420,000 | $203,000 | $147,000 | −$194,000 |
| Y5 | 30.0 | $10,800,000 | $540,000 | $251,000 | $219,000 | $25,000 |
| Y6 | 30.0 | $12,000,000 | $600,000 | $200,000 | $180,000 | $205,000 |
| Y7 | 30.0 | $12,000,000 | $600,000 | $200,000 | $180,000 | $385,000 |
| Y8 | 30.0 | $12,000,000 | $600,000 | $200,000 | $180,000 | $565,000 |
| Y9 | 30.0 | $12,000,000 | $600,000 | $200,000 | $180,000 | $745,000 |
| Y10 | 30.0 | $12,000,000 | $600,000 | $200,000 | $180,000 | $925,000 |
What to concede first
Ranked by how much the master gains for every dollar you give up over 10 years.
- Cut the master fee by 10% — master +$15,000 · you −$15,000
- Give the master 10 pts more of unit initial fees — master +$75,000 · you −$75,000
- Give the master 10 pts more of royalty — master +$450,000 · you −$450,000
- Relax the schedule by 12 months — master +$180,000 · you −$120,000
- Cut unit royalty by 1 point — master +$540,000 · you −$360,000