Franchise vs Startup Calculator

Franchise vs Startup Calculator helps Compare two everyday planning options using upfront cost, recurring cost, and time horizon assumptions.

Franchise monthly net
₩10,700,000
Startup monthly net
₩10,000,000
Startup BEP
5 months
Residual value rate
20%

Franchise initial

₩73,000,000

Startup initial

₩45,000,000

Better final option

startup

₩8,190,600

Franchise BEP

7 months

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Franchise vs startup calculator guide

This English page translates the Korean franchise-versus-independent-startup calculator and calls calculateComparison, calculateFranchiseInitialInvestment, calculateStartupInitialInvestment, calculateFranchiseMonthlyCost, calculateStartupMonthlyCost, and calculateResidualValue. It preserves franchise fee, deposit, interior cost, education cost, royalty rate, ad fee, material-cost rate, growth, residual value, and BEP logic.

Initial investment basis

The franchise initial investment is franchise fee plus deposit plus interior cost plus education cost plus other initial cost. The independent startup initial investment is interior cost plus equipment cost plus other initial cost.

The default Korean scenario uses values such as KRW 10,000,000 franchise fee, KRW 5,000,000 deposit, KRW 50,000,000 franchise interior cost, and KRW 30,000,000 independent interior cost. Those defaults are scenario baselines, not a claim that every industry has the same opening cost.

Monthly profit and growth

Franchise monthly cost includes rent, labor, material cost, royalty, ad fee, and other cost. Material cost is monthly revenue times material-cost rate, and royalty is monthly revenue times royalty rate, such as a 5% royalty.

Independent startup monthly cost includes rent, labor, material cost, marketing, and other cost. Revenue can grow differently for franchise and startup across 1, 3, or 5 years, so BEP is calculated month by month rather than from one static month.

Residual value and total result

Residual value adds recoverable deposit and a percentage of interior or equipment value. The default residual-value rate is 20%, so liquidation or transfer value is included in final profit.

The final result compares cumulative operating profit plus residual value for franchise and startup. Qualitative factors still matter: brand power, menu control, headquarters restrictions, lease risk, local marketing skill, royalty burden, and exit flexibility.