The Franchise Tollbooth Audit · 30 seconds · No email to see your number

Calculate How Much Liquid Cash a 6% Gross Royalty Fee Strips From Your Practice.

Top-line royalties drain profitability whether your clinic makes money or not. Use your own projected patient numbers to calculate your five-year liquid cash loss. Two inputs. Your number.

Your annual gross practice revenue$600,000
Franchise royalty rate (typical range)7%
5-year liquid cash stripped by the franchisor — from YOUR revenue
$210,000
Annual royalty tax: $42,000 / year

Arithmetic on your inputs using typical franchise royalty ranges (6–10%). Not a quote from any specific company; actual agreements vary. Gross revenue is your hypothetical, not a projection.

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Gross revenue is not net cash

Gross royalties are calculated before rent, payroll, marketing, or clinical supplies are paid. Run the arithmetic yourself: if your clinic nets 12–20% margins, a 6% top-line royalty consumes 30–50% of your net operating cash (6 ÷ 20 = 30%, 6 ÷ 12 = 50%). In a slow month it is worse, because the royalty does not slow down with you.

How the calculator works

Plug in your own projected enrolment and program pricing. The model compares a percentage-of-gross deduction against a 0% royalty licence across a five-year window. Every figure on the screen is one you supplied.

What 0% actually buys

Retaining 100% of program revenue means margin decisions are yours: reinvest in patient acquisition, staffing, or expansion without a percentage leaving first.