ROI-‘Return On Investment’
ROI
Whenever we do any investment, the first thing comes in mind is ROI-‘Return On Investment’.
An average annual return of 10 to 12 % is considered as good ROI. Anything higher than 12% is excellent.
But in the case of franchisee business the investment includes talent and time in addition to money. Hence, it is reasonable to expect a higher return in aspect of invested time and talent also.
One non-financial but a significant benefit would be your freedom to work for your passion that definitely will have a positive effect on the quality of your life. But, of-course an investor would not consider this as a return.
In Mastermind Abacus business model ROI may vary depending upon the physical location of the franchisee center. Considering a franchisee is started in a rental premises and they are involved in teaching and managing the center too, the Breakeven Point (BEP) can be expected to achieve with 25 to 30 students, whereas with 60 to 70 students the ROI would be more than 50 % of your investment.
The success of your franchisee business will be directly proportional to the implementation of the marketing strategies and number of admissions.
The above calculations may vary according to the country, location and the establishment expenses done by you.