Cash-on-Cash Return
The annual pre-tax cash flow divided by the total cash invested, expressed as a percentage. A key metric for evaluating franchise investment performance.
Related Terms
ROI
Return on Investment - the ratio of net profit to total investment, expressing profitability as a percentage of capital deployed.
Unit Economics
The profitability and financial metrics of a single restaurant location, including revenue, costs, margins, and return on investment at the store level.
Payback Period
The time required to recover the initial investment from cash flows, typically measured in months or years. QSR franchises often target 3-5 years.
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