Finance
ROI
Return on Investment - the ratio of net profit to total investment, expressing profitability as a percentage of capital deployed.
Related Terms
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.
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.
IRR
Internal Rate of Return - the discount rate that makes the net present value of cash flows equal to zero, used to evaluate investment attractiveness over time.