Affordability Calculator
Before you fall for a brand, find out if you can actually afford it — the liquid capital and net worth most franchisors expect, your funding gap, and the reserve to keep you safe.
What this calculates
Before evaluating any brand, the question is whether you clear its financial gate. This compares your liquid capital and net worth against a brand's stated requirements, and then asks the harder question the requirement does not cover: after the initial investment, what reserve is left to carry the unit through the months before it reaches break-even?
What you will need
Liquid capital. Cash and assets you can convert quickly without penalty. Retirement accounts and home equity are usually counted differently by franchisors and by lenders, and treating them as liquid is how people arrive underfunded.
Net worth. Assets minus liabilities. Most brands set a floor here as well as on liquidity, because they have watched undercapitalised franchisees fail.
The brand's stated requirements. Taken from the brand's own disclosure. These are minimums to be considered, not a comfortable position to open from.
How to read the result
Meeting the minimum is not the same as being able to afford it. The figure that matters is what remains after you have funded the build-out: a unit rarely covers its own costs from month one, and the reserve that carries it to break-even is the difference between a slow start and a failed one. If clearing the brand's threshold leaves you with nothing behind it, you do not yet clear the real bar.
Questions about this tool
I meet the minimum. Is that enough?
It is enough to be considered. Franchisor minimums are set to filter applicants, not to guarantee you are comfortably funded. Model your working capital separately before you treat qualification as affordability.
Does home equity count as liquid capital?
Generally not on its own. Some franchisors and lenders will consider it as part of net worth or as security, but it is not cash available next month, which is what the liquidity requirement is really testing.
Can financing close the gap?
Sometimes, but a loan raises your fixed costs from day one and the lender will still want equity from you. Borrowing to reach the minimum leaves you with both a thin reserve and a repayment obligation.
For reference only; not legal, tax, or investment advice. Results depend entirely on the figures you enter — check them against your own quotes and your franchise agreement before acting on them.