Metric for the profitability of an investment: ratio of profit (or benefit) to capital invested, often expressed as a percentage.
ROI shows whether an investment – e.g. in software, training or expansion – pays off. In franchise it is considered both for headquarters (investment in system and IT) and for franchisees (entry fee, ongoing fees). Benchmarking and KPIs provide the data for ROI calculations. Transparent communication on ROI strengthens acceptance of fees and investments.
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