Franchise Profitability-Value Matrix

The Franchise Profitability-Value Matrix is a 2x2 matrix used to evaluate the potential of a franchise business. It helps to identify which franchises offer the most value and profitability.

At a very high level, the Franchise Profitability-Value Matrix is used in the context of business, finance, marketing.

Franchise Profitability-Value Matrix quadrant descriptions, including examples
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What is the Franchise Profitability-Value Matrix?

A visual explanation is shown in the image above. The Franchise Profitability-Value Matrix can be described as a matrix with the following quadrants:

  1. High Value, Low Profitability: Franchises with high value and low profitability offer a lot of potential, but may require a lot of work to become profitable (e.g. a franchise in a new market).
  2. Low Value, High Profitability: Franchises with low value and high profitability are already profitable, but may not offer much potential for growth (e.g. a franchise in a mature market).
  3. Low Value, Low Profitability: Franchises with low value and low profitability are not likely to be profitable and may not offer much potential for growth (e.g. a franchise in a declining market).
  4. High Value, High Profitability: Franchises with high value and high profitability offer a lot of potential and are already profitable (e.g. a franchise in a growing market).

What is the purpose of the Franchise Profitability-Value Matrix?

The Franchise Profitability-Value Matrix is a 2x2 matrix used to evaluate the potential of a franchise business. It helps to identify which franchises offer the most value and profitability. The matrix divides franchises into four quadrants based on their potential for profitability and value.

The top-left quadrant is for franchises with high value and low profitability. These franchises offer a lot of potential, but may require a lot of work to become profitable. The top-right quadrant is for franchises with low value and high profitability. These franchises are already profitable, but may not offer much potential for growth. The bottom-left quadrant is for franchises with low value and low profitability. These franchises are not likely to be profitable and may not offer much potential for growth. The bottom-right quadrant is for franchises with high value and high profitability. These franchises offer a lot of potential and are already profitable.

The Franchise Profitability-Value Matrix can be used to evaluate the potential of a franchise business and to identify which franchises offer the most value and profitability.


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What templates are related to Franchise Profitability-Value Matrix?

The following templates can also be categorized as business, finance, marketing and are therefore related to Franchise Profitability-Value Matrix: AIDA Marketing Matrix, Affiliate Marketing Matrix, Agile Capability-Value Alignment Matrix, Agile Scaling Matrix, Ansoff Matrix, Asset Allocation Matrix, BCG Matrix, Brand Affinity Matrix. You can browse them using the menu above.

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