Franchise owners don’t have time to dig through spreadsheets. These essential KPIs help them monitor what matters most each month—performance, profit, and people—without needing an accounting degree to understand the numbers.
Franchise owners are decision-makers, not financial analysts. They’re in the business of running stores, leading teams, and growing revenue—not getting lost in endless rows of spreadsheet data. That’s why your monthly reports should surface key performance indicators (KPIs) that matter most to their business.
Whether you’re supporting two franchisees or twenty, highlighting the right KPIs—clearly and visually—can shift you from just being “the accountant” to being the trusted advisor.
Here are the top KPIs every franchise owner should see monthly—and how to make them easy to understand and act on.
1. Revenue by Location
Why It Matters:
Revenue is the heartbeat of any franchise. But owners don’t just want the total—they want to know how each location is performing so they can spot growth opportunities or underperformance early.
Best Way to Show It:
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Bar chart comparing monthly revenue per store
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Trendline showing revenue over the last 6–12 months
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Color-coded by location for at-a-glance insight
➡️ Callout example:
“Downtown: $46,000 | Plaza: $43,500 | Eastside: $38,800”
2. Labor % of Sales
Why It Matters:
Labor is often the largest controllable expense in service-based franchises. High labor costs can erode profits fast, especially when sales are flat.
What to Watch For:
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Labor % over 30% often signals a red flag
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Compare Labor % across locations and over time
Visual Tip:
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Line graph showing Labor % trend by store
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Red indicator for locations exceeding target
3. COGS % of Sales
Why It Matters:
COGS (Cost of Goods Sold) affects gross profit and varies based on suppliers, product mix, and shrinkage. Franchises in food, retail, or repair-based sectors must monitor this monthly.
What to Highlight:
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Compare each store’s COGS % to the target (e.g., 35%)
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Include both current month and trendline
Visual Tip:
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Side-by-side bar graph: Actual vs. Target COGS %
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Color-code outliers to catch problem areas
4. Net Income per Location
Why It Matters:
It’s not about how much you make—it’s about how much you keep. Net income helps owners focus on profitability, not just sales.
KPI Combo to Highlight:
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Net Income ($ amount)
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Net Margin (%) = Net Income ÷ Revenue
Visual Tip:
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Table with Net Income and Net Margin % side-by-side
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Sparkline for Net Margin trend
➡️ Callout example:
“Plaza Store: $4,500 Net Income | 10% Net Margin”
5. Forecast vs. Actuals
Why It Matters:
Owners who budget care about how reality stacks up. A variance analysis between forecasted and actual revenue/expenses helps them stay on track and understand what’s working—or not.
Best Practice:
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Show major variances in Revenue, Labor, and COGS
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Explain why things are off, if possible
Visual Tip:
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Bar graph with Actual vs. Forecast per metric
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Add variance % above each bar
6. Orders & Average Order Value
Why It Matters:
Orders show volume. AOV shows value. Together, they give a fuller picture of performance than revenue alone.
Suggested Metrics:
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Total Orders
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Average Order Value = Revenue ÷ Orders
Use Cases:
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Compare AOV across locations
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Track marketing campaign impacts
➡️ Callout example:
“Downtown: 2,450 Orders | $19 AOV”
7. Quarter-over-Quarter (QoQ) or Year-over-Year (YoY) Performance
Why It Matters:
Owners want to see progress, not just numbers. Comparing periods shows whether stores are growing, stagnating, or slipping.
Ideal Visuals:
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Bar or column chart comparing this quarter vs. last
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Add % change with green (up) or red (down) arrows
Focus On:
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Revenue growth
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Margin improvement
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Lower labor/COGS ratios
Why Visual KPIs Beat Spreadsheets Every Time
You could bury owners in Excel sheets filled with 100 rows of numbers… or you could give them a single, clean dashboard that tells the whole story. When franchise KPIs are visualized well, owners are more likely to take action.
Visual Reporting Wins:
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Easier to compare across locations
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Highlights trends and red flags
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Saves time and improves conversations
➡️ Reach Reporting Tip: Use one-page dashboards that highlight key KPIs at the top, followed by visual breakdowns—this keeps the report fast and functional.
Final Thoughts: KPIs That Drive Franchise Growth
Franchise success isn’t just about making sales—it’s about consistently measuring the right things. By focusing on KPIs that highlight performance, control costs, and reveal trends, you help owners run smarter, more profitable operations.
With tools like Reach Reporting, you can automate the delivery of these visual KPI dashboards across all franchise locations—monthly, quarterly, or whenever they’re needed. Build one layout. Clone it. Connect the data. And let the numbers do the talking.
People Also Ask:
Q: What KPIs should franchise owners track each month?
A: Key KPIs include revenue per location, labor % of sales, COGS %, net income, forecast vs. actuals, and order volume. These metrics help monitor both sales performance and cost control.
Q: How can I visualize franchise KPIs effectively?
A: Use color-coded dashboards, bar and line graphs, and callout summaries to make KPIs clear. Visual reports are easier for franchise owners to understand and act on.