Franchise owners don’t need more data — they need the right data. The following KPIs are essential for tracking operational health, managing risk, and scaling successfully. These are the numbers that should be in every monthly report.
Download: Top Metrics Every Franchise Owner Should Track Monthly
“Our franchisees now get a one-page summary of KPIs each month. They can instantly see how they’re doing without digging through spreadsheets.”
– QuickBooks User
Labor % of Sales
This shows how much of your revenue is going toward payroll. It’s one of the most controllable expenses, and even a 1% swing can significantly impact net margin. A rising percentage often signals overstaffing or productivity issues.
Cost of Goods Sold (COGS %)
COGS includes all the direct costs of producing goods sold by a franchise. Tracking this monthly helps you stay ahead of supplier changes, shrinkage, or inefficiencies in production. Low margin? COGS is often the first place to look.
Net Profit Margin
How much of each dollar earned actually becomes profit? This is the ultimate indicator of financial health. Franchise owners should know this number monthly to make quick decisions on spending, staffing, or promotions.
Revenue by Location
Revenue breakdown by unit allows you to identify your strongest performers and those needing attention. Used well, this KPI helps with strategic decisions like reallocation of resources or peer coaching.
Bonus: Franchise Red Flags Diagnostic Checklist
This quick-reference checklist helps you spot financial red flags before they become serious problems. Use it to review monthly or quarterly franchise reports and keep each location on track.
Budget vs. Actual
One of the most important monthly checks. This visual comparison tells you whether your locations are hitting goals or missing them — and by how much. It’s a foundational tool for accountability and forecasting.
Overhead as a % of Sales
This metric highlights fixed expenses like rent, admin, and utilities. Keeping overhead in check ensures more of your revenue flows to the bottom line — especially during slow months or seasonal dips.
Customer Acquisition Cost (CAC)
This is the total cost to acquire one new customer. Rising CAC can signal inefficiencies in marketing or sales. Combine it with lifetime value (LTV) to ensure sustainable growth.
Break-even Forecast
Knowing when each location will cover its costs is vital for financial planning. This KPI helps set realistic expectations and flags underperforming stores before it’s too late.
Want to learn how to visualize these KPIs for faster decision-making? Check out Part 4 in our series.
Bonus: Monthly KPI Checklist
Need a quick way to track KPIs across your locations? Download our printable checklist to stay focused and aligned all month long.
Download the Franchise Sample Report
Our downloadable report includes each KPI laid out clearly across all locations.
Start Reporting Like a Franchise Pro
Ready to simplify your reporting? Try Reach Reporting free for 30 days or schedule a live demo.
People Also Asked
Q: What KPIs should every franchise owner track monthly?
A: Labor %, COGS %, Net Margin, Revenue by Location, CAC, and Break-even Forecast are among the top metrics for growth and efficiency.
Q: How can I help franchisees understand their KPIs?
A: Use visual dashboards and narrative insights that explain what each metric means and how to respond to it.
Explore More from This Series
- Part 1: Financial Reporting for Franchise Businesses
- Part 2: How to Educate Franchise Owners on Their Financial Reports
- Part 3: Visualizing Labor%, COGS, and Net Margins by Location
- Part 4: Why Visuals Matter: Breaking Down Franchise Financial Metrics
- Part 5: Franchise KPI Guide: Top Metrics to Monitor Monthly
- Part 6: Franchise Budgeting and Forecasting Best Practices
- Bonus Article 1: How to Create a Consolidated Franchise Report That Makes Sense
- Bonus Article 2: Build Multi-Location Franchise Financial Reports
Get More Articles Like This to Your Inbox
Enter your email to stay informed as new blogs in this series are released.