Unit Economics
The profitability and financial metrics of a single restaurant location, including revenue, costs, margins, and return on investment at the store level.
Related Terms
Four-Wall EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization at the unit level, excluding corporate overhead. Represents the pure profitability of a single restaurant location.
AUV
Average Unit Volume - the mean annual revenue per restaurant location, a key metric for evaluating franchise system performance and unit-level economics.
Cash-on-Cash Return
The annual pre-tax cash flow divided by the total cash invested, expressed as a percentage. A key metric for evaluating franchise investment performance.
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