When evaluating the financial opportunity in a franchise, you cannot focus on the expenses without a complete understanding of the market potential and revenue. Who cares if you’re paying out $200K a year in employee wages if you are bringing in $500K in revenue. Without understanding the revenue ramp, you cannot judge the expenses. This includes royalties and other fees you will be paying to the franchisor. If you focus on expenses, you will never make a financial model right. If you focus on the market potential and the number of sales you want to create in a month, then the expenses will fall in line against that revenue.