What is a Franchise AUV? Average Unit Volume, Explained

Franchise average unit volume (AUV) is the average annual sales a brand’s locations bring in. It’s a single number, but it does more work than almost any other metric in franchising, as it shows you what sales volume a brand’s locations are actually producing.

Below, you’ll learn more about what AUV means, how it’s calculated, and why it deserves a hard look when evaluating franchise ownership opportunities.

Key Takeaways

• AUV is calculated by dividing the gross sales of the units included in the calculation by the number of those units. It represents average annual gross sales per location.
• When a franchisor shares an AUV or another financial performance claim, it must explain the basis for that figure in Item 19 of its Franchise Disclosure Document (FDD).
• AUV is gross sales, not profit. It should be considered alongside investment costs, operating expenses, and unit profit margins when evaluating a franchise opportunity
• Teriyaki Madness shops are running an AUV of $1,113,760* in gross sales, with 46 new shops opened in 2025 alone.

What Does AUV Mean in Franchising?

Franchise AUV is the average annual sales a brand records across all operating locations. Depending on the brand, that may include franchisee-owned units, franchisor-owned units, or both. At its simplest, it’s the total system sales divided by the number of units. It can be found in Item 19 of a brand’s FDD, the legal document every franchisor has to hand over before you can sign or pay anything. Listing an AUV is not required by the FTC, but for a franchisor to make any financial claim, it must be listed in Item 19. Some brands, including Teriyaki Madness, also publish it directly on their website (in fact, ours is on the homepage). If the AUV is not explicitly listed, it may be called ‘Average Gross Sales.’

What’s important to note is that not every brand’s AUV is built the same way, even though the formula looks identical on paper. The FTC requires that any financial figures a franchisor shares be included in the FDD and explain where the numbers come from, but it doesn’t require every brand to sample the same set of units or the same time window.

Take this hypothetical example from a Franchise Times article: a burger franchise advertised a $1.8 million AUV. Check the footnotes and you might find it only counts locations open five years or longer — excluding newer units still ramping up, plus any that closed before hitting year five.

So before comparing one brand’s AUV to another’s, check a few things in the footnotes:

• Which units are counted? All locations, or only franchised ones? Only stores open a full year, or everything, including brand-new units still ramping up?
• What time period? The most recent year, or an average across several years?
• What counts as “sales”? Delivery and catering included or excluded? Gift card redemptions counted when purchased or when used?
• What are the fees? It’s never a bad idea to investigate fees and expenses compared to sales. These are listed in items 5, 6, and 7 of an FDD.

Two brands’ AUVs are rarely built from the same inputs, so the number alone isn’t a fair comparison until you know what’s underneath it.

Why AUV Is One of the Most Important Metrics in Franchising

Almost every brand you research will throw numbers at you. AUV stands out from the pack for a few concrete reasons. When a brand chooses to share its AUV, it must support the figure in Item 19 of its FDD and explain how it was calculated. The FTC prohibits franchisors from making unsubstantiated earnings claims, which means an AUV is closer to disclosed financial data than a standalone sales pitch. Still, it needs to be read in context.

It’s a useful starting point for comparing brands in the same category. Once you’ve checked the footnotes on each, AUV gives you a single data point to line them up side by side. It’s often the first thing brands lead with, so it’s worth knowing how to read. Understanding what AUV does and doesn’t tell you means you won’t be dazzled by a big number that doesn’t hold up once you factor in costs.

Other Metrics to Weigh Alongside AUV

AUV is a strong starting point, but it isn’t the finish line. Before you commit to a brand, put it in context with:

• Investment-to-AUV ratio. A $1 million AUV means something very different against a $500,000 investment than it does against a $900,000 one.
• Same-store sales growth. How existing locations are trending year over year.
• Unit growth. How many locations the brand is adding (or losing) over time. Steady growth backs up a strong AUV; AUV growing faster than same-store sales can mean new units are simply outperforming older ones.
• Unit profit margin. What’s actually left over after costs.
• Support system. Training, marketing guidance, and ongoing coaching directly shape whether you can hit that AUV yourself.

A strong AUV also isn’t enough on its own. Don’t be won over by a franchisor that advertises big numbers but doesn’t deliver. In addition to the financial return and longevity potential of the brand, aspects of the franchise relationship such as shared values and the support system are also key contributors to your success.

AUV vs. Profit: Know the Difference

AUV is gross sales. It is not profit. Gross sales is the money coming in the door. Profit is what’s left after food costs, labor, rent, royalties, marketing fees, and everything else. Two brands can post the exact same AUV and land in very different places on profitability.

This is also why any earnings or sales figure a franchisor shares has to be included in Item 19 of the FDD. If someone hands you a profitability number that isn’t in that document, treat it as a flag, not a selling point. And when in doubt: talk to current franchisees. They’ll tell you whether the numbers on paper match what happens in the store.

What Franchisors Look for in Growth-Oriented Owners

Franchisors often look for candidates whose experience and existing infrastructure can support strong operations and future growth:

• Seasoned Business Owners. Franchisors often prioritize candidates who have already run a business. Experienced operators typically need less startup coaching, which is why many brands weight business background heavily in the approval process.

• Multi-Unit, Multi-Brand Operators (MUMBOs). Some brands also target owners who already run multiple units of other franchise concepts. These operators arrive with infrastructure in place — staffing pipelines, real estate relationships, back-office systems — which is why franchisors often look to them when building out a new market.

How Teriyaki Madness’s AUV Stacks Up

At Teriyaki Madness, we’re all about transparency. Our locations are running an AUV of $1,113,760*, putting the brand in strong competition with other leading fast casual concepts. TMAD opened 46 new shops in 2025 alone, with nearly 50 more projected to open in 2026, and now operates across more than 40 states, plus El Salvador! We also publish gross sales broken into quartiles so prospective franchisees can see the full range of performance across the system, not just the headline number. It’s what you should expect to see from every franchisor.

That kind of growth can be especially appealing to prospective multi-unit owners. And beyond the numbers, TMAD backs franchisees with hands-on training, marketing support, and a system built to scale whether you’re opening your first unit or your fifth.

Want the full picture, including Item 19 and current investment ranges? Download the Franchise Report to see exactly how the numbers work.

*Refer to our current Franchise Disclosure Document for the most up-to-date figures.