Franchise Glossary
Average Unit Volume (AUV)
What is Average Unit Volume (AUV) in franchising?
The average annual revenue generated by a single franchise location, calculated by dividing total system-wide sales by the number of open units. AUV is often disclosed in Item 19 of the FDD and is one of the most widely used benchmarks for comparing franchise opportunities. The critical caveat: AUV measures gross sales, not profit. A franchise with a $1.2 million AUV and 15% operating margins generates very different take-home income than one with the same AUV and 8% margins. Always read the footnotes in Item 19 to understand what is included and excluded.