Average Unit Volume (AUV)

Average Unit Volume (AUV) is the mean annual revenue generated by a single franchise location across the entire franchise system. Often disclosed in Item 19 of the FDD, AUV is one of the most widely cited benchmarks for comparing franchise brands and assessing earning potential. AUV can be calculated for all locations, only franchised locations, or only locations open for a full year (mature AUV). Investors should be cautious of AUV figures that include unusually high-performing outlier locations or company-owned stores that may have different economics than franchised units. Median unit volume is often a more reliable indicator than mean AUV because it is not distorted by a small number of very high-revenue locations.