It tells you how strong and efficient your operations really are—without the distractions of debt, taxes, or accounting methods clouding the picture.

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.

That might sound like finance-speak, but it’s a clear look at how your business performs from an operational standpoint.

Why EBITDA Matters (Especially for Franchise Owners)

Whether you’re running a franchise or another kind of small business, EBITDA gives you a clean, apples-to-apples look at profitability.

Here’s why you should be tracking it:

✔ It shows your real profitability from daily operations—not inflated or deflated by taxes or loans.

✔ It helps you benchmark against other franchisees or businesses in your industry.

✔ It’s the number lenders, investors, and buyers care most about when you’re looking to grow, sell, or secure funding.

Use EBITDA to Make Smarter Business Decisions

If your EBITDA is growing, it’s a sign that your business is getting stronger and more efficient.

If it’s shrinking, it’s a cue to investigate: are costs creeping up? Are you pricing correctly? Is something broken in your operations?

Knowing your EBITDA means you’re in control—and can make informed, confident decisions.