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Just for the sake of shooting the breeze: how much of that $3m goes into COGS and capitalised assets or improvements?
by abalashov 11y ago
Just for the sake of shooting the breeze: how much of that $3m goes into COGS and capitalised assets or improvements?
- patio11 11y agoOff the top of my head: approximately $1 million for land, $1 million for building, $1 million for working capital of which only about $30~50k is COGS. Some of the working capital is machines and other improvements; more than you would expect is salaries for employees for the first few months. (n.b. Some of this is fronted by McDonalds, some by the franchisee. McDonalds has an interesting model where they insist on the franchisee being a tenant of theirs, at least domestically -- this turns them into one of the largest commercial real estate options in the world.)
- abalashov 11y agoHuh! $1m for land? Where, in Monaco? What's a McDonald's sit on, 1/4 acre? And I assume the $1m for "building" includes all the branding collateral, signage, custom cabinets, and other expensive to-spec physical accoutrements?