4 ms·

Sorry, it took me a moment to stop laughing. Revenue is not profit for starters, and "profit" can be defined in so many ways. A more accurate representation for

by greedo 10y ago

Sorry, it took me a moment to stop laughing. Revenue is not profit for starters, and "profit" can be defined in so many ways. A more accurate representation for a franchisee is "total operating income" which is usually between 5-10% of net sales. This is what the owner/operator takes home before taxes. With net sales averaging $2.7m, that take home is usually around $150K. Definitely not peanuts, but considering the cost of a franchise and the amount of work involved, not living high on the hog.

johnwheeler 10y ago
The statement off the McDonalds website doesn't imply revenue = profit. There are a variety of net margins that differ by industry, and I wouldn't be surprised if the net income (what you call "take home pay") would be $150K. The franchising royalties would be deducted before that net income. $150,000K * 5 is enough to live "high on the hog", especially since you wouldn't have to save it given you own 5 McDonalds you could sell, probably for a large profit down the line too.
- greedo 10y ago
  Sure if you magically own five franchises; in that case you've already invested at least $5m, if not double that. I can't find the link you're referencing, since the first return on Google isn't linked to McDonalds directly, but McDonalds franchisees and managers refer to one measure of "profit" as profits after controllables (PAC). This is nothing like net operating income.
  - johnwheeler 10y ago
    > Sure if you magically own five franchises Please refer to the parent thread, where we're talking about what you'd do with $5M. You really should read the conversation and get background on it before you jump onboard and try making others look stupid. You make yourself look dumb, or a troll, or both.
    - greedo 10y ago
      You stated completely incorrect info on the average profit of a US based McDonalds. Sorry to point that out to you.

by greedo 10y ago

johnwheeler 10y ago

The statement off the McDonalds website doesn't imply revenue = profit. There are a variety of net margins that differ by industry, and I wouldn't be surprised if the net income (what you call "take home pay") would be $150K. The franchising royalties would be deducted before that net income. $150,000K * 5 is enough to live "high on the hog", especially since you wouldn't have to save it given you own 5 McDonalds you could sell, probably for a large profit down the line too.

greedo 10y ago
Sure if you magically own five franchises; in that case you've already invested at least $5m, if not double that. I can't find the link you're referencing, since the first return on Google isn't linked to McDonalds directly, but McDonalds franchisees and managers refer to one measure of "profit" as profits after controllables (PAC). This is nothing like net operating income.
- johnwheeler 10y ago
  > Sure if you magically own five franchises Please refer to the parent thread, where we're talking about what you'd do with $5M. You really should read the conversation and get background on it before you jump onboard and try making others look stupid. You make yourself look dumb, or a troll, or both.
  - greedo 10y ago
    You stated completely incorrect info on the average profit of a US based McDonalds. Sorry to point that out to you.