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>McDonald’s captures 80% of revenue and leaves only 20% to franchisees. Most of the revenue goes to paying employees, real estate cost (rent or depreciation),
by hollerith 2y ago
>McDonald’s captures 80% of revenue and leaves only 20% to franchisees.
Most of the revenue goes to paying employees, real estate cost (rent or depreciation), energy cost and cost of ingredients. You mean, "captures 80% of the net income". Or profit.
- dangus 2y agoYeah I think you’re right. The numbers I’ve been able to find are: 4-5% of gross sales as franchise fee 8-12% of gross sales as rent (McDonald’s corporate is often the landlord) I.e., 12-20% of gross sales are going to McDonald’s.