I have recently been looking into franchises such as McDonalds.
I am a bit confused on some of the figures they claim...on average each location pulls in about 2.6mil in gross revenue, and claims to earn approx. 200K net profit. I did a search for McDonalds profit margin, and found that there margins are 6.4%...something isn't adding up? This would give me a profit of roughly $166K without taking expenses out? I must be doing something wrong or misinterpreting the information? Can anyone provide some feedback? Thanks a lot.
I am a bit confused on some of the figures they claim...on average each location pulls in about 2.6mil in gross revenue, and claims to earn approx. 200K net profit. I did a search for McDonalds profit margin, and found that there margins are 6.4%...something isn't adding up? This would give me a profit of roughly $166K without taking expenses out? I must be doing something wrong or misinterpreting the information? Can anyone provide some feedback? Thanks a lot.
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