> Note that given the franchise model, that's 50k profit on basically no expenses
Profit is already past expenses.
> That's just the tax they are charging the franchises for the privilege of calling themselves a McDonalds store.
McDonalds does plenty for the franchise restaurants:
1. Brand recognition and marketing which bring in tons of customers, without the franchise owner having to spend a cent.
2. Recipes that will sell. Franchise owners does not have to know anything about cooking, people's tastes etc. It's all covered by McDonald's R&D.
3. Efficient operations. Similar to the above, franchise owner's does not need to know anything about running an efficient restaurant. All equipment design as well as day-to-day operational procedures are standardized, highly efficient, and provided by McDonalds.
4. Employee training.
5. Restaurant interior design. Again, provided by McDonald - no need to think about it, no area to make costly mistakes by inexperienced owner.
6. Supplies. No need to worry about managing supplies and suppliers - it's all provided by McDonalds.
In fact, McDonalds does so much for a franchise owner that he's somewhat closer to a glorified manager with a profit sharing agreement, that to a real business owner.
Profit is already past expenses.
> That's just the tax they are charging the franchises for the privilege of calling themselves a McDonalds store.
McDonalds does plenty for the franchise restaurants:
1. Brand recognition and marketing which bring in tons of customers, without the franchise owner having to spend a cent.
2. Recipes that will sell. Franchise owners does not have to know anything about cooking, people's tastes etc. It's all covered by McDonald's R&D.
3. Efficient operations. Similar to the above, franchise owner's does not need to know anything about running an efficient restaurant. All equipment design as well as day-to-day operational procedures are standardized, highly efficient, and provided by McDonalds.
4. Employee training.
5. Restaurant interior design. Again, provided by McDonald - no need to think about it, no area to make costly mistakes by inexperienced owner.
6. Supplies. No need to worry about managing supplies and suppliers - it's all provided by McDonalds.
In fact, McDonalds does so much for a franchise owner that he's somewhat closer to a glorified manager with a profit sharing agreement, that to a real business owner.