October 2014
Intermediate to advanced
618 pages
19h 56m
English
Content preview from Restaurant Franchising, 3rd Edition
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Franchisee/Franchisor/Franchise Selection 205
Average Income: The average income of franchisees can also be mis-
leading. Some of the reasons mentioned under sample size applies to average
income also. It again can give a general idea but it can be deceptive since it
shows an average income of franchisees whose business characteristics may
be entirely different.
Gross Sales: Gross sales fi gures do not really tell about the franchisees’
actual costs or profi ts. An outlet with high gross sales revenue may be losing
money because of high overhead, rent, and other expenses.
Net profi ts: This information is often not available to the franchisors.
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