kkalook Wrote:
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> I asked a manager when they newly opened and was
> told they were all corporate owned. Some of the
> stores in Florida are franchised but are in the
> process of being purchased back by corporate.
When you have a cash cow like Five Guys, you don't franchise. Franchising is a way to dump the startup costs, risk, and labor requirements onto a small family. As a result, they even pay 7-15% revenue direct to the franchisee plus additional fees.
Recap:
Cash cow (Chipotle, Five Guys, Pinkberry) = 15-40% profits, internally funded
Franchise (Quiznos, Dunkin Donuts) = 15% or less profits, funded by franchisee