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re: Chick-Fil-A Operator Income

Posted on 3/21/17 at 2:19 pm to
Posted by baldona
Florida
Member since Feb 2016
20514 posts
Posted on 3/21/17 at 2:19 pm to
quote:

t's then 50 percent of the net profit.


Are you sure on this? Are you saying if net profits are $450k the owner pays CFA half and keeps the other half?

DBF, as said, this is how more and more successful franchises are going. No more McDonalds model where the owner keeps large portions of the profits. There is no reason for the franchise to do that model unless they absolutely have to, and they can usually get investors at the corporate level to buy the new stores and just throw in local management.

I also think part of the reason to not allow "owners" is to maintain control. There's been multiple Franchise models where you get a couple owners that own vast amounts and get quite a bit of power, enough so that their opinion can alter corporate decisions especially when acting together.
This post was edited on 3/21/17 at 2:25 pm
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