this post was submitted on 16 Jan 2024
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chapotraphouse
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I think they actually get almost all of the profits of the store. The fast food company makes money from the franchise license, rent, and supplying the equipment and food
Correct. The corp gets paid first out of the gross, totally protected. Franchisees only wiggle room to increase their profit is labor costs.
The franchise sets the food prices on both sides too so they can precisely control profitability.
I wonder if anyone has ever looked into the idea that labor is the source of all profits