So, if you live in New York City its basically impossible not to run into a Subway or Dunkin Donuts within 1-2 block radius. I am trying to do some casual research just to how there can be so many restaurants of the same type without too many franchise bankruptcies.
Do any one of your families/friends own a franchise business? How is the gross/net profit figures on Subway/DD franchises? What about the cost structure from the parent (I know Subway takes out 8-12% of gross revs but what about DD)? Any other fees? What do these franchises sell at (2x rev?, 4-5x cf?)?
Just curious about these businesses.
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