Hi Plough - the 8% included the 2% marketing fee for advertising...

Hi Plough - the 8% included the 2% marketing fee for advertising etc. Yes it is 8% of sales revenue.

This is pretty standard as far as I could see for franchises. As I said if we look at McDonalds they take 9.25% plus a monthly rent of a fixed amount plus a further 1% - this is not rent for premises this is a franchisee rent. McDonalds obviously sell the franchisees their supplies as well because one of the things the franchisee must do is obviously provide food and drink that tastes the same as at every other McDonalds so ingredients have to be the same.

Is franchising a good model well it will really depend on the business. Some will end up with a lot more than 25K to live off. Others won't. Location is gonna make a huge difference. If you think my friend who has the Crust Gourmet Pizza Bar in Neutral bay is working long hours to end up with 25K - guess again.

There is gonna be huge variations between brands, locations, level of success as to just how much people are making for the work they do. I totally accept there will be some brand stores in some locations not doing well but it is a mistake to think you can claim 2500+ franchises are all doing the same.