what does it cost to open a coffee shop?, page-10

None of this would EVER happen if TWO Things existed.
1. The Rent. The accepted rent ratio in retail is 9% of Turnover. If the tenant pays a constant 9% the tenant will do fine. Over the last ten years it has climbed and the Tax Office NORM is a Published 14%. I give you my personal assurance THIS IS NOT SUSTAINABLE. But many many Shopping Centre tenants are paying up to 23%. Ask a Stockland Leasing Rep. They will DENY it. You only have to see how many vacancies are growing by the day. No sorry you wont. Stockland are very skilful at putting up Camouflaged Hoardings to HIDE those vacancies.
2. If the Franchise Fee was a Percentage of NET PROFIT...............EVERYTHING WOULD BE FIXED IN AN INSTANT. Just ask a McDonalds Franchisee how they feel about 30c icecreams??? Mc Donalds are happy to make the Franchisee take this offer.........."its great for business."