On: A $1k Wheelchair

[hollerith]

>McDonald’s captures 80% of revenue and leaves only 20% to franchisees.

Most of the revenue goes to paying employees, real estate cost (rent or depreciation), energy cost and cost of ingredients. You mean, "captures 80% of the net income". Or profit.

[dangus → hollerith]

Yeah I think you’re right.

The numbers I’ve been able to find are:

4-5% of gross sales as franchise fee

8-12% of gross sales as rent (McDonald’s corporate is often the landlord)

I.e., 12-20% of gross sales are going to McDonald’s.