[butchfran323]

How much of a percentage of profits do coffee franchisers make on the sale of equipment and coffee to the franchisees for running its business as compared to the ~5% gross sales that franchisees pay the franchisers from the royalty fee. By example, if a franchisee like Peets generates 1M in gross sales per year, it pays to Peets a 5% royalty fee, i.e. $50,000.00. How much additional profits is Peets the franchiser making from the sale of machines and coffee. What's the usual ratio if there is any?

[justinblue111]

Never thought about this case. I think its not much they can make out other then royalty fee. Actually I never had a chance to dal with coffee franchise so don't have much idea. But sure I will try to figure out this query and get you an answer soon.

[rita07]

How much of a % of profits do coffee Franchisers make on the sale of equipment and coffee vs the royalty fee?