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What is the net profit margin for a fast...

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Old 03-12-2007, 12:25 PM
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Default What is the net profit margin for a fast...

...food franchise? Or more specifically a pizza franchise? I have heard up to 30% but that seems extremely high to me. I have talked with store managers that swear 25% to 30% net profit margins in their pizza franchises.
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Old 03-12-2007, 02:33 PM
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My boss, who owns the Blackjack Pizza in Montbello, Denver, CO, earns about 10-12 %. A lot will depend upon your fixed costs and advertising.
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Old 03-12-2007, 06:43 PM
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A well-known pizza franchise is actually a very good thing. You see, you're pretty much buying a business that already has clients. The downside of franchises is exactly that - they are franchises. You have to pay for them. But if you're willing to take the punch, and if you can, your return will come NO MATTER WHAT. McDonalds actually guarantees a return of your investment within the first five years.Whoever you want to partner with, learn about their business system. Make sure you understand it. Don't believe the hype. Scout the area where the franchise would be located. Read the business model. If it makes sense, and if you can find a way to quantify it, or if you just believe it may actually be true, grab the bull by the horns.That's the entrepreneurial spirit, anyway.
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