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Rutledge: Franchisor fees often slash expected 30% bottom-line margins down to 10%

Tom Rutledge · Accounting Is Not a Numbers Game - Tom Rutledge on Why · Apr 10, 2024 · at 17:19

Tom Rutledge, co-owner of RDMS Group, discusses the hidden economics and fees that diminish profitability for restaurant franchisees.

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“Your bottom line isn't nearly what you thought it would be. You were expecting 30% and it's 10, for example, because of all the various ways you have to pay the franchisor.”

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