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Do you have to purchase 100% of your food and supplies from the franchisor? How much can they mark-up from actual costs? Add this % to the 11% they are charging off the top. Is that more than your expected net?
Compare some product costs and see if they are passing on the purchasing power of combined buying or using your cost of goods as a profit center.
Can your costs go up arbitrarily? Like if the franchisor makes a bad decision and needs more revenue?
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