How a franchisor and a franchisee split the money
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The prompt
An illustrative franchised burger restaurant in the US sells USD 3,000 thousand a year. The franchisee pays a 5 percent royalty and 4 percent into the brand marketing fund. Before these fees, the restaurant earns an 18 percent margin. What does the franchisee keep, and what does a franchisor with 1,000 such restaurants earn in royalties?
Practice with a partner
1. Send the interviewer link to a friend. They read the case aloud and hold the answers.
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3. Speak the case out loud. Your partner shares data when you ask, then scores you with the rubric.
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Candidate view
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Clarifying questions, with the interviewer's answers
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