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How a franchisor and a franchisee split the money
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?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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