what is this 20%

If a restaurant owner is looking to franchise and the prompt says “a 20% profit before tax is required to attract franchisees”..what is this 20%? Is this profit margin?

2.3k

Be the first to answer!

Nobody has responded to this question yet.

Top answer

Antonello

Coach

on Aug 26, 2021

McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 7+ years of coaching

Hi, yes, they have to achieve an EBIT/revenue ratio higher than 20%

Best,
Antonello

Want to learn more about this topic or join the discussion?

Sign up for free with PrepLounge and get access to first-hand insights from consulting experts, practical resources for your consulting interview preparation and an international community of candidates. Join the world’s largest case interview community.