what is this 20%

business model
New answer on Aug 26, 2021
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Anonymous A asked on Aug 26, 2021

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? 

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Antonello
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replied on Aug 26, 2021
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

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

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Antonello

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Antonello

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