Outlet fast Cheap and cheerful always plenty of food, offering burgers, kebabs, fried chicken or pizza for those on a budget or in a hurry. There are specialist coffee houses, offers an array of freshly brewed coffee from around the world, along with a tempting choice of muffins, biscuits and cakes. Then there is the franchise restaurants which offer cuisine is more substantial and up-market, often specializing in foods from certain countries such as China, Italy or Japan.
Restaurant franchises entered into franchise agreements, franchisees are given exclusive rights to develop and run a business in certain locations. initial franchise fees are recognized as revenue when all material services and conditions to be done by the head office has been completed, which is generally when the restaurant opens. Franchisee pays royalties to the central office, based on a percentage of gross sales as reported through the franchises' sales system. Royalties are recognized as revenue in the same period with sales of the reporting period.
Franchise companies depend on cash from the sale of franchise and royalty fees from franchise restaurants that are there to support the cost of business. Revenues derived from the sale of franchises, from royalties paid by franchisees and the sale of food and beverages at the restaurant franchise. Revenues can be increased by adding a new company-owned restaurants, selling new franchises and expand the reach and consumption of food and beverage products are sold.
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