Number of Franchised Restaurants
This equals the total number of restaurants that are operated by franchisees.
Franchised restaurants pay the restaurant company licensing and royalties fees to operate the restaurant. For example, a proprietor that wishes to open a Taco Bell franchise pays Yum! Brands (YUM) a fixed fee for licensing rights as well as a percentage of monthly sales (usually 4%-6%). Although franchised restaurants are not as profitable for the parent company, franchised restaurants minimize the risk for the parent company and facilitate rapid expansion.