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.