A franchise I'm looking at emulating is claiming these figures:
Average gross sales of $860,000 and an average gross profit of $530,000
So, what do these number really mean?
Gross sales - they sell, on average, $860,000 worth of merchandise each year
Gross profit - is the $530,000 just how much they make after deducting the cost of the merchandise? If so, I feel like that's extremely misleading as that's nowhere near profit once you factor in rent expenses, salaries, etc.
To figure out how much I could expect to earn each year, would I have to take the $530,000, then deduct the tax on that, followed by each expense (rent, salary, etc) to get a final number?
Thanks for any clarification,
Jeremy
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