RBD - Restaurant Brands

[Snoopy]

When they hock off a Pizza Hut store to a private owner do they collect any ongoing franchise fees from the new owner

If so where does this shoe in the accounts .... anybody know

Hocking off something making a loss .... but still clipping the ticket on the way through for use of the name should be +ve for RBD .... yes?

Winner the reason that certain Pizza Huts are being sold is that RBD management have the view those business units cannot be profitable under the RBD corporate model. When a PH is sold off by RBD, then RBD wipes its hand of it and the new owner pays any franchise fees due to YUM directly.

However with a national chain like this there is a single NZ nationwide marketing umbrella that covers all NZ PH outlets. I believe that RBD does control this. So some of those YUM franchise fees will find their way back into RBD coffers as a way for those new franchisees to pay their share of the nationwide advertising costs.

The answer to your question is yes there should be some ongoing economies of advertising scale benefits to RBD as a result of these new franchisees pumping up the RBD marketing department. I suspect it will show up under that catchall header 'other income'.

Nevertheless the real benefits once a PH is sold will flow mainly to master franchise holder YUM, not RBD.

SNOOPY