Talk of The Villages Florida - View Single Post - Fast Food Chains, The Imposable Wish
Thread: Fast Food Chains, The Imposable Wish
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Old 03-01-2023, 09:20 AM
Zenmama18 Zenmama18 is offline
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Quote:
Originally Posted by FredJacobs View Post
What you may not know is that Costco, BJ's, Sam's, Trader Joe's, Whole Foods, etc. have such buying power that they work on a GROSS profit margin of about 25%. After expenses, the NET profit is about 10-15%. Here, in The Villages, the Developer charges these companies rent based on a percentage of their profit. This is not unusual - many places do this. Now you know why WalMart fights against unionization, why there are no WalMarts in New York City and why there were no Walmarts in New Hampshire until the 1990's.
Are you sure it's not a percentage of the gross? When I worked in retail accounting we charged our lessees a base plus a percentage of gross above that.