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Foreign operations contribute around 51% of system wide sales and about 65% of operating profits. Its main source of income is through franchise fees. Under the conventional franchise arrangement, franchisees provide capital by initially investing in the equipment, signs, seating and decor of their restaurant businesses, and by reinvesting in the business over time. The Company shares the investment by generally owning or leasing the land and building. Franchisees in the United States generally have the option to own new restaurant buildings while leasing the land from the Company. Franchisees contribute to the Company's revenue stream through payment of rent and service fees based upon a percentage of sales, with specified minimum payments, along with initial fees...
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