McDonalds and Buffalo Wild Wings: Comparing two restaurant chains.

McDonalds Corporation franchises and operates more than 30,000 fast-service restaurants in 119 countries. Buffalo Wild Wings franchises and operates more than 500 restaurants in the United States. Buffalo Wild Wings features chicken wings and a full bar in its restaurants.

Financial information for each company follows. EBI denotes after-tax earnings before interest

Buffalo Wild Wings
	2007	2008	2009	2010	2011
Number of stores operating at year end
Company owned	161	197	259	319	319
franchised	332	326	420	473	498
Revenue in Millions
Company owned Stores		379.7	488.7	555.2	717.4
Franchise fees		42.7	50.2	58.1	67.1
Total		422.4	538.9	613.3	784.5

McDonalds
	2007	2008	2009	2010	2011
Number of stores operating at year end
Company owned	6,906	6502	6262	6399	6435
franchised	25,465	25,465	26,216	26,338	27,075
Revenue in Millions
Company owned Stores		16,560.9	15,458.5	16,233.3	18,292.8
Franchise fees		6,961.5	7,286.2	7,841.3	8,713.2
Total		23,522.4	22,744.7	24,074.6	27,006.0

Required:

Assume that for both companies sales at company-owned stores are the same (on a per store basis) as sales for the same company's franchised stores. Estimate each company 's franchise fee rate, which is stated as a percentage of each franchisse's sales revenue.