Demystifying Your Profit & Loss Statement — A Guide for Franchisees

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The following excerpt is from franchise expert Mark Siebert’s book The Multiplier Model. Buy it now.

When I hold exploratory meetings with clients, I typically ask about various items on the profit and loss (P&L) — also called an income statement — without actually referring to the document itself. I’ll usually ask about the cost of goods sold, their labor, or some other charge.

Here’s how the responses can drastically differ: Type A” business owners usually give me a very specific number — often down to the decimal point. “Type B” owners usually give me a range — sometimes narrow and sometimes

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