Systemwide Sales

The total sales rung up across ALL of a franchised chain's locations -- both company-operated and franchisee-owned -- not just the revenue the parent company itself reports. For a heavily franchised brand (McDonald's, and most fast-food), the company's own reported revenue is a small slice (franchise royalties and rent) of a much larger systemwide sales figure, so systemwide sales is the truer measure of the brand's scale and consumer demand. Systemwide sales growth, driven by comparable sales plus net new units, is the number that ultimately powers the royalty stream, which is why franchisors highlight it even though most of those sales never hit their own income statement.

Related terms

Accounts Payable · Adjusted EBITDA · Adjusted EBITDA Ex-SBC · ADR · ARPU · Average Length Of Stay

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