In a June 17, 2009, press release, Noodles & Company says it was named one of the top three restaurants in America by a national magazine for the second time in six months. Parents magazine placed Noodles & Company third on its top 10 list of Best Fast-Causal Family Restaurants. In 2004, Noodles & Company decided to offer franchises for a $35,000 up-front fee and 5% of their annual revenue. Units average more than $1 million in annual sales. As franchisee, how much revenue must be submitted to Noodles & Company with annual sales of $989,675?

For this I'm suppose to use New Value - Previous value/ Previous value x 100 =

I took NV ($989,675) - PV ($35,000) / PV 35,000 x 100 = and got 2727.64 I am sure this is probably wrong unless I was suppose to use the 5% then it would probably be 989,675 - 5% / 5% x 100 = 2000

Question

In a June 17, 2009, press release, Noodles & Company says it was named one of the top three restaurants in America by a national magazine for the second time in six months. Parents magazine placed Noodles & Company third on its top 10 list of Best Fast-Causal Family Restaurants. In 2004, Noodles & Company decided to offer franchises for a $35,000 up-front fee and 5% of their annual revenue. Units average more than $1 million in annual sales. As franchisee, how much revenue must be submitted to Noodles & Company with annual sales of $989,675?

For this I'm suppose to use New Value - Previous value/ Previous value x 100 =

I took NV ($989,675) - PV ($35,000) / PV 35,000 x 100 = and got 2727.64 I am sure this is probably wrong unless I was suppose to use the 5% then it would probably be 989,675 - 5% / 5% x 100 = 2000

anonymous · Answer

I think I figured it out it would be $989,675 x 5% =  49 483.75