Final answer:
Given that a franchise restaurant manager's income is directly linked to profits, we might expect higher profits in franchise restaurants compared to company-owned restaurants where managers are salaried. This is because financial incentives can motivate managers to improve restaurant performance.
Step-by-step explanation:
Given that the income for a franchise restaurant manager is directly tied to profits while the income for the manager of a company-owned restaurant is paid a flat fee, we might expect profits to be higher in franchise restaurants. This presumption hin_ges on the traditional economic theory that financial incentives drive better performance.
That is, a manager who benefits directly from the restaurant's profitability may be more motivated to increase efficiencies, reduce costs, provide better customer service, and implement strategies that boost profits compared to a manager who earns a set salary regardless of the restaurant's financial performance. However, this is only an expectation and not a definitive outcome, as various other factors could influence the profitability of the restaurants.