Let's talk about becoming a franchise owner
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My best friend irl is actually opening his very first franchise right now. It's a rent to own store called Best Homes. They're mostly canada and east coast, he's one of the first to get up territories along the west coast. It's pretty cool to see all the ins and outs of starting a franchise. I've owned a successful BNM retail store for 8 years now but never franchised something. It's like a whole new beast.
General question much?
This is my opinion of most franchises: the headaches, risks and responsibilities associated with being a business owner with the earnings and restrictions of being an employee.
I.e. many of the negatives of being a business owner + many of the negatives of being an employee, with few of the benefits of either.
This is my opinion of most franchises: the headaches, risks and responsibilities associated with being a business owner with the earnings and restrictions of being an employee.
I.e. many of the negatives of being a business owner + many of the negatives of being an employee, with few of the benefits of either.
Not sure about anywhere else, but in the UK you have to go through months of training to open up a mcd's franchise, have to be involved in the day to day running of the biz and aren't allowed any other businesses. Pretty sucky for us IM'ers where franchises would be a good way to invest versus our main source of income.
At OP:
I assume you're talking about being a franchisee rather than a franchisor. I've never been a franchisee, but know many who have. A few thoughts...
1. It's impossible to say whether being a franchisee is a good idea without knowing the business name, coverage in the locale you're thinking about, the numbers, restrictions (oh, the restrictions!), and the franchisor's marketing model (did I mention the restrictions?).
2. You probably know this, but "purchase" prices are based on popularity. Remember when a Krispy Kreme franchise in CA was going for $1 million plus documentation of major assets? lol
3. Don't dismiss the percentage you'll be paying on revenues. Sometimes, it's low. Sometimes, it's highway robbery. (Great if you're the franchisor, of course.) If it's the latter, you'll be regretting life.
Talk to a few franchisees. Not the guys that run the McDs and Taco Bells. A lot of those guys are locked into prime real estate. Talk to smaller guys - unless you're buying a McDs, and if so, you'll need several to bring in the bucks. If you can, speak with a few that blew out, too. Ask 'em what happened.
I assume you're talking about being a franchisee rather than a franchisor. I've never been a franchisee, but know many who have. A few thoughts...
1. It's impossible to say whether being a franchisee is a good idea without knowing the business name, coverage in the locale you're thinking about, the numbers, restrictions (oh, the restrictions!), and the franchisor's marketing model (did I mention the restrictions?).
2. You probably know this, but "purchase" prices are based on popularity. Remember when a Krispy Kreme franchise in CA was going for $1 million plus documentation of major assets? lol
3. Don't dismiss the percentage you'll be paying on revenues. Sometimes, it's low. Sometimes, it's highway robbery. (Great if you're the franchisor, of course.) If it's the latter, you'll be regretting life.
Talk to a few franchisees. Not the guys that run the McDs and Taco Bells. A lot of those guys are locked into prime real estate. Talk to smaller guys - unless you're buying a McDs, and if so, you'll need several to bring in the bucks. If you can, speak with a few that blew out, too. Ask 'em what happened.
I heard that you need a lot of them to actually make (what I would consider) real money. Like regions of them.
Dunno, have considered it as a jump into the tangible business sector. Kinda busy now, not sure what I'm going to do yet. I may buy some manufacturing companies or something.
Dunno, have considered it as a jump into the tangible business sector. Kinda busy now, not sure what I'm going to do yet. I may buy some manufacturing companies or something.
A friend of mine used to run one of the big BK franchises in the UK. They do make a ton of money done right, but you need at least 3 restaurants to be profitable. You'll also need to work insanely hard on them for quite a while.
A lot of franchises are a much better deal for the franchisor than the franchisee. Unless they have a really strong brand that will boost sales (like McD's, BK or KFC), it probably makes more sense to just start your own thing.
A lot of franchises are a much better deal for the franchisor than the franchisee. Unless they have a really strong brand that will boost sales (like McD's, BK or KFC), it probably makes more sense to just start your own thing.
Not really, you need to have the right retail experience. You gonna have to apply to it like you apply for a Job. Bio Data, interviews, the whole nine Yards, and they will match you to a McD franchisee that is opening up or something.
Many of the franchisees end up owning several locations, and this is what they prefer too.
My dream is to own a couple dozen McDs down the line
Run Local coupons, generate leads, email them woohaa
The only two franchises i would consider owning:
1) McDonalds
2) Tim Hortons
I know people that own 3-10 of both and even the ones with 3 I am talking SERIOUS loot.
1) McDonalds
2) Tim Hortons
I know people that own 3-10 of both and even the ones with 3 I am talking SERIOUS loot.
I have a friend who owned a Maccers Franchise in Australia NSW. he made a ridiculous amount of money but he was literally the whipping bitch. You have to follow whatever the franchisor says such as the design of the store right down to printing the logo and sponsors on the cups.
It's not even a good idea to get your feet wet because in many of the contracts it says you cannot own or operate a business in that same industry for whoever many years (it reduces the competition quite a bit and leaves no other option).
My final advice: start your own business. Do some branding work and build customer relations. better yet start networking asap. failing that SE warrior and noZaw have the right idea IM all the way. heck if you were smart you would combine the two ideas
It's not even a good idea to get your feet wet because in many of the contracts it says you cannot own or operate a business in that same industry for whoever many years (it reduces the competition quite a bit and leaves no other option).
My final advice: start your own business. Do some branding work and build customer relations. better yet start networking asap. failing that SE warrior and noZaw have the right idea IM all the way. heck if you were smart you would combine the two ideas