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Old 01-10-2018, 07:22 PM   #11
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Oh ok, seems there are a lot, some people have a business then think how much they could make by selling franchises, it's purely for profit and they have no interest in their success or not. Some companies are more into if they succeed (like McDonalds). I guess it's really about research research research and realize there are no guarantees.
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Old 01-10-2018, 07:31 PM   #12
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Oh ok, seems there are a lot, some people have a business then think how much they could make by selling franchises, it's purely for profit and they have no interest in their success or not. Some companies are more into if they succeed (like McDonalds). I guess it's really about research research research and realize there are no guarantees.
I imagine most are interested in a buyers long term success for both direct and indirect benefits to the seller. That doesn't mean they don't minimize their financial risk by pushing the risk to the buyer.

IOW, they want you to succeed. But if you fail, they won't be losing anything.
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Old 01-11-2018, 04:00 AM   #13
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I don't care what you do as long as you don't start thinking, "Hey! I'll open a music store." You can make a small fortune by opening a music store, but first, you'll have to start with a large fortune. It will soon turn into a small fortune. The internet has pretty much wiped out the MOM and POP music stores. Whatever you do, you should go into a business that you already know. Unless you're in your twenties, learning as you go is not a good option. An example would be..... I could open a guitar tech shop and do quite well because there was only one other guitar tech shop that had a better reputation than me and he and I both have retired. There is now a void in our area that needs to be filled. I'm too old and comfortable to bother with running a business. I can tell you one thing for sure. It only takes one unhappy customer to cost you 10 other customers. When I was guitar teching, I made sure every customer went away happy and told each one that if they needed any extra tweeks, to bring it back and I would tweek it for free. I had two or three come back about a week later to raise or lower their string action to suit their playing style.
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Old 01-11-2018, 10:25 PM   #14
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So if you recall I was laid off just before Thanksgiving and so far no luck. It also appears if I do get an offer it will probably be much less than my previous salary which for me doesn't mean I go into foreclosure or anything, just that my plans change drastically and the future looks to be working forever or eventually selling our home (we got married last month BTW) so we can retire at a reasonable age. So another option is to not just go back working a 9-5 job for a corporation but something different with a possible better income and longevity, something we can do into retirement.

So I was looking into buying a franchise, not a MD or Subway I can't afford those ( I actually wanted to buy a Subway way back in the 80's or so but didn't have the cash....sadly it was only like $25k which is peanuts today and probably may have made me rich today) but something similar.

It appears in some ways you own your own business and other ways you don't...you still are being controlled by a corporation which is good and bad. I tried to get information about the one I am interested in but I have to file paperwork to get anything like the simple question most people have is "How much income can I expect" meaning what will my personal bank account look each month. If I am bringing home less than a 9-5 job why bother especially since they want $100k cash and $300k net worth ( I assume in case they need to sue you they know they can).

If I could make $100k a year after all is said and done I'd be happy??

I think it would be a refreshing change and something I would enjoy. So what do you think? Do you know any personal success stories or failures?

My sister worked with a couple who opened a water ice stand years ago...today she said they are filthy rich and have so much money they can actually afford to GIVE money away.
I'm in north Jersey but have a house in Little egg harbor in south Jersey too. I was a manager for several dunkin donuts stores 20 years ago and almost bought 3 of them until I went to DDU (dunkin donuts uni). That told me all I needed to know about that franchise and I backed out of my deal.

First no franchise can tell you what you can expect as far as income goes, there are too many variables, including how good/bad you are as an owner. The economy could tank and you could get zero, it could take off and you could make a mint.

Rents are extremely high, landlords caught on years ago and most times ask top dollar for their space. Help/staff will steal from you, are you prepared to work 80 hrs a week, maybe more? Do you know how to keep books, are you a people person, are you handy? Do you know how to find repair people that won't rip you off?

I am glad to speak to you extensively on this subject, if you care to send me a PM

On the up side, if you do well in whatever business you pick, you can always drop the company name and keep the 10% royalties you pay them once you are established on your own with locals. You will have to spend some of that on advertising and promotions.

I didn't read what business your looking at, don't be afraid to disclose it here, I doubt the idea is that unique that someone will steal it from you. Keep this in mind, if your having trouble with the company before they have your money, think how rough it will be once they have you in their pocket?
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Old 01-13-2018, 07:30 AM   #15
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From playing lots of gigs I notice pizza places always are a busy business. Other places are spotty - some do well some do poorly. But pizza does well around here.

You might consider going to pizza school just to find a job. That's what I'd do if I was looking for work.
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Old 01-13-2018, 04:44 PM   #16
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There's a pizza school? Now that is some homework I could get into!
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Old 01-15-2018, 04:50 PM   #17
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Pizza has baffled me as a business model. In the 70's Pizza from a Pizza place cost about the same as it does now. That would indicate to me that there is little profit now compared to in the past. You would have to sell a lot of 10.00 large pizzas to make a profit. It's an issue of volume. You can't compete with the big chains pricing. Large 1 topping from Domino's is now 7.99.

Here in my small town there are 9 Pizza places, there used to be 10. Rossani's was the best in town real Italian family owned and very tasty. Howver at 18.00 for a large 1 topping they went under. They had a small following but couldn't compete in the the market demographic of our small town. Largely a bedroom community of about 50,000 people with families to feed. They commute into the Phoenix Metro to work and live out where it's more affordable.

Know your market, just because something is hugely successful in one location doesn't mean it won't fall flat 30 miles away.
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Old 01-16-2018, 02:11 AM   #18
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As someone who has been in business finance for over 35 years as a profession, I have seen lots of franchise business models and lots of non-franchise business models. I have seen how well they perform and the pro's and con's of each.

Essentially what has already been said it pretty much spot on, it is very much up to you to do your research and due diligence on the specific franchise model you are looking to adopt and if it will work in your particular area. There is no substitute for research and planning.

The biggest sales pitch for a franchise is that they are selling you a proven business template. That may or may not be the case in reality, its still up to you to check it all out. Obviously the big brand names have a greater historical record of success, hence why the cost of those franchises are much higher. But a newer franchise may have just had limited success in a local area and looking to expand. Its up to you to ascertain "why" they were successful and if you can replicate that success in your area with different personnel.

Banks deal with franchise business financing all the time, so one reasonable indicator of how good a particular franchise is perceived by the bank is if it is on any "accredited Franchise" list that bank may have. This is where the bank knows the franchise business very well and is prepared to take a risk against the value of any new franchise (i.e. lend to you based on the value of the franchise rather than just taking collateral over your house). If you ask the franchisor if they have any special arrangements with any banks this might give you an extra insight into the viability of the franchise.

Be warned however, that plenty of accredited franchises still fail. The biggest cause of failure of a business is poor management. Which certainly supports the comments that you will be working long hours initially if you want it to succeed.

Good luck with it all, I hope it works out for you, but make sure you do as much research as you possibly can before you commit to anything. If you know an accountant or finance person that you trust get them to run their eyes over any financials or cash flow projections for you, so as to get maximum insight into how the business works financially. If you are dealing with stock and debtors/creditors your cash cycle needs to be clearly understood, or you can easily come unstuck.
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Old 01-16-2018, 03:03 AM   #19
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Pizza has baffled me as a business model. In the 70's Pizza from a Pizza place cost about the same as it does now. That would indicate to me that there is little profit now compared to in the past. You would have to sell a lot of 10.00 large pizzas to make a profit. It's an issue of volume. You can't compete with the big chains pricing. Large 1 topping from Domino's is now 7.99.

Here in my small town there are 9 Pizza places, there used to be 10. Rossani's was the best in town real Italian family owned and very tasty. Howver at 18.00 for a large 1 topping they went under. They had a small following but couldn't compete in the the market demographic of our small town. Largely a bedroom community of about 50,000 people with families to feed. They commute into the Phoenix Metro to work and live out where it's more affordable.

Know your market, just because something is hugely successful in one location doesn't mean it won't fall flat 30 miles away.
Kind of like the Costco hotdog. It's been the same price for $25 years now!
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Old 01-16-2018, 03:18 AM   #20
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Before my Dad and his business partner opened their restaurant they looked heavily into franchises. The initial investment is huge and in most cases they require you to purchase the supplies to build a new building. That's if they're even looking to expand to where you live.
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