Has anyone ever started or thought about starting a food franchise or other type of franchise?

[CHOPTALK]

I was reading Fortune mag the other day and they had an article talking about franchises.

I never really looked into one because for some reason I always had the impression that it would cost 3 to 5 million to start one.

Well according to the story you can have a McDonalds for as little as 250K.
Or a 7eleven for 600K.

Now this is still not chump change, but thats a huge difference from what I thought it would cost.

So my question is, Do you think its profitable to start a franchise in this economy?

I am pretty busy, I would not have the ability to be very hands on.
I would not be completely hands off, but there are times I am out of town for weeks at a time.

Is it hard to hire someone you can trust?


I live in the perfect market for a 7eleven.

I know the perfect spot.
My town was voted one of the top 10 places to start a retail business in the whole country.


My towns unemployment is only 5%, and the average income is among the highest in the South.

Give me some insight.

I have not even begun to look into this yet other then the story I read.

 

[CujoLatte]

That seems awfully cheap for a Mcdonalds franchise? My family owns a restaurant and the hardest part of the business is dealing with the staff! Hiring good people and most importantly someone you can trust.

 

[bigbet1234]

to make real money you would need multiple locations i would think. one 7-11 would be more headache than anything it hink

you usually have to get a % of sales after the initial payment.

I thought about looking into franchising my bakery before I sold it, still wish i had pursued it at times.

 

[jageshpatel]

well u can make a killing on 1 mcd's. the 250 k is a fee, u pay for the the building and investment is all urs, the 250k is a franchise fee, also for mcd's u have to be an employee for a minimum 10 years to be considered. also with mcd's they do they feasability surveys for u, give u the area and location u just gotta come up with the cash. its a sure money maker, its just u have to b an employee for min 10 yrs to qualify

7-11 headache for sure, u need good employees and multiple locations

a cheaper franschise where a lot of people are banking is subway...

ultimately its all about work eithic, u cant invest in one and let it be ran by employees, they will run it down, u have do owner operator or the manager at the location has to have a vested interest in the business....(if u are a small investor and want to grow ur nest egg)

aside from my day job i have a gas station, which i fully own, however its ran on employees, all employees are bonus driven as i give monthly bonues and the manager is the same....yea sure my monthly take in is about 25% less (compared to if i worked there my self) but hey , for 25% less money i dont have to worry about it...i have noticed that there is less theft and the business grows, all employees have a reason to work hard, not for a paycheck but for the bonus incentive...it works, sure less return but a lot less headache....i mean i pay a little bit more than the avg gas station employee and manager, but for me its worth it, good side income and no headache....i guess i got lucky, but ultimatley thats what u have to do....only way u can really grow i think

 

[Dude]

I am totatlly against buying a Franchise. I figure why pay for someone else's idea.. I believe a 7-eleven you have to be liquid for at least 750k and have a net worth exceeding 1 million.. On top of paying for the franchise you have to pay them a percentage of sales each month whether your making money or not. You have to buy all your supplies from them at their prices....There are some cheap ones out there like Subway but an average Subway makes about 50k a year so to be profitable you have to own 3 or 4..

 

[FrankieCarbone]

A better option would be to start your own restaurant and franchise it to others around the country. Look how simple chipotle is, and its a gold mine.

 

[RenoChazz]

I have a friend that owned a Dominoes. You can make some real good money after the loans are paid off. But he was very hands on, and I'd think you'd need to be to ensure success.

 

[celticGreen+]

Subway seems ideal - one delivery a week for even a fairly busy store

 

[hosnatcher]

I hear too many horror stories about people opening up franchises and being forced to sell it back if it is too profitable or if it is not too profitable then they will open up another franchise in the same area. Plus those fast food joints always runs revenue losing specials that you have to honor and if get defiant and not honor the prices then you get bad feedback from customers.

I hear the lunch truck business is where it is at today.

 

[VegasJogger]

I thought McDs was btween 1-2mil to start?

 

[Santo]

Has Boost Juice made it to the States yet? If it has that would be a franchise worth looking into (with people going healthy). If it hasn't, well I'd look into it harder.

 

[CHOPTALK]

yea, there is a reason why you see a subway every 500 feet. Startup cost is less then 100K.
The only problem is, I am literally walking distance to 5 subways.
I know of one spot in town you can almost see 3 subways at the same time.
I cant believe subway does such a poor job protecting there franchisees.

Subway seems ideal - one delivery a week for even a fairly busy store

 

[CHOPTALK]

I dont know about Boost Juice, but by the way you are describing it, there are a ton of competitors just like them.
But I will look into them.
Do you think this would work in a mall food court?

Has Boost Juice made it to the States yet? If it has that would be a franchise worth looking into (with people going healthy). If it hasn't, well I'd look into it harder.

 

[gmenknicks]

You cannot own a franchise or pretty much any business for that matter without being hands on all the time especially in the beggining stages. Nobody will care about the business as much as you do and you will be robbed. I see this all the time in my line of work. I develop and manage shopping centers so I deal with franchisees all time. If you are going to buy a franchise its critiical t understand how the corporate will support you moving forward, what the royalties and advertising fees are, how often you must remodel , etc..

Also its very rare for a franchisee to keep the store for more than 5 years. They almost always sell bc revenue never reached what was promised...Having said all that I will tell you the 2 most succesfull food and non food franchises that I have seen in my centers

1. Massage Envy
2. Cartridge Word

1. Jersey Mikes Subs
2. Little Ceasers

 

[SSI]

ive owned a convenience store for over 15yrs, non franchise...

i wouldnt own a franchise... no need, buy you one and build it.... its a competitive market, so good luck..


Falcon