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Old 09-07-2011, 03:08 AM  
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Franchising

I was looking into starting a franchise when I get out of the military. I'd love to hear from someone who's been there and done that, as it always helps to hear some experience first-hand.

I'd love to know which franchise you used, what your "franchise fee" included, as well as how the whole process went with picking a business spot, and how well the actual franchise company helped you along with the whole process.

If you've just got some second-hand experience, or are well-versed on the subject, I'd also be open to hearing that!

Thanks guys!
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Old 09-07-2011, 09:15 AM  
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What are specifically looking to do?

Just make money?
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Old 09-07-2011, 08:49 PM  
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I ran a small business for 17 years that provided services to some franchises,
mainly restaurants, and also competed with some. Most of them that I saw failed withing the first 1-2 years. The main reason was that franchise people advertise and promote their stores as "anyone can do it" and that's just not true. You must have the experience and knowledge of that business to
succeed. Another problem is that they have to approve the location and require specific designs that take time, and they are not familiar wit the area. Just last week I noticed in our small city two frozen yogurt franchises going in right across the street from each other! Apparently neither knew about the other.
Also, a bad time to be opening in the fall in our climate.
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Old 09-08-2011, 01:06 AM  
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Quote:
Originally Posted by Austin View Post
What are specifically looking to do?

Just make money?
No. I'm looking to start something that my kids can participate in, and that I can eventually leave to them. If I do go into the restaurant mode, I was thinking about going into franchising first to get a base of good capital to roll into my own themed restaurant. This is all speculative, and I'm in the purely planning phase at this point.

I'd be lying if I said I didn't want to make money. However, my goal isn't to be a millionaire. My goal is to have an endeavor where I don't get bored, and where the challenges are always changing - I have professional ADD. If I'm not constantly challenged, then I'll be looking for another path to take.


Quote:
Originally Posted by bisjoe View Post
I ran a small business for 17 years that provided services to some franchises,
mainly restaurants, and also competed with some. Most of them that I saw failed withing the first 1-2 years. The main reason was that franchise people advertise and promote their stores as "anyone can do it" and that's just not true. You must have the experience and knowledge of that business to
succeed. Another problem is that they have to approve the location and require specific designs that take time, and they are not familiar wit the area. Just last week I noticed in our small city two frozen yogurt franchises going in right across the street from each other! Apparently neither knew about the other.
Also, a bad time to be opening in the fall in our climate.
Well, yes that definitely sounds like those two yogurt places weren't very well planned at all! Needless to say, I'd be a little more careful than those guys were. Before the Marine Corps, I worked in many different positions, from steel forming to retail to just about every job in the restaurant business. In the Corps, I've had plenty of experience in Linguistics, and I currently work in the intelligence field.

Needless to say, my experience is very diversified, which is why I'm so open to looking into many different self-employed options. To put humbleness aside, I know that I have the drive, skills, intelligence, and ability to take risks to make anything work - that's definitely come from the Marine Corps. I know that my end game is, like I said above, to have an endeavor that will constantly challenge me, and that I can leave to my children. Also, something that, of course, will pay the bills comfortably. However, I'm a frugal man, so my family's standard of living is not extravagant.
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Old 09-08-2011, 06:37 PM  
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I don't know what it's like in your neck of the woods, but up here most franchises that stand a good chance of actually succeeding are running 500K and up up up by the time all is said and done.

You need to decide where you're going to live, and then look at what service will fill a void in that area. And then you need to fill that void in a way so that there will be minimal competition. Makes no sense to pay for a franchise if you can do something else on your own with much less of an investment. There's always risk, but I wouldn't even venture anywhere close to food service because of the huge investment and intense competition.

It's a major undertaking to find the right niche, but well worth the effort (says the guy flying a desk )

If I could do it over, I would go that route myself, but alas....
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Old 09-09-2011, 10:39 AM  
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Quote:
Originally Posted by Jake7 View Post
No. I'm looking to start something that my kids can participate in, and that I can eventually leave to them. If I do go into the restaurant mode, I was thinking about going into franchising first to get a base of good capital to roll into my own themed restaurant. This is all speculative, and I'm in the purely planning phase at this point.

I'd be lying if I said I didn't want to make money. However, my goal isn't to be a millionaire. My goal is to have an endeavor where I don't get bored, and where the challenges are always changing - I have professional ADD. If I'm not constantly challenged, then I'll be looking for another path to take.
McDonald's is what you need to invest in then. I have yet to know a restaurant owner who wasn't struggling to some degree or another.

I have yet to know a McDonalds franchisee who is not well off.

Do you have any experience in a commercial culinary setting?

Just a reminder, this is what I did for a living for over a decade, not just talking out of my __________.
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Old 09-09-2011, 11:16 AM  
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In my area, to purchase a Mc Donalds franchise will run $5 Million dollars. I know the local franchisee who owns 5 of them, and received a huge discount for his last restaurant, and it only cost him $1 Million.
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Old 09-09-2011, 12:08 PM  
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Originally Posted by havasu View Post
In my area, to purchase a Mc Donalds franchise will run $5 Million dollars. I know the local franchisee who owns 5 of them, and received a huge discount for his last restaurant, and it only cost him $1 Million.
Unfortunately I've never seen the numbers from a McD's, that would make sense considering the money they make.
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Old 09-09-2011, 08:40 PM  
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Yeah. However, McD's requires a person to have a net worth of $500k before they even consider them for franchising. After that, they have special partnerships with major banks that will easily loan you the rest of the amount at some of the lowest rates in the industry. On top of that, I think you pay 4% or so of your monthly profit to the McD's franchise. McD's is pretty much guaranteed success, so that whole plan makes sense.

The $500k can't be any type of loan. So, basically, they want already-successful people. So this definitely isn't a starting-out sort of franchise, at all.
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