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Need a little help (franchising)

joker5656joker5656 Member Posts: 5,598 ✭✭✭
edited January 2007 in General Discussion
OK so i was thinking, i want to open up a business (non gun related), but whats needed to open up a franchise?

Comments

  • kristovkristov Member Posts: 6,633
    edited November -1
    For the small business owner franchises offer a lot of advantages, including the rights to use a branded name, advertising (often nation wide or even world wide) and in most cases support from the franchiser. A franchise can run the spectrum of carpet cleaning or plumbing businesses on up to the big ticket franchises like opening a McDonalds. A franchise can also be as small as a couple of vending machines located in a park or school. My advice to anyone interested in starting up their own business is that the go with what they know best; while you don't have to be an auto mechanic to start up an AAMCO transmission franchise, it would not hurt to know the ins and outs of auto repair. There are specific franchise seminars as well as franchise "trade show" held in major cities around the country and attending one or more of these can give you a very good idea of what is out there, as well as what kind of up front capital you are going to need. Micky-D wants to see a pile of cash before you can hang the Golden Arches in front of your burger joint, but many other franchises can be had for very little up front investment. Be cautious that some merchandise sales franchises are in reality simple pyramid schemes designed to rake in cash for a few top-dogs, while leaving you sitting on top of a pile of useless widgets which have no real market.
  • stevenrayspeckstevenrayspeck Member Posts: 2,056 ✭✭✭✭✭
    edited November -1
    quote:Originally posted by 46270
    money, a lot of money.[:D][:D][:D]



    Looooooooootttttttttttssssssss of money.[:D][:D][:D]
  • joker5656joker5656 Member Posts: 5,598 ✭✭✭
    edited November -1
    i was thinking Popeye's, nearest one is 1 1/2hrs away
  • kristovkristov Member Posts: 6,633
    edited November -1
    quote:Originally posted by joker5656
    i was thinking Popeye's, nearest one is 1 1/2hrs away



    OUCH! These types of restaurant franchises are extremely expensive and mandate a lot of up front cash. Off the top of my head I'll wager that Popeye is going to want to see a net worth of at least $1 million and will demand that half of that be liquid. A typicial franchise fee would probably be in the $30-$40,000 range plus the cost of the site, the building, the signage and all of the equipment needed top operate the faclility (the eqipment alone will probably be a minimum of $150,000). You can buy an existing restaurant and adapt it to Popeye's specifications (they will tell you the size and the layout and you MUST conform) or construct your own facility the ground up for maybe $300,000...But it could easily be double that depending on where you are going to be located. A typical 20 year franchise deal would mean giving Popeye 5% of you gross (they determine what your gross sales are) along with 3-5% additional of the gross for your share of their advertising. The restaurant business is one of the toughest ways out there to turn a buck and unless you have plenty of experience (or have a partner who does) I doubt that Popeye will even consider talking to you about being awarded a franchise.
  • 11b6r11b6r Member Posts: 16,725
    edited November -1
    You may want to take a look at track record first. Fast Food franchises tend to be VERY pricy, profit margins are very low- and highest new business failure rate at one time (may still be) was food service. High equipment cost, labor issues, etc. Think really hard before plonking a LOT of cash down for this.
  • NeilTheBritNeilTheBrit Member Posts: 390 ✭✭✭
    edited November -1
    A lot of money
    A lot of research
    A damn good lawyer and accountant.
  • select-fireselect-fire Member Posts: 63,008 ✭✭✭✭
    edited November -1
    Go to your local bookstore. They should have a Franchise book with a list of business's and cost and contact people. Better yet I found their link. Net worth of 1.5 million ??

    http://www.popeyesfranchising.com/
  • Horse Plains DrifterHorse Plains Drifter Member Posts: 35,720 ✭✭✭✭
    edited November -1
    Wow! That's a lot of outlay just to sell some barnyard pimp.
  • select-fireselect-fire Member Posts: 63,008 ✭✭✭✭
    edited November -1
    I know a guy that started a Bo-Jangles chicken place. He thought he knew everything , and had franchise help. Well, location killed him. He lasted 1.5 years and went belly up. No guarantee's in the food industry.
  • kristovkristov Member Posts: 6,633
    edited November -1
    quote:Originally posted by select-fire
    Go to your local bookstore. They should have a Franchise book with a list of business's and cost and contact people. Better yet I found their link. Net worth of 1.5 million ??

    http://www.popeyesfranchising.com/


    WOW! It appears that it is going to take a lot more money than I had thought and that you were much closer to the correct amount select-fire. Looking over the franchise pre-qualifier it also seems that Popeye is more interested in opening multiple franchises in targeted areas so there may be no frachise available in the area that joker is interested in.
  • HeavyBarrelHeavyBarrel Member Posts: 1,466 ✭✭✭✭✭
    edited November -1
    I know that "Panera Bread" requires something like 3 milion cash up front and net worth of around 7 million.
  • buschmasterbuschmaster Member Posts: 14,250 ✭✭✭
    edited November -1
    dang!!! who would go through all that just so they can run a grease kitchen?? you'd think if you had that kind of $$$ you could find something better to do with it
  • tapwatertapwater Member Posts: 11,162
    edited November -1
    ....I had a great site that listed franchises and the approximate start-up $ needed. I can't find it now, but just google "franchise" and you'll find plenty of opportunities and scams.
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