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Old 02-23-2012, 06:47 PM   #21
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Wait a minute - you didn't say it was a pizza franchise. That may change a lot of our opinions.

LoL Ok, is it less work then? Wanna chip in to a partnership?

Actually, it's 11am - 8pm operation, so less hours than a standard fast food. Take & bake = less overhead, dinner part time employees = high school kids, but still 7 days a week.

I honestly just need a couple of years to get to my cureent plus budget, so I don't need the extra risk. I think'll just look for a duplex or triplex short sale to add to my rentals and a contract position if I walk out, but I'll be professional about it.
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Old 02-23-2012, 09:44 PM   #22
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Originally Posted by Aiming_4_55 View Post
LoL Ok, is it less work then? Wanna chip in to a partnership?

Actually, it's 11am - 8pm operation, so less hours than a standard fast food. Take & bake = less overhead, dinner part time employees = high school kids, but still 7 days a week.

I honestly just need a couple of years to get to my cureent plus budget, so I don't need the extra risk. I think'll just look for a duplex or triplex short sale to add to my rentals and a contract position if I walk out, but I'll be professional about it.

So let me get this straight.... you go out someplace to buy a pizza that is NOT cooked And you are supposed to go home and cook it yourself?

And how much would these pizzas cost? And how are they so much better than you can buy at the grocery store? Or buying a cooked pizza from one of the big chains or even local guys who make a great pie

I just do not get the business model of this franchise...
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Old 02-23-2012, 09:53 PM   #23
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Originally Posted by Ronstar View Post
Wait a minute - you didn't say it was a pizza franchise. That may change a lot of our opinions.
Two words: Free Pizza

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Originally Posted by Texas Proud View Post
So let me get this straight.... you go out someplace to buy a pizza that is NOT cooked And you are supposed to go home and cook it yourself?

And how much would these pizzas cost? And how are they so much better than you can buy at the grocery store? Or buying a cooked pizza from one of the big chains or even local guys who make a great pie

I just do not get the business model of this franchise...
We do take and bake all the time. Way better than the budget chains like Pizza Hut or Little Caesars. A lot less money that the high end places and better than most supermarket pizza. Good stuff.
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Old 02-23-2012, 11:26 PM   #24
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It only gets bigger if you allow it to get bigger... if you want it smaller, you can make it smaller...
This isn't necessarily true, unless you are an accountant or some other professional. Businesses often must grow or die, largely because grow is what your competitors are trying to do.

Ha
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Old 02-24-2012, 12:03 AM   #25
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LoL Ok, is it less work then? Wanna chip in to a partnership?

Actually, it's 11am - 8pm operation, so less hours than a standard fast food. Take & bake = less overhead, dinner part time employees = high school kids, but still 7 days a week.

I honestly just need a couple of years to get to my cureent plus budget, so I don't need the extra risk. I think'll just look for a duplex or triplex short sale to add to my rentals and a contract position if I walk out, but I'll be professional about it.
i like the take and bake idea. i love pizza and I'd consider a partnership, but I'm getting too old to work and don't want to get fatter from the constant diet of free pizza.
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Old 02-24-2012, 02:52 AM   #26
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I would not take the risk of leaving my job to start a franchise business if you are that close to FI. Especially with kids.
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So, yesterday I sat through a webinar on a franchise. $200k investment with estimated $150k annual net income projected with steady increases over the years. (...)
Kind of a rant, but I've been thinking of it as it would be nice to leave a business behind to my kids, probably a silly thought.
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Old 02-24-2012, 06:33 AM   #27
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DW's nephew did the franchise gig for a couple of years on a sub shop. Worked his butt off for ~3 years and exited $50k poorer but much wiser.

He was in his early 30's at the time and had time to financially recover but still an expensive lesson.

But that's my sole example of franchises. I'd run away.
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Old 02-24-2012, 06:59 AM   #28
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I can speak from small-business experience. I was working in the nuclear industry (and Navy Reserve) and looking for something within our control when my DW and I purchased a 2 storefront business.

CONs:
1. Worked seven days a week almost continuously for 7 years.
2. Constant tension about cash flow with personal money filling the gaps. Had the extra tension of late night phone calls following several break-in robberies.
3. It was way beyond bringing work home with us. It permeated our lives.


PROs
1. My daughters got a front row seat and I think it helped them appreciate a good work ethic and value preparing for the future.
2. We avoided bankruptcy, closing the stores with all bills paid.
3. We avoided divorce with a well-tested relationship.

Looking back, I have no regrets because I understand the reasoning behind our decision and that external market factors were at play. But I still smile broadly when I remind myself I don't have to spend the weekend at the stores.
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Old 02-24-2012, 07:00 AM   #29
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I would not take the risk of leaving my job to start a franchise business if you are that close to FI. Especially with kids.
+1

We had a take and bake pizza place where I lived and we went quite often, but I guess not often enough because it closed after a few years. I liked the pizza though and it is fresh out of the oven.

I don't see that a franchisor would bring enough to the table to justify $200k investment, you could do it yourself and save $200k. How many pizzas do you have to sell to make $150k profit?
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Old 02-24-2012, 08:42 AM   #30
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This isn't necessarily true, unless you are an accountant or some other professional. Businesses often must grow or die, largely because grow is what your competitors are trying to do.

Ha

I will agree that MOST businesses want to grow, but there is nothing that requires you to grow or die... I have heard that many times and it just is not true...

There are many small businesses that just do not grow... they might have 10 or so employees and stay at that level year in and year out... sure, they change their prices due to inflation, but just do not grow...

Also, growth has killed off a lot of businesses over the years... an owner sees how successful he is with one location, so he starts opening up more... but he grows to fast and then his business is not doing the same as it was... customers get mad, they leave... and the business dies...

I am just saying that it is a decision of the owner to let a business grow where it consumes all his time like the OP said...
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Old 02-24-2012, 08:50 AM   #31
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DW's nephew did the franchise gig for a couple of years on a sub shop. Worked his butt off for ~3 years and exited $50k poorer but much wiser.

He was in his early 30's at the time and had time to financially recover but still an expensive lesson.

But that's my sole example of franchises. I'd run away.

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+1

We had a take and bake pizza place where I lived and we went quite often, but I guess not often enough because it closed after a few years. I liked the pizza though and it is fresh out of the oven.

I don't see that a franchisor would bring enough to the table to justify $200k investment, you could do it yourself and save $200k. How many pizzas do you have to sell to make $150k profit?

Both of these sound very familiar to me.... back when I was turning 30 I had a friend who wanted to open a Subway shop... he said he had talked to an owner of one and got the same story of making $150K per year... and the guy said he had hired a manager to do 'all the work'.... Me, I laughed... I wondered how many subs you had to sell to pay for all the staff, food costs, rent etc. etc. including a manager and still take home $150K... my quick calculation said you had to sell over 1,500 subs a day if you profit is $1 per sub...

But hey, I could be wrong.... there are a lot of these shops around and they seem to have staying power...
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Old 02-24-2012, 09:35 AM   #32
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Both of these sound very familiar to me.... back when I was turning 30 I had a friend who wanted to open a Subway shop... he said he had talked to an owner of one and got the same story of making $150K per year... and the guy said he had hired a manager to do 'all the work'.... Me, I laughed... I wondered how many subs you had to sell to pay for all the staff, food costs, rent etc. etc. including a manager and still take home $150K... my quick calculation said you had to sell over 1,500 subs a day if you profit is $1 per sub...

But hey, I could be wrong.... there are a lot of these shops around and they seem to have staying power...
Years ago I recall reading an article on franchises that gave an evaluation of the potential... What stands out is they described buying a Subway franchise in most cases as spending a bunch of $$$ to get yourself a minimum wage job...
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Old 02-24-2012, 10:03 AM   #33
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We have one of those pizza places here ("HomeMade Pizza") and I think it does pretty well--no ovens, just refrigerators and people assemble the pies. I think the ingredients are brought in already prepped (dough is made, sauce is ready, etc.), so it's nowhere near the work of a regular pizza parlor but the pies cost more! We've only gone a couple of times and prefer the regular pizza parlor pies.

But I think the concept might be coming to the end of a fad. It was an Oprah "favorite thing" in 2006.
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Old 02-24-2012, 11:31 AM   #34
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<>... so it's nowhere near the work of a regular pizza parlor but the pies cost more! We've only gone a couple of times and prefer the regular pizza parlor pies.
I suppose on if you are a harried parent heading home after work or picking up kids into a suburb, or if you are single or a couple living surrounded by really top grade pizza, including some wood fired oven stuff. I am off of pizza now for health reasons, but I was real fan earlier to the point wehre when I moved from Southern New England to the West Coast I went on a pizza strike. 60 years later, locals have still not caught up, although the places are sometimkes now calle "apizza". They still haven't learned to pronounce "abitz!"
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Old 02-24-2012, 12:03 PM   #35
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We have a chain around here, Papa Murphey's, take and bake. They are pretty good, but they are not much cheaper than Domino's or Papa Johns. Maybe a buck or two.
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Old 02-24-2012, 12:58 PM   #36
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I suppose on if you are a harried parent heading home after work or picking up kids into a suburb, or if you are single or a couple living surrounded by really top grade pizza, including some wood fired oven stuff. I am off of pizza now for health reasons, but I was real fan earlier to the point wehre when I moved from Southern New England to the West Coast I went on a pizza strike. 60 years later, locals have still not caught up, although the places are sometimkes now calle "apizza". They still haven't learned to pronounce "abitz!"
If I close my eye's after reading your post, I can almost smell "Wooster St".
Thanks for the memory!
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Old 02-24-2012, 01:57 PM   #37
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The franchise was a take and bake pizza place.
A good friends BIL bought a Dominos region. Build 3 stores, hired a GM ... never got his hands dirty. And lost his shirt. He's in the .1% of failures. Now triing to sell them to no avail.
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Old 02-24-2012, 05:51 PM   #38
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We did the franchise thing (print shop) when I reached satuation with mega corp BS.
Couple of lessons:
1. Unless you have the capital and desire to scale up to multiple locations, you are really buying a job and not a very well paying one at that.
2. Be sure you know what your exit strategy is--many franchises just disappear and the owners and all the so-called sweat equity just disappears.
3. If you really really want to own a franchise, find an existing going concern where you can look at actual financials and purchase assets at discount
4. Better yet, work for "free", for an existing franchise of your choosing and see what the fit is really.

We were fortunate enough to recognize the true economics of the biz and the future outlook, we got out early enough to recoup our invested capital but not any of the loss income from leaving corp life for the nearly 2.5 years we ran it.
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Old 02-24-2012, 05:52 PM   #39
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So let me get this straight.... you go out someplace to buy a pizza that is NOT cooked And you are supposed to go home and cook it yourself?

And how much would these pizzas cost? And how are they so much better than you can buy at the grocery store? ...
Yup, almost like buying groceries at the mart to bring home to cook. Interesting concept huh Just teasing.

It's quite popular by me, first ring burbs... everytime I go, 8 - 10 customers in line, so decent business. Ingredients are cut fresh daily and better quality cheese according to sales pitch. Standard family size pizza about 10 bucks.
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Old 02-24-2012, 05:56 PM   #40
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I would not take the risk of leaving my job to start a franchise business if you are that close to FI. Especially with kids.
The kids are too young, so they will stay home while I work

Just teasing and I hear the overwhelming feedback. Thanks.
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