Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Anybody ever own a franchise.
Old 11-03-2015, 09:23 AM   #1
Full time employment: Posting here.
 
Join Date: Mar 2015
Location: philly
Posts: 882
Anybody ever own a franchise.

My sister, lol of all people said to me last night.. "why don't we open a franchise"??

I think she was dead serious (unfortunately).

So anyone ever own a franchise? I always think of fast food which equals long hours,lots of work.

experience.
__________________

__________________
bclover is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-03-2015, 09:45 AM   #2
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,449
A friend was unhappy with the tuition bill he could from his son's private college. Proposed the following to his wife:

I'll give our son 250k to open a franchise of his choice. He can work the bussiness for a few years then turn it over to a manager and PAY FOR HIS OWN COLLEGE education. Plus he'll have a job to come home to when he graduates.

Wife didn't go for it. Now jr is in his senior year concerned about where he'll find work.
__________________

__________________
FIRE'd since 2005
tryan is offline   Reply With Quote
Old 11-03-2015, 09:56 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,037
My SO's son owned a karate franchise . After two years of losing money he shut down now no one mentions it at family gatherings .
__________________
Moemg is offline   Reply With Quote
Old 11-03-2015, 10:04 AM   #4
Full time employment: Posting here.
 
Join Date: Mar 2015
Location: philly
Posts: 882
Quote:
Originally Posted by tryan View Post
A friend was unhappy with the tuition bill he could from his son's private college. Proposed the following to his wife:

I'll give our son 250k to open a franchise of his choice. He can work the bussiness for a few years then turn it over to a manager and PAY FOR HIS OWN COLLEGE education. Plus he'll have a job to come home to when he graduates.

Wife didn't go for it. Now jr is in his senior year concerned about where he'll find work.


LOL,
No way could I have given my 19 year old 250K

my kid would get an empty warehouse, construct a pole, blow the remaining money on a "dancer" name "cinnamon" and tell me it's the best class he's ever taken.
__________________
bclover is offline   Reply With Quote
Some upside...possible downside
Old 11-03-2015, 10:09 AM   #5
Recycles dryer sheets
Newventurer's Avatar
 
Join Date: Sep 2012
Location: in the sticks
Posts: 238
Some upside...possible downside

The news is full of incidents where a parent company's missteps will negatively impact the franchise community - Jared (Subway), emissions (VW), eColi (Chipolte) and on and on.

Things that happen around the world can impact your pocketbook, through no fault of your own.

The Brands high fees for marketing and onerous quality standards can leave a franchisee with little to show for their investment.

My personal thoughts are that the Internet has leveled the playing field for small proprietor owned business where you can have similar visibility on eCommerce vs a franchise if you have a crack eCommerce team working for you.
__________________
Newventurer is offline   Reply With Quote
Old 11-03-2015, 10:11 AM   #6
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: 19th Hole
Posts: 2,535
Had a brother open up a pizza franchise, lost his butt, employees stole from him and he just wasn't cut out to work 16 hour days 24/7.
__________________
A totally unblemished life is only for saints.
frayne is offline   Reply With Quote
Old 11-03-2015, 10:14 AM   #7
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Eagan, MN
Posts: 3,067
I looked at a few 10+ years ago. I also have opened and operated a small tavern.

Laundromat
Tanning Salon
Hair Salon
Check cashing place (the most interesting)
Webcam Model Studio (not franchise)

I had a small commercial space that I was trying to rent. I figured it may be more lucrative to open a business, than just rent the space. In the end, some franchises rejected me as my building was older and not up to their 'standards'. Some suggested my place was a good location, not a great location.

In the end, I found a tenant that has been there to this day.

If the franchise does not do any sales demographics for you, stay away.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Old 11-03-2015, 10:16 AM   #8
Thinks s/he gets paid by the post
 
Join Date: Nov 2006
Posts: 2,268
I dont know anything about the franchise world but I do know there are a hell of a lot of Subways, Papa Johns, etc that are franchises and I dont see them going out of business so somebody is making money.
__________________
utrecht is offline   Reply With Quote
Old 11-03-2015, 10:17 AM   #9
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,139
Quote:
Originally Posted by frayne View Post
... he just wasn't cut out to work 16 hour days 24/7.
That works out to be 40 hours a day, 7 days a week. Tough for anyone to do long term.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 11-03-2015, 10:22 AM   #10
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: 19th Hole
Posts: 2,535
Quote:
Originally Posted by REWahoo View Post
That works out to be 40 hours a day, 7 days a week. Tough for anyone to do long term.
LOL, I think you know what I meant ! I'm sure if you talked to him it felt like 40 hour days. He was at work even when he wasn't at work.
__________________
A totally unblemished life is only for saints.
frayne is offline   Reply With Quote
Old 11-03-2015, 10:29 AM   #11
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,139
Quote:
Originally Posted by frayne View Post
LOL, I think you know what I meant ! I'm sure if you talked to him it felt like 40 hour days. He was at work even when he wasn't at work.
+1

My dad owned a small business (not a franchise) and worked 55 to 60 hours, six days a week. I don't ever recall him taking a week long vacation.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 11-03-2015, 10:32 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,294
Quote:
Originally Posted by frayne View Post
Had a brother open up a pizza franchise, lost his butt, employees stole from him and he just wasn't cut out to work 16 hour days 24/7.
Quote:
Originally Posted by REWahoo View Post
That works out to be 40 hours a day, 7 days a week. Tough for anyone to do long term.
Quote:
Originally Posted by frayne View Post
LOL, I think you know what I meant ! I'm sure if you talked to him it felt like 40 hour days. He was at work even when he wasn't at work.


But outside the losing money, thieving employees, and long hours 7 days a week, how did the franchise work out for him?

40 hours a day? Hmmm, 16*24/7 ~ 54.857143. 'Numbers is hard' indeed!


-ERD50
__________________
ERD50 is online now   Reply With Quote
Old 11-03-2015, 10:36 AM   #13
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: 19th Hole
Posts: 2,535
Quote:
Originally Posted by ERD50 View Post


But outside the losing money, thieving employees, and long hours 7 days a week, how did the franchise work out for him?

40 hours a day? Hmmm, 16*24/7 ~ 54.857143. 'Numbers is hard' indeed!


-ERD50
I think he tried to make it work for about three years before throwing in the towel. Both he and his wife worked the store, plus other jobs. I think all in all he was about $50K in the hole when he closed shop.
__________________
A totally unblemished life is only for saints.
frayne is offline   Reply With Quote
Old 11-03-2015, 11:03 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,294
Quote:
Originally Posted by frayne View Post
I think he tried to make it work for about three years before throwing in the towel. Both he and his wife worked the store, plus other jobs. I think all in all he was about $50K in the hole when he closed shop.
Losing $50K is tough enough, but a real double-whammy (or triple, since both him and his wife had to work at it) when you had to put all that effort into losing it. Sad.

-ERD50
__________________
ERD50 is online now   Reply With Quote
Old 11-03-2015, 12:35 PM   #15
Thinks s/he gets paid by the post
ExFlyBoy5's Avatar
 
Join Date: May 2013
Posts: 1,977
Subway is a great deal if you own 40 of them. Talk about a huge pain! I have a buddy that retired from the AF and opened a Papa John's Pizza place under some "reduced fee" structure for vets. He now has 3 locations and is doing pretty well. One of my Dad's former clients had a number of McD's franchises. He started with one here in ATL and that grew to 7 locations. In the late 90's, he sold them and bought 12 or 13 locations in the Phoenix area. He is no longer with us, but his family is doing quite well $$$ wise.

As I understand it, McD's used to pick franchisees with regard to ability as opposed to net worth. I don't think that is the case anymore. I think the only outfit that does something similar is Chick-Fil-A (not a true franchise, you become a business partner w/ corporate). There can be THOUSANDS of applicants for new Chick-Fil-A locations, but if you are the one that is picked, the amount of $$$ you have to invest is very minimal (it used to be about $5,000...not sure if that's changed in the last few years though).

Anyway...most franchises that are worth anything, you have to have pretty substantial net worth and for me, if I met those requirements, I have no reason to w*rk anyway, so why would I jump in?
__________________
Founder and Head Lounger @ The Life of Leisure Institute
Retired in 2014 at the Ripe Age of 40.
ExFlyBoy5 is offline   Reply With Quote
Old 11-03-2015, 12:40 PM   #16
Recycles dryer sheets
 
Join Date: Apr 2014
Posts: 227
I have considered a Papa Murphy's franchise. It's a take and bake pizza concept. I think it is a pretty good business model. Relatively low overhead for food service. No ovens to buy and maintain, just a couple refrigerators and a mixer. Need around a $300k net worth with $80k liquid. I've worked the last ten years in full service restaurants. It's always pretty stressful and I thought this would be a good alternative. Oh, and they are my favorite pizzas.
__________________
retirementguy1 is offline   Reply With Quote
Old 11-03-2015, 12:45 PM   #17
Thinks s/he gets paid by the post
ExFlyBoy5's Avatar
 
Join Date: May 2013
Posts: 1,977
Quote:
Originally Posted by retirementguy1 View Post
I have considered a Papa Murphy's franchise. It's a take and bake pizza concept. I think it is a pretty good business model. Relatively low overhead for food service. No ovens to buy and maintain, just a couple refrigerators and a mixer. Need around a $300k net worth with $80k liquid. I've worked the last ten years in full service restaurants. It's always pretty stressful and I thought this would be a good alternative. Oh, and they are my favorite pizzas.
The only locations of Papa Murphy's I have known are all closed. I'd be careful with that franchise!
__________________
Founder and Head Lounger @ The Life of Leisure Institute
Retired in 2014 at the Ripe Age of 40.
ExFlyBoy5 is offline   Reply With Quote
Old 11-03-2015, 12:47 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,624
A friend of a friend owns over a hundred franchises, at least three different business models. He says the key is to hire the best managers you can find and treat them very well. Then you just sit back and count the money.
He's one of the richest people in the state where he lives, so that makes him worth listening to.
__________________
braumeister is online now   Reply With Quote
Old 11-03-2015, 12:54 PM   #19
Recycles dryer sheets
 
Join Date: May 2013
Posts: 214
There are a lot of existing, profitable businesses for sale at bizbuysell.com. Why pay $250k to start a franchise while "hoping" for customers when you can buy an existing business for $250k that already earns $100k/year from existing customers?


Sent from my iPhone using Early Retirement Forum
__________________
RenoJay is online now   Reply With Quote
Old 11-03-2015, 12:57 PM   #20
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 3,006
About 10 years ago, one of my collegues in the actuarial field decided to open up a ColdStone Creamery franchise because he was passionate about ice cream. They provided training; I remember him bringing samples to work.

He opened up in a university town nearby and it did not work out well. I think he had the usual problem of getting reliable help so put in way too many hours himself. He eventually locked up and gave them the key and went back into the insurance business. He said that the amount of risk he assumed to what HQ assumed was unconscionable (i.e. he took all the risks).

Things I'd worry about: inflated costs of equipment/ingredients you're required to buy from HQ, how many competing locations they can open nearby, how often they'll blanket the world with offers and coupons which you must honor even though you lose money and, as noted above, dumb things HQ can do (including just closing down) that can kill your little business.

I'm not cut out to be an entrepreneur- can you tell?
__________________

__________________
athena53 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Anybody Here Own LTC (Long Term Care) FinanceDude Life after FIRE 109 07-11-2011 11:22 AM
Anybody own a Saab, or used to? FinanceDude Other topics 20 02-22-2010 12:04 PM
Anybody On Here Own a Honda Fit?? FinanceDude Other topics 45 06-22-2008 04:52 PM
Anybody Cash out early, pay penalties and start their own business? vicmost Young Dreamers 10 01-16-2006 03:02 PM
Things own you; you don't own things - know what is want and a need dex Young Dreamers 21 10-26-2005 01:40 PM

 

 
All times are GMT -6. The time now is 01:52 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.