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bclover 11-03-2015 09:23 AM

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.

tryan 11-03-2015 09:45 AM

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.

Moemg 11-03-2015 09:56 AM

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 .

bclover 11-03-2015 10:04 AM

Quote:

Originally Posted by tryan (Post 1652586)
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.

:laugh:

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.

Newventurer 11-03-2015 10:09 AM

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.

frayne 11-03-2015 10:11 AM

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.

Senator 11-03-2015 10:14 AM

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.

utrecht 11-03-2015 10:16 AM

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.

REWahoo 11-03-2015 10:17 AM

Quote:

Originally Posted by frayne (Post 1652603)
... 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. :)

frayne 11-03-2015 10:22 AM

Quote:

Originally Posted by REWahoo (Post 1652609)
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.

REWahoo 11-03-2015 10:29 AM

Quote:

Originally Posted by frayne (Post 1652612)
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. :nonono:

ERD50 11-03-2015 10:32 AM

Quote:

Originally Posted by frayne (Post 1652603)
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 (Post 1652609)
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 (Post 1652612)
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.

:laugh:

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

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


-ERD50

frayne 11-03-2015 10:36 AM

Quote:

Originally Posted by ERD50 (Post 1652617)
:laugh:

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

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.

ERD50 11-03-2015 11:03 AM

Quote:

Originally Posted by frayne (Post 1652620)
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

ExFlyBoy5 11-03-2015 12:35 PM

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?

retirementguy1 11-03-2015 12:40 PM

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.

ExFlyBoy5 11-03-2015 12:45 PM

Quote:

Originally Posted by retirementguy1 (Post 1652684)
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!

braumeister 11-03-2015 12:47 PM

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.

RenoJay 11-03-2015 12:54 PM

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

athena53 11-03-2015 12:57 PM

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?;D

retirementguy1 11-03-2015 01:07 PM

Quote:

Originally Posted by FlyBoy5 (Post 1652685)
The only locations of Papa Murphy's I have known are all closed. I'd be careful with that franchise!

They seem do to pretty well where I live. They were popular in Utah where I grew up, I don't remember seeing one close. When I moved to Las Vegas 8 years ago there were only two in the city, now there are over 10 and I think only one has closed. The franchisee chooses the location and really needs to do the homework before jumping in.

I had one open up just a couple blocks from me. I talked with the owner; retired military. He had never owned a business or worked in food service. The store has been open a few years now and seems to be doing well.

tryan 11-03-2015 01:34 PM

Quote:

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.
.... heard colleges now offer "Pole Dancing" as a credited class.

A friends sister married a trust fund kid worth 2-3M. He decided - after never having w@rked - to open Dominos Pizza near the Cape. He sunk a 7 digit sum into building out his territory .... 4 stores. Then - not wanting to w@rk - he hired a six figure general manager to run the show. Then he went back to doing nothing. One by one the stores failed. By the time she divorced him, she left the marriage with DEBT ... no assests left.

Not for the thin skinned.

rodi 11-03-2015 02:03 PM

Quote:

Originally Posted by Newventurer (Post 1652600)

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

We had a Baskin Robbins at our local grocery store strip mall. It disappeared several years ago - after 15 years of operation - when BR corporate dictated a remodel/re-image. The owner closed it down rather than invest the close to $50k it would have required to stay compliant as a franchasee... Now it's a franchise frozen yogurt place... seems to be doing ok.

A friend's husband bought a laundrymat franchise business while still in college (and working as a realtor... not sure when he found time to date my friend.) It was a winner for him. He had 3 employees total, did his own maintenance, had shiny new machines... he was making more money from this than from his realtor gig (which was his primary gig.)

FUEGO 11-03-2015 02:23 PM

Quote:

Originally Posted by tryan (Post 1652702)
A friends sister married a trust fund kid worth 2-3M. He decided - after never having w@rked - to open Dominos Pizza near the Cape. He sunk a 7 digit sum into building out his territory .... 4 stores. Then - not wanting to w@rk - he hired a six figure general manager to run the show. Then he went back to doing nothing. One by one the stores failed. By the time she divorced him, she left the marriage with DEBT ... no assests left.

Not for the thin skinned.

Q: "How do you make a million bucks?"

A: "Start with 2-3 million, open a few franchise pizza restaurants, and get out while you still have a million left"

I'd skip the franchises and open up your own place. Find a partner if you don't have the skills and refuse to learn. Not that you'll make a ton of money either way, but at least you get to control costs, menu, location, advertising, etc. Of course it's rare to hear of anyone going into food service and making a killing, so a big YMMV on that one.

aja8888 11-03-2015 02:45 PM

One of my ROMEO buddies in town owns 6 Burger Kings in the area. It's been his deal for over 20 years. He was smart (and well off) enough to own the land under the buildings. His kids run three of them (he's 64 now).

His pet peeve: Burger King is constantly creating ways to have products that make less profit margin and create higher labor costs. :nonono:

His advice to me and our ROMEO group on franchising: Bring money, lots of personal time, then pray that you have a real job to go back to. ;)

He has said that most franchises these days are designed for sucking the cash and life out of the franchise buyers/operators.

MuirWannabe 11-03-2015 02:46 PM

Take this with a grain of salt as I've done exactly zero research. But I've always thought owning public storage was a good business. People have too much crap. They need a place to store said crap. Seems low maintenance. You collect your monthly payments and just have to keep the place up to a decent degree. Don't even think a franchise fee is needed. Just buy an existing site. Just a thought like I said.


Muir

Walt34 11-03-2015 04:08 PM

DW's nephew opened a franchise Bubba's sub shop with a partner. Lasted about three years and did not end well. The usual - way too many hours, couldn't find employees who show up, actually do some work, and don't steal. They sold out at a substantial loss. I thought he was nuts from the start (does the world actually need another sub shop?) but kept it to myself.

ExFlyBoy5 11-03-2015 04:23 PM

Quote:

Originally Posted by Walt34 (Post 1652753)
DW's nephew opened a franchise Bubba's sub shop with a partner. Lasted about three years and did not end well. The usual - way too many hours, couldn't find employees who show up, actually do some work, and don't steal. They sold out at a substantial loss. I thought he was nuts from the start (does the world actually need another sub shop?) but kept it to myself.

I hear this often. Our favorite local NY Deli just closed after being the only authentic NY deli in the area for a very long time. His biggest reason? He couldn't get employees to show up, even though he would pay them $12/hr. He and wife worked there 6 days a week open to close without a vacation in over 10 years. :frown:

I have also talked to two fairly new restaurants that had to delay opening by more than 2 months because they couldn't find employees! I know the area I live in is fairly affluent, but wow, I had no idea it was so hard to find people to work!

freedomatlast 11-03-2015 04:42 PM

Quote:

Originally Posted by MuirWannabe (Post 1652726)
Take this with a grain of salt as I've done exactly zero research. But I've always thought owning public storage was a good business. People have too much crap. They need a place to store said crap. Seems low maintenance. You collect your monthly payments and just have to keep the place up to a decent degree. Don't even think a franchise fee is needed. Just buy an existing site. Just a thought like I said.


Muir

At one of my rental properties, I have five garages that I rent out separately from the house. I keep the rents below what the nearby storage businesses charge, don't raise the rents very often on the good tenants and they stay fully rented very close to 100% of the time. When someone leaves, there is always someone else ready to rent. Also it's much easier to evict a storage unit tenant if the need arises since it isn't considered their residence. And yes, it is amazing what people will spend to store their junk year after year.

pb4uski 11-03-2015 04:58 PM

Quote:

Originally Posted by retirementguy1 (Post 1652684)
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.

Why not just work at one for a few months to learn the business and then open your own take and bake pizza shop? We had one in our town about 20 years ago and I loved it.

petershk 11-03-2015 05:08 PM

I think like just about everything else... Success will be unevenly distributed and working a ton and caring will make a difference as will understanding the business.

My first job was at a pizza place and I saw lots of areas it could be improved from a customer experience as well as an operational point of view. I did a few things and that was fun... But it's HARD work so I was way happier when I started coding websites for 3* the pay :).

I suspect a more successful outcome would be to work at the franchise... Try to become a manage, save all your money and use THAT to help pay for college :).

Sent from my HTC One_M8 using Early Retirement Forum mobile app

petershk 11-03-2015 05:10 PM

Quote:

Originally Posted by bclover (Post 1652574)
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.

But at least the pay is bad :)


Sent from my HTC One_M8 using Early Retirement Forum mobile app

bclover 11-03-2015 05:27 PM

Quote:

Originally Posted by athena53 (Post 1652693)
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?;D


lol, all the coldstone creamerys around here are closed.

haha 11-03-2015 05:44 PM

Quote:

Originally Posted by retirementguy1 (Post 1652684)
Oh, and they are my favorite pizzas.

Papa Murphy's? This strongly suggests that you have never tasted a good pizza.

Dan4495 11-03-2015 06:03 PM

This thread makes me hungry. I think I'll go out and grab a pizza and an ice cream.

retirementguy1 11-03-2015 06:34 PM

So everyone that has commented has no first hand knowledge about franchises. Is that correct? They are all stories on top of stories.

retirementguy1 11-03-2015 06:34 PM

Quote:

Originally Posted by haha (Post 1652806)
Papa Murphy's? This strongly suggests that you have never tasted a good pizza.

Tell me where to go then?

frayne 11-03-2015 06:47 PM

Quote:

Originally Posted by retirementguy1 (Post 1652821)
So everyone that has commented has no first hand knowledge about franchises. Is that correct? They are all stories on top of stories.

Nothing wrong with a little empirical observation and comment. I don't need to jump off a cliff to know the sudden stop at the end is going to cause pain.

bclover 11-03-2015 07:00 PM

Quote:

Originally Posted by retirementguy1 (Post 1652821)
So everyone that has commented has no first hand knowledge about franchises. Is that correct? They are all stories on top of stories.

I think it's one of those things where there is so much data around it that you can believe the gist of the stories.

It's considering opening up a new restaurant. I've never done it before but there is definitely enough information around that I can reliably believe that they have a high failure rate.

nothing wrong with that.

aja8888 11-03-2015 08:09 PM

Quote:

Originally Posted by retirementguy1 (Post 1652821)
So everyone that has commented has no first hand knowledge about franchises. Is that correct? They are all stories on top of stories.

The franchise owners that post here are all still at work.....:facepalm:

retirementguy1 11-03-2015 08:17 PM

Quote:

Originally Posted by frayne (Post 1652827)
Nothing wrong with a little empirical observation and comment. I don't need to jump off a cliff to know the sudden stop at the end is going to cause pain.

Nothing empirical about it so far. The empirical data supports that franchises are more successful than mom and pop shops. Mom and pop shops are under-capitalized and more likely to fail in the first three years. Simple as that. Just to get a franchise you need to have more capital and stability.

retirementguy1 11-03-2015 08:22 PM

Quote:

Originally Posted by pb4uski (Post 1652781)
Why not just work at one for a few months to learn the business and then open your own take and bake pizza shop? We had one in our town about 20 years ago and I loved it.

Most employees are in high school. I doubt I could get a job there. Also, a national chain gets 10% off food for buying bulk. If I set up in the same town I'm not sure I would be able to compete.

Your idea is a good one to learn more about the franchise.

harley 11-03-2015 09:40 PM

Quote:

Originally Posted by retirementguy1 (Post 1652822)
Tell me where to go then?

What a set up line! I can't wait for Haha's response.


Edit: I see you are in NV. When I was looking at rental property in Reno we ate at SouthCreek Pizza. It was excellent! Wood fired ovens, fresh ingredients, really good (but not cheap). When I get back there I plan to go again.

Rickt 11-03-2015 10:49 PM

I have owned 3 three franchised hotels over the past 21 years. Needs a lot of capital investment and loong hours. Must have good manager to succeed. The property I personally manage has been profitable for me but I have sold the other two manager-operated properties after owning them for 8 and 4 years respectively because of marginal profitability. Due to the real estate component of the property(depreciated each year under ownership), I did have capital gain when I sold the properties. I now have one franchised hotel property and will retire after selling it in 2017.

Franchising model works but like any other business it requires capital and long hours. Franchising system makes it easy to grow your business across multiple locations though.

Lucantes 11-04-2015 03:50 AM

Quote:

Originally Posted by bclover (Post 1652597)
:laugh: 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.

:laugh: Where do I sign up for this class!!??:laugh:

Al in Ohio 11-04-2015 08:34 PM

Quote:

Originally Posted by Newventurer (Post 1652600)
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.


Jared and eColi will barely be a ripple to those two giants in the franchise world in the long term. I have a friend that has owned 5 Subway franchises. She bought her first twenty years ago after getting tired of the schedule of an airline stewardess. She makes millions on those five Subway stores. And Chipolte? No way this eColi thing slows them down. They will continue to be making a ton of money.


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Al in Ohio 11-04-2015 08:40 PM

Anybody ever own a franchise.
 
One thing I forgot from her experiences. In the beginning you need to put in loooong hours to be a success, but once it gets going you then need to be gifted in selecting good employees and especially store managers. Eventually the goal is to have each store run by a trusted manager while you do as you please except to check in.


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ExFlyBoy5 11-04-2015 08:45 PM

Quote:

Originally Posted by Al in Ohio (Post 1653318)
Jared and eColi will barely be a ripple to those two giants in the franchise world in the long term. I have a friend that has owned 5 Subway franchises. She bought her first twenty years ago after getting tired of the schedule of an airline stewardess. She makes millions on those five Subway stores. And Chipolte? No way this eColi thing slows them down. They will continue to be making a ton of money.


Sent from my iPad using Early Retirement Forum

I have NEVER heard stats like that from a Subway franchisee. About the best case store sales is about $15K a week. 22% NET profit is running a VERY tight ship, so on a store that performs at NEAR THE TOP you are looking at about $170K per store/per year...and that is the VERY TOP end. When I looked into it with some "decent seriousness" back in 2011/2012, the numbers of a GOOD performing store were about a 1/3rd of the numbers I just posted and I don't think they have gotten THAT much better in the last few years.

And as for the Chipotle franchise...yeah, they don't exist.

Rustic23 11-04-2015 08:50 PM

Never owned one. See my post in 'Opinions Needed: Ice Cream Business For...' for things I have learned from friends pizza business. Not something I would consider for retirement income.

haha 11-05-2015 06:17 PM

I think the average corporate or government worker who buys a franchise will feel that he or she has been run over by a truck. Hard to avoid divorce too.

If you are going to need money beyond retirement, hang on to your cash and do not buy a franchise. Keep working a while longer, or if necessary a lot longer.

To me at least the business and political future looks very little like that in which most of us have spent our lives. It may well turn out that the 50 years between WW2 and the millennium will in hindsight be understood as the high water mark of the Western version of society. Most of us have really liked it, and sometimes don't realize what an unusual state it represents.

Ha

ERD50 11-05-2015 08:37 PM

bold mine -
Quote:

Originally Posted by haha (Post 1653802)
I think the average corporate or government worker who buys a franchise will feel that he or she has been run over by a truck. Hard to avoid divorce too. ...

I'm often amused (in a good way!) by haha's ability to turn a phrase, and nail it.

Yep - I worked in production support, and for many years production ran 24/7. In parallel, I was part of future planning, so had to attend all those meetings and late night and early morning conf calls. We were in a competitive business, driven by extremely competitive management. I thought it was a pretty tough row to hoe.

Yet, I always thought managing retail was as tough or tougher, for all the reasons mentioned in this, and the 'ice cream business' thread. Not for the faint of heart. But someone who is smart, and motivated, and can put up with it all might do well. But if they had other options, those options would likely be better. As something to do to cushion retirement - no way!

Quote:

It may well turn out that the 50 years between WW2 and the millennium will in hindsight be understood as the high water mark of the Western version of society. Most of us have really liked it, and sometimes don't realize what an unusual state it represents.

Ha
This is likely true, though some unforeseen advances might change things for the positive. I do think that my parents, who saw the depression and then the post WWII boom, thought we would not do as well as they did. Hard to compare, but even though there was so much opportunity for hard workers in the post WWII boom, I would not trade my life/times for theirs.

My kids seem to be off to a good start, but they had the advantage of a stable family environment, and all graduated from college with useful degrees. So they definitely have a leg up on many others.

-ERD50

Sunset 11-06-2015 12:28 AM

Quote:

Originally Posted by retirementguy1 (Post 1652684)
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.

I liked the one near us for their super heavy pizza, but it went out of business.

Sunset 11-06-2015 12:42 AM

I know a couple that bought into a pizza franchise, near Boston. They both worked at it for about 7 years.
They finally sold it because they were tired of working 12-14 days, no control (HQ sends out coupons, the franchise fee (its a lot like mutual fund high fees only higher).

For all the hours of work they did each week, when they calculated it out, they realized they were working at a lot less than minimum wage!

papadad111 11-06-2015 05:09 AM

Quote:

Originally Posted by aja8888 (Post 1652847)
The franchise owners that post here are all still at work.....:facepalm:


Took the words out of my mouth. +1

Islandtraveler 11-06-2015 08:19 AM

Be Careful What You Wish For
 
I just retired in August after being a developer as well as a franchise owner for 28 years. It has treated me well over the years but is by no means a clear path to success. Careful examination of the parent company must be made with an understanding of their growth philosophy and franchisee support. Not all franchises perform the same throughout the country. Be careful when reviewing success percentages and focus on the transfer rate. Just because a store remains open doesn’t mean that it is profitable. Many stores can turn over at a substantial loss to the owner and may or may not make money over time. Take the time to read the FDD and definitely try to speak to other owners to gain additional perspective. I am not completely down on the franchise model but have a firsthand view of its limitations as well as opportunities having been a franchisee as well as a company representative. I see a need for a franchisee advocate to assist in navigating some of these issues. I have been kicking around the idea of doing some consulting work down the road but plan on working on my golf handicap first. :coolsmiley:

soupcxan 11-07-2015 02:54 PM

Franchise (v): to buy yourself a job

foxfirev5 11-07-2015 03:04 PM

I have a relative that RE'd from a good govt job to go out and buy a franchise first then rental property. The bad news is that another 6 months on the job would have paid for the first five years of the business ownership. haha you nailed it.

BlueAFMom 11-07-2015 05:37 PM

Father, then brother, had Chick-fil-A restaurants which is not a true franchise but a business partnership. Father was very successful but worked non-stop. Brother took a different approach with a higher paid manager and made less (long story but eventually lost the business in a nasty divorce).

After being the child of a franchise owner, working nearly every holiday and most of the seasons others were having a good time, I chose military service and have loved the 30 days paid vacation, federal holidays, modest tax bracket, and about to enjoy the COLA adjusted pension and low-cost healthcare.

In the end, I think we'll come out about the same and I worked less hours. :) Would never even consider doing it 'in retirement.'


Father's advice would be to get in, work hard, save the $$, and get out...5-10 years max.

sengsational 11-07-2015 09:28 PM

Quote:

Originally Posted by pb4uski (Post 1652781)
Why not just work at one for a few months to learn the business and then open your own take and bake pizza shop? We had one in our town about 20 years ago and I loved it.

Thats what a friend of mine did. Flower shop, but yeah, go mom and pop!

Pajaro 11-08-2015 06:07 AM

Quote:

Originally Posted by Al in Ohio (Post 1653318)
Jared and eColi will barely be a ripple to those two giants in the franchise world in the long term.

They will still make money, but consumers have long memories. I still don't eat at Jack in the Box after their eColi killed 4 kids back in 1993. I also can't stand the thought of shopping at Food Lion after their Dateline (could have been 20/20) expose. Heck, I still see "Jane Fonda in the crosshairs" stickers in urinals at USAF O'Clubs, and most officers weren't even alive during her anti-military days.

Bestwifeever 11-08-2015 09:52 AM

Quote:

Originally Posted by BlueAFMom (Post 1654823)
Father, then brother, had Chick-fil-A restaurants which is not a true franchise but a business partnership. Father was very successful but worked non-stop. Brother took a different approach with a higher paid manager and made less (long story but eventually lost the business in a nasty divorce).

After being the child of a franchise owner, working nearly every holiday and most of the seasons others were having a good time, I chose military service and have loved the 30 days paid vacation, federal holidays, modest tax bracket, and about to enjoy the COLA adjusted pension and low-cost healthcare.

In the end, I think we'll come out about the same and I worked less hours. :) Would never even consider doing it 'in retirement.'


Father's advice would be to get in, work hard, save the $$, and get out...5-10 years max.

Plus you get to hear us say (in all sincerity) thank you for your service, and we are not talking about delivering a sandwich to our table.

Thank you.


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