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-   -   Anybody ever own a franchise. (http://www.early-retirement.org/forums/f28/anybody-ever-own-a-franchise-79327.html)

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:


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