Buying a Restaurant Franchise (1 Viewer)

[mlbnfl]

Searched but found mostly threads about building sports franchises so if this has been touched on my apologies. My father has very recently contemplated seriously looking into opening a restaurant franchise of some sort and with fbgs being the place that has as large a collection of information as any others I was wondering if anyone had any interesting information about it? I realize a ton of additional details would likely need to be known as to his specific situation but any good information, horror stories, etc would be welcome as this isnt anywhere past the initial idea stage. Thanks for any and all stories/information!

 

[Binky The Doormat]

.

nothing to offer here. sorry, but anxious to hear others

 

[mr roboto]

I am the Dir of Franchise Development for a company not in the food industry but know a decent amount about franchising (I sell franchises and also assist our franchisees in site selection, demographics, build out).

My first suggestion if your dad is serious is to find a good franchise broker. They can help you determine best fit, introduce you to tools for evaluating opportunities, and the good ones only work with strong concepts. They get paid by the franchise company (not the candidate).

Best advice - buy a business based on your lifestyle and income goals. Don't fall in love with one concept. Be open to looking at various options. Food is a very competitive space and usually requires tight inventory controls, staffing turnover etc. Lots of operational complexity. If you've never been in food business before franchising is a great way to get in but there are hundreds of non-food franchises out there too.

 

[Galileo]

I have no experience, but my sister works for Popeye's which prompted me to look at their website...

Potential restaurant franchise candidates should meet the following criteria:

• Possess solid business experience
• Show proven expertise in owning or operating restaurants
• Must have a minimum net worth of $1,000,000 and $500,000 in liquid assets, per restaurant
• Make a commitment to grow with the Popeyes brand
• Previous franchise experience is advantageous

Popeyes offers flexible real estate development opportunities. The two most common venues are freestanding and in-line. However, we also develop in airports, shopping malls, college/university campuses and many other non-traditional venues.

Franchise Fees
Total Estimated Start-Up Costs range from $235,300 - $454,100*(excluding real estate and construction costs).

Development Fee $12,500 per restaurant Franchise Fee $35,000 per restaurant Royalty Fee Five percent (5%) of gross sales – as defined by Popeyes Marketing Fee Four percent (4%) of gross sales

 

[Chemical X]

you better have experience, be rich, have a lawyer and be willing to work The business 24/7. then in 18 months when you Go broke, have no regrets.

 

[Quez]

I am the Dir of Franchise Development for a company not in the food industry but know a decent amount about franchising (I sell franchises and also assist our franchisees in site selection, demographics, build out).

My first suggestion if your dad is serious is to find a good franchise broker. They can help you determine best fit, introduce you to tools for evaluating opportunities, and the good ones only work with strong concepts. They get paid by the franchise company (not the candidate).

Best advice - buy a business based on your lifestyle and income goals. Don't fall in love with one concept. Be open to looking at various options. Food is a very competitive space and usually requires tight inventory controls, staffing turnover etc. Lots of operational complexity. If you've never been in food business before franchising is a great way to get in but there are hundreds of non-food franchises out there too.

I'm sure you could dedicate an entire thread to it, but what are some of the other franchise types you would recommend?

 

[AcerFC]

There are three businesses in my area that you could print money if you had enough capital to start it

One would be an indoor sports facility (turf fields big enough to rent), an ice rink for hockey teams (if run correctly, the most lucrative. The cheapest sheet of ice for an hour in my area for an hour is $550) and a soccer specific store

If I ever had enough money, I would go with one of these. Not sure this is viable in every market though. In fact, Im sure its not

 

[Fat Nick]

There's some franchise information that some folks (myself included) posted in the Chick-Fil-A thread...I'm not sure if it survived the purge or not. That's an option if you have low start-up capital, but also has limited earnings potential.

 

[nirad3]

If you/your dad need assistance dealing with public agencies, be it health department, planning department, building department, etc... in opening stores, please feel free to PM me. I've worked with Starbucks, Carls Jr. and a host of others. Good luck!

 

[Brony]

I want to open a retail store that caters to guys; meat, bacon, craft beer, booze, sauce & rubs, cigars, etc.

 

[PIK95]

Maybe something Flintstones themed?

 

[JackReacher]

.

 

[Long Ball Larry]

Smoothie King FTW

 

[Long Ball Larry]

There are three businesses in my area that you could print money if you had enough capital to start it

One would be an indoor sports facility (turf fields big enough to rent), an ice rink for hockey teams (if run correctly, the most lucrative. The cheapest sheet of ice for an hour in my area for an hour is $550) and a soccer specific store

If I ever had enough money, I would go with one of these. Not sure this is viable in every market though. In fact, Im sure its not

Is this NYC? Wouldn't it cost like 9 billion dollars to buy the property?

 

[AcerFC]

There are three businesses in my area that you could print money if you had enough capital to start it

One would be an indoor sports facility (turf fields big enough to rent), an ice rink for hockey teams (if run correctly, the most lucrative. The cheapest sheet of ice for an hour in my area for an hour is $550) and a soccer specific store

If I ever had enough money, I would go with one of these. Not sure this is viable in every market though. In fact, Im sure its not

Is this NYC? Wouldn't it cost like 9 billion dollars to buy the property?

suburbs

 

[RUSF18]

There are three businesses in my area that you could print money if you had enough capital to start it

One would be an indoor sports facility (turf fields big enough to rent), an ice rink for hockey teams (if run correctly, the most lucrative. The cheapest sheet of ice for an hour in my area for an hour is $550) and a soccer specific store

If I ever had enough money, I would go with one of these. Not sure this is viable in every market though. In fact, Im sure its not

Is this NYC? Wouldn't it cost like 9 billion dollars to buy the property?

suburbs

So $8.5B.

 

[mr roboto]

I am the Dir of Franchise Development for a company not in the food industry but know a decent amount about franchising (I sell franchises and also assist our franchisees in site selection, demographics, build out).

My first suggestion if your dad is serious is to find a good franchise broker. They can help you determine best fit, introduce you to tools for evaluating opportunities, and the good ones only work with strong concepts. They get paid by the franchise company (not the candidate).

Best advice - buy a business based on your lifestyle and income goals. Don't fall in love with one concept. Be open to looking at various options. Food is a very competitive space and usually requires tight inventory controls, staffing turnover etc. Lots of operational complexity. If you've never been in food business before franchising is a great way to get in but there are hundreds of non-food franchises out there too.

I'm sure you could dedicate an entire thread to it, but what are some of the other franchise types you would recommend?

I don't have specific recommendations but just about any business model has been franchised. Real Estate, food, fitness, home repair, cleaning, senior care. There's a drug testing franchise. I've seen an olive oil store franchise before. Each model has different elements. An at-home cleaning franchise might cost 25-50k to open. A stand-alone restaurant? Millions.

B2B or B2C? Retail store or at-home? Owner operator model or semi-absentee developer?

It's kind of like asking 'What's your favorite house?' Depends on what's most important to the buyer. But just like home buying, too many franchise buyers look at 'curb appeal' which in a franchises case is the brand recognition. Everyone knows 5 guys and Subway and Menchies frozen yogurt. They get a ton of leads just because people want to own one. I always recommend working with an experienced broker who will do an evaluation, look at your financials, income desires, geography etc and recommend a few brands.

75% of our owners were not solely looking for a franchise in our specific industry but after investigating our model, customer base, financial opportunity and operational specifics they bought a franchise with us. It's the difference between curb appeal and paint color vs school district, square footage and condition. Buy a business based on the fundamentals not the brand.

 

[E-Z Glider]

I suggested this once before, but when I was in Athens, Greece last year, they had an Adventure Room that was all the rage and there were only a couple in the world. Everyone in the family loved it. Now it looks like there are 5 knock-offs in Athens alone and they're sprouting up all over the US. Would be extremely low up-front and operating costs. Talk about printing money. Someone run with this.

 

[Quez]

I want to open a retail store that caters to guys; meat, bacon, craft beer, booze, sauce & rubs, cigars, etc.

I'd love to stroll around this store. Might as well have some tools in there as well.

 

[Kraft...]

I suggested this once before, but when I was in Athens, Greece last year, they had an Adventure Room that was all the rage and there were only a couple in the world. Everyone in the family loved it. Now it looks like there are 5 knock-offs in Athens alone and they're sprouting up all over the US. Would be extremely low up-front and operating costs. Talk about printing money. Someone run with this.

A group at my office have done those a couple times. They had a blast: http://www.escapetheroomboston.com/

 

[Reaper]

I want to open a retail store that caters to guys; meat, bacon, craft beer, booze, sauce & rubs, cigars, etc.

I'd love to stroll around this store. Might as well have some tools in there as well.

I'm thinking Hooters type sales ppl would be cool too..... "Need help with that" as she bends down to help with your tool.

 

[Quez]

Might as well make it a Man's Club that requires a membership. Aka a Man Card.

 

[Tiger Fan]

I am the Dir of Franchise Development for a company not in the food industry but know a decent amount about franchising (I sell franchises and also assist our franchisees in site selection, demographics, build out).

My first suggestion if your dad is serious is to find a good franchise broker. They can help you determine best fit, introduce you to tools for evaluating opportunities, and the good ones only work with strong concepts. They get paid by the franchise company (not the candidate).

Best advice - buy a business based on your lifestyle and income goals. Don't fall in love with one concept. Be open to looking at various options. Food is a very competitive space and usually requires tight inventory controls, staffing turnover etc. Lots of operational complexity. If you've never been in food business before franchising is a great way to get in but there are hundreds of non-food franchises out there too.

I'm sure you could dedicate an entire thread to it, but what are some of the other franchise types you would recommend?

I don't have specific recommendations but just about any business model has been franchised. Real Estate, food, fitness, home repair, cleaning, senior care. There's a drug testing franchise. I've seen an olive oil store franchise before.Each model has different elements. An at-home cleaning franchise might cost 25-50k to open. A stand-alone restaurant? Millions.

B2B or B2C? Retail store or at-home? Owner operator model or semi-absentee developer?

It's kind of like asking 'What's your favorite house?' Depends on what's most important to the buyer. But just like home buying, too many franchise buyers look at 'curb appeal' which in a franchises case is the brand recognition. Everyone knows 5 guys and Subway and Menchies frozen yogurt. They get a ton of leads just because people want to own one. I always recommend working with an experienced broker who will do an evaluation, look at your financials, income desires, geography etc and recommend a few brands.

75% of our owners were not solely looking for a franchise in our specific industry but after investigating our model, customer base, financial opportunity and operational specifics they bought a franchise with us. It's the difference between curb appeal and paint color vs school district, square footage and condition. Buy a business based on the fundamentals not the brand.

Are people looking who turn to you guys for something to "own and manage" or "own" and have someone else "manage"

 

[mr roboto]

I am the Dir of Franchise Development for a company not in the food industry but know a decent amount about franchising (I sell franchises and also assist our franchisees in site selection, demographics, build out).

My first suggestion if your dad is serious is to find a good franchise broker. They can help you determine best fit, introduce you to tools for evaluating opportunities, and the good ones only work with strong concepts. They get paid by the franchise company (not the candidate).

Best advice - buy a business based on your lifestyle and income goals. Don't fall in love with one concept. Be open to looking at various options. Food is a very competitive space and usually requires tight inventory controls, staffing turnover etc. Lots of operational complexity. If you've never been in food business before franchising is a great way to get in but there are hundreds of non-food franchises out there too.

I'm sure you could dedicate an entire thread to it, but what are some of the other franchise types you would recommend?

I don't have specific recommendations but just about any business model has been franchised. Real Estate, food, fitness, home repair, cleaning, senior care. There's a drug testing franchise. I've seen an olive oil store franchise before.Each model has different elements. An at-home cleaning franchise might cost 25-50k to open. A stand-alone restaurant? Millions.

B2B or B2C? Retail store or at-home? Owner operator model or semi-absentee developer?

It's kind of like asking 'What's your favorite house?' Depends on what's most important to the buyer. But just like home buying, too many franchise buyers look at 'curb appeal' which in a franchises case is the brand recognition. Everyone knows 5 guys and Subway and Menchies frozen yogurt. They get a ton of leads just because people want to own one. I always recommend working with an experienced broker who will do an evaluation, look at your financials, income desires, geography etc and recommend a few brands.

75% of our owners were not solely looking for a franchise in our specific industry but after investigating our model, customer base, financial opportunity and operational specifics they bought a franchise with us. It's the difference between curb appeal and paint color vs school district, square footage and condition. Buy a business based on the fundamentals not the brand.

Are people looking who turn to you guys for something to "own and manage" or "own" and have someone else "manage"

We have both owner-operator (work in the business) and multi-unit developer. With us we still require franchisee to lead marketing and promotions efforts. They shouldn't delegate that nor the financial performance tracking. But ops can be delegated to manager. We even directly support the managers/staff in those cases so the franchisee isn't stuck as the middle man when ops issues arise.

 

[John Bender]

set me up roboto!

 

[mr roboto]

set me up roboto!

Lol. Really don't want to make this about my job. Just hoping to help the op.

 

[AcerFC]

Searched but found mostly threads about building sports franchises so if this has been touched on my apologies. My father has very recently contemplated seriously looking into opening a restaurant franchise of some sort and with fbgs being the place that has as large a collection of information as any others I was wondering if anyone had any interesting information about it? I realize a ton of additional details would likely need to be known as to his specific situation but any good information, horror stories, etc would be welcome as this isnt anywhere past the initial idea stage. Thanks for any and all stories/information!

Did your dad ever dig deeper or did the idea fizzle

 

[AcerFC]

you better have experience, be rich, have a lawyer and be willing to work The business 24/7. then in 18 months when you Go broke, have no regrets.

This from experience or just what you imagine

 

[AcerFC]

I am a teacher. I have been for 16 years. It is a good job, I make a lot of money and I enjoy teaching

However, I have always wanted to own my own business. I got accepted to a decent business school but hated it and changed my major after one semester. Really wanted to own the business for freedom more so than the money. I do realize that even when not working, I would be working since it is your business.

My wife has always been against me leaving teaching. I have an excellent pension plan and retirement fund, and it is very difficult for me to lose my job in a time where people are struggling, so I understand where she is coming from.

This morning she throws an idea out there that we should open a doughnut shop (franchise that we love from where we have our beach condo). There are none even remotely in our area and it can be very competitive with Dunkin Donuts. In fact, given the option, I think most people would like our place better.

The franchise fee is $30,000 and its 5% of weekly sales to them and then 3% of weekly sales to them for advertising fees. We dont have a lot in liquid assests which I am sure would turn them off to us. I would imagine I would be taking a huge pay cut if I were to leave teaching.

Is it possible to run a business and remain a teacher? Is it possible to not sink a ton of money and come out in the red if it does not succeed?

Its all a pipe dream right now

 

[Chadstroma]

I have had several customers that are franchise owners. All of which have multiple franchises- fast food, donuts, gas stations etc.

My discussions with them has pretty much seemed to be like any other business other than you really don't have to work out things like brand, advertising, logistics, etc. It takes a lot to get going (money, time, etc) but once you have success and go to multiple locations then you hire managers to do the day to day stuff.

The one customer I had the most in depth conversation with started out with gas stations but sold out of them and mostly has Dunkin' Donuts stores now. He said the gas stations were just too much work with a small margin. Typically you only had one employee so if they called in or had a problem- they called you and since they were open 24/7 he ended up working crazy hours. He said with Dunkin' he almost does nothing now and the margins are much better.

 

[Chemical X]

you better have experience, be rich, have a lawyer and be willing to work The business 24/7. then in 18 months when you Go broke, have no regrets.

This from experience or just what you imagine

I work in commercial lending.....too much experience. if you are not on sight or have family physically in the store, money will disappear. everyone has their own opinion and I don't mind trying something new, but gambling capital on a franchise in an industry one knows nothing is about is as risky as it gets.

the buy in is extremely high and it requires start up financing, many times backed by an SBA guarantee. The SBA will want you put up everything you have to secure the financing package, including real estate.

remember, the franchise fee is but one expense.....you need the real estate, the buildout, the equipment, the training. if I remember correctly, a startup franchise realistically requires upwards of 150k, depending on the franchise. I remember a moe's deal I worked on being in the 300k range.

 

[IC FBGCav]

I am a teacher. I have been for 16 years. It is a good job, I make a lot of money and I enjoy teaching

However, I have always wanted to own my own business. I got accepted to a decent business school but hated it and changed my major after one semester. Really wanted to own the business for freedom more so than the money. I do realize that even when not working, I would be working since it is your business.

My wife has always been against me leaving teaching. I have an excellent pension plan and retirement fund, and it is very difficult for me to lose my job in a time where people are struggling, so I understand where she is coming from.

This morning she throws an idea out there that we should open a doughnut shop (franchise that we love from where we have our beach condo). There are none even remotely in our area and it can be very competitive with Dunkin Donuts. In fact, given the option, I think most people would like our place better.

The franchise fee is $30,000 and its 5% of weekly sales to them and then 3% of weekly sales to them for advertising fees. We dont have a lot in liquid assests which I am sure would turn them off to us. I would imagine I would be taking a huge pay cut if I were to leave teaching.

Is it possible to run a business and remain a teacher? Is it possible to not sink a ton of money and come out in the red if it does not succeed?

Its all a pipe dream right now

If you are not going to put your all into your business don't expect anyone else to even come close.

 

[Steve Tasker]

I am a teacher. I have been for 16 years. It is a good job, I make a lot of money and I enjoy teaching

However, I have always wanted to own my own business. I got accepted to a decent business school but hated it and changed my major after one semester. Really wanted to own the business for freedom more so than the money. I do realize that even when not working, I would be working since it is your business.

My wife has always been against me leaving teaching. I have an excellent pension plan and retirement fund, and it is very difficult for me to lose my job in a time where people are struggling, so I understand where she is coming from.

This morning she throws an idea out there that we should open a doughnut shop (franchise that we love from where we have our beach condo). There are none even remotely in our area and it can be very competitive with Dunkin Donuts. In fact, given the option, I think most people would like our place better.

The franchise fee is $30,000 and its 5% of weekly sales to them and then 3% of weekly sales to them for advertising fees. We dont have a lot in liquid assests which I am sure would turn them off to us. I would imagine I would be taking a huge pay cut if I were to leave teaching.

Is it possible to run a business and remain a teacher? Is it possible to not sink a ton of money and come out in the red if it does not succeed?

Its all a pipe dream right now

I would say that it would be extremely difficult to run this business and remain a teacher full-time.

 

[fantasycurse42]

Looked into franchising a Jamba Juice... They wanted someone who would commit to 5 locations, had a lot of QSR experience, and a net worth of > $5M.

While their standards were high, I assume most successful/popular franchises have similar requirements, maybe (hopefully) slightly less.

I think Subway has the lowest barrier to entry.

 

[AcerFC]

Ok, that is why I asked. Thanks guys. Something to think about but probably not realistically doable for us unless I quit

 

[AcerFC]

you better have experience, be rich, have a lawyer and be willing to work The business 24/7. then in 18 months when you Go broke, have no regrets.

This from experience or just what you imagine

I work in commercial lending.....too much experience. if you are not on sight or have family physically in the store, money will disappear. everyone has their own opinion and I don't mind trying something new, but gambling capital on a franchise in an industry one knows nothing is about is as risky as it gets.

the buy in is extremely high and it requires start up financing, many times backed by an SBA guarantee. The SBA will want you put up everything you have to secure the financing package, including real estate.

remember, the franchise fee is but one expense.....you need the real estate, the buildout, the equipment, the training. if I remember correctly, a startup franchise realistically requires upwards of 150k, depending on the franchise. I remember a moe's deal I worked on being in the 300k range.

One of our thoughts was to have my BIL and sister work and manage the store for us. They are both out of work, live with my parents and have a kid.

 

[Chemical X]

Looked into franchising a Jamba Juice... They wanted someone who would commit to 5 locations, had a lot of QSR experience, and a net worth of > $5M.

While their standards were high, I assume most successful/popular franchises have similar requirements, maybe (hopefully) slightly less.

I think Subway has the lowest barrier to entry.

my recollection of the doctor's associates franchise agreement is that there is no territory protection. I think they prefer you to operate multiple locations but, hypothetically, they can open 8 shops side by side by side. also, I think their real estate arm negotiates your lease and subleases to you. could be a 10 year lease and god forbid you don't make the 10 years, etc.

 

[Chemical X]

you better have experience, be rich, have a lawyer and be willing to work The business 24/7. then in 18 months when you Go broke, have no regrets.

This from experience or just what you imagine

I work in commercial lending.....too much experience. if you are not on sight or have family physically in the store, money will disappear. everyone has their own opinion and I don't mind trying something new, but gambling capital on a franchise in an industry one knows nothing is about is as risky as it gets.

the buy in is extremely high and it requires start up financing, many times backed by an SBA guarantee. The SBA will want you put up everything you have to secure the financing package, including real estate.

remember, the franchise fee is but one expense.....you need the real estate, the buildout, the equipment, the training. if I remember correctly, a startup franchise realistically requires upwards of 150k, depending on the franchise. I remember a moe's deal I worked on being in the 300k range.

One of our thoughts was to have my BIL and sister work and manage the store for us. They are both out of work, live with my parents and have a kid.

I think the cost is more than you think it is..........I used to joke that you need to be a millionaire to open a mcdonald's and many other franchises. I don't think this is a joke........if you have liquidity that exceeds 500k do you really want to run a jimmy john's or quiznos? best way to lose that money quickly imo.

 

[AcerFC]

you better have experience, be rich, have a lawyer and be willing to work The business 24/7. then in 18 months when you Go broke, have no regrets.

This from experience or just what you imagine

I work in commercial lending.....too much experience. if you are not on sight or have family physically in the store, money will disappear. everyone has their own opinion and I don't mind trying something new, but gambling capital on a franchise in an industry one knows nothing is about is as risky as it gets.

the buy in is extremely high and it requires start up financing, many times backed by an SBA guarantee. The SBA will want you put up everything you have to secure the financing package, including real estate.

remember, the franchise fee is but one expense.....you need the real estate, the buildout, the equipment, the training. if I remember correctly, a startup franchise realistically requires upwards of 150k, depending on the franchise. I remember a moe's deal I worked on being in the 300k range.

One of our thoughts was to have my BIL and sister work and manage the store for us. They are both out of work, live with my parents and have a kid.

I think the cost is more than you think it is..........I used to joke that you need to be a millionaire to open a mcdonald's and many other franchises. I don't think this is a joke........if you have liquidity that exceeds 500k do you really want to run a jimmy john's or quiznos? best way to lose that money quickly imo.

You are probably right. I have zero clue how much it takes to open and operate.

 

[humpback]

you better have experience, be rich, have a lawyer and be willing to work The business 24/7. then in 18 months when you Go broke, have no regrets.

This from experience or just what you imagine

I work in commercial lending.....too much experience. if you are not on sight or have family physically in the store, money will disappear. everyone has their own opinion and I don't mind trying something new, but gambling capital on a franchise in an industry one knows nothing is about is as risky as it gets.

the buy in is extremely high and it requires start up financing, many times backed by an SBA guarantee. The SBA will want you put up everything you have to secure the financing package, including real estate.

remember, the franchise fee is but one expense.....you need the real estate, the buildout, the equipment, the training. if I remember correctly, a startup franchise realistically requires upwards of 150k, depending on the franchise. I remember a moe's deal I worked on being in the 300k range.

One of our thoughts was to have my BIL and sister work and manage the store for us. They are both out of work, live with my parents and have a kid.

Sorry for being blunt, but this has disaster written all over it.

 

[James Daulton]

Every Chipotle I've ever seen has always been crowded. Owners have to be making a mint.

 

[Chemical X]

you better have experience, be rich, have a lawyer and be willing to work The business 24/7. then in 18 months when you Go broke, have no regrets.

This from experience or just what you imagine

I work in commercial lending.....too much experience. if you are not on sight or have family physically in the store, money will disappear. everyone has their own opinion and I don't mind trying something new, but gambling capital on a franchise in an industry one knows nothing is about is as risky as it gets.

the buy in is extremely high and it requires start up financing, many times backed by an SBA guarantee. The SBA will want you put up everything you have to secure the financing package, including real estate.

remember, the franchise fee is but one expense.....you need the real estate, the buildout, the equipment, the training. if I remember correctly, a startup franchise realistically requires upwards of 150k, depending on the franchise. I remember a moe's deal I worked on being in the 300k range.

One of our thoughts was to have my BIL and sister work and manage the store for us. They are both out of work, live with my parents and have a kid.

I think the cost is more than you think it is..........I used to joke that you need to be a millionaire to open a mcdonald's and many other franchises. I don't think this is a joke........if you have liquidity that exceeds 500k do you really want to run a jimmy john's or quiznos? best way to lose that money quickly imo.

You are probably right. I have zero clue how much it takes to open and operate.

I think you answered your own question here................

 

[eoMMan]

you better have experience, be rich, have a lawyer and be willing to work The business 24/7. then in 18 months when you Go broke, have no regrets.

This from experience or just what you imagine

I work in commercial lending.....too much experience. if you are not on sight or have family physically in the store, money will disappear. everyone has their own opinion and I don't mind trying something new, but gambling capital on a franchise in an industry one knows nothing is about is as risky as it gets.the buy in is extremely high and it requires start up financing, many times backed by an SBA guarantee. The SBA will want you put up everything you have to secure the financing package, including real estate.

remember, the franchise fee is but one expense.....you need the real estate, the buildout, the equipment, the training. if I remember correctly, a startup franchise realistically requires upwards of 150k, depending on the franchise. I remember a moe's deal I worked on being in the 300k range.

One of our thoughts was to have my BIL and sister work and manage the store for us. They are both out of work, live with my parents and have a kid.

I think the cost is more than you think it is..........I used to joke that you need to be a millionaire to open a mcdonald's and many other franchises. I don't think this is a joke........if you have liquidity that exceeds 500k do you really want to run a jimmy john's or quiznos? best way to lose that money quickly imo.

Yeah, some of the "cheaper" ones are 250k.

 

[Chemical X]

Every Chipotle I've ever seen has always been crowded. Owners have to be making a mint.

not a franchise, company owned 99.9%...................only ones not crowded are the 40 or so closed for e-coli in the NW?

 

[James Daulton]

Every Chipotle I've ever seen has always been crowded. Owners have to be making a mint.

not a franchise, company owned 99.9%...................only ones not crowded are the 40 or so closed for e-coli in the NW?

I bet those will crowd up as soon as they open. People love them some Chipotle.

 

[General Malaise]

Every Chipotle I've ever seen has always been crowded. Owners have to be making a mint.

not a franchise, company owned 99.9%...................only ones not crowded are the 40 or so closed for e-coli in the NW?

I bet those will crowd up as soon as they open. People love them some Chipotle.

It's ####### dog food. I can't believe people enjoy this tripe. Not sure I share your optimism in them picking up where they left off...they poisoned a #### ton of people up here.

 

[Chemical X]

this is a site I use a lot..................

https://www.sba.gov/content/franchise-registry-approved-brands

 

[culdeus]

Buddy came into a ton of money from a death in family. Before death dad puts like 5 auto body work franchises in a trust. Not sure which franchise.

Guy turned that into 20 and is probably the richest person I know cash flow wise.

Food is for suckers.

 

[James Daulton]

Every Chipotle I've ever seen has always been crowded. Owners have to be making a mint.

not a franchise, company owned 99.9%...................only ones not crowded are the 40 or so closed for e-coli in the NW?

I bet those will crowd up as soon as they open. People love them some Chipotle.

It's ####### dog food. I can't believe people enjoy this tripe. Not sure I share your optimism in them picking up where they left off...they poisoned a #### ton of people up here.

WTF are you talking about? It's really good "fast food." Maybe it's not as good as some one off authentic mexican place, but their burritos are mighty tasty. You can watch them grill the chicken up before they cut it up for the burritos for ####s sake.

 

[Cjw_55106]

I've never been to a Chipotle that wasnt 15 people deep. Personally, I think the "tripe" they serve is better than nearly every other fast food joint.