Any Franchise Owners?

[NVWSSV]

If you own a Franchise, I'd like to get your general thoughts on it.

What type do you own?
What part of the country?
Difficulty starting?
Difficulty managing?
Staffing issues?
Do you make a comfortable living?
Are you able to take time off very often?

Anything else you could tell me is much appreciated.

 

[Mr. Mach-ete]

My brother owns a franchise in Pittsburgh...

It's was chicken stand and it was hard starting at first but once they put seahawk on the menu things started to take off and now they're making a killin. Local folks say that seahawks taste just like chickens.

See ya Sunday... :-D

 

[NVWSSV]

My brother owns a franchise in Pittsburgh...

It's was chicken stand and it was hard starting at first but once they put seahawk on the menu things started to take off and now they're making a killin. Local folks say that seahawks taste just like chickens.

See ya Sunday... :-D

After the game’s over, I'll let ya know how Steeler tastes cuz we're gonna eat your defense alive!

Sunday will be fun, back to topic now please.

 

[Niko_Fx]

The good = You are using a well-known name, you will get a lot of help setting the whole place up.

The bad = Paying royalty.

Advertising is the key... possibly the most important factor when owning a franchise. Use local magazines, newspapers, yellow pages, etc.. and try to include coupons when possible, that way you will know if your advertisement is working as your customers will bring it along with them.

Regarding employees I would suggest searching for honesty first and then skills. If you're going to operate your own business you won't have any vacations whatsoever unless you have someone you trust that can take care of every operation without stealing a penny. If you own the place you shouldn't have problems with your staff... after all it is you who decides who works at your place.

Part of the country? It depends... I would use highly populated cities, but you never know.. If you're bringing a new good / service to the local market of a small town you may end up being succesful.

Managing your own business is not hard, but it requires dedication and time.

What are you looking into anyway? Restaurant? Shipping and Packaging? Clothing?

 

[NVWSSV]

Thanks Niko Fx. I'm thinking about some type of home furnishings retail store.

 

[RDJ]

I do not own a franchise .. but I almost did it taught me a lot ....

When I got laid off from Dell in Austin I started looking into opening an auto parts store. I saw a need to a high performance auto parts store north of Austin. I decided that NAPA was where I was going to look ... I sent them an email and got a response back that they would love to help me ... over the next few months I found out the following:

1. You need a minimum of 10% of the start up costs in Cash. I was looking at 500,000 so I needed about 50K minimum the banks were not kind. They all said that I had a good plan (NAPA helped me come up with the estimate numbers) but I did not have the asetts (net worth) to back up the loan. they wanted 250K minimum.

2. Experience. All my auto experience was personal and I had no parts store management experience. Again, the banks were not kind. They were very uncomfortable with that in spite of the fact that NAPA said they would be on board with me for the first few months to help with training me and my employees.

3. I had employees that were currently in the business ready to quit their jobs and come to work for me. I had a couple of other friends that I trusted lined up to come to work for me ... I had investors that got me close to the 50K I needed but because I was short they wouldn't talk to me seriously.

bottom line ... it is tough to get into a franchise buisness ... you HAVE to have a NET worth of at least 250K or have someone with that net worth on board and willing to put it up as security for the loan. You have to have experience or a partner that has experience .... and you have to be willing to do some groveling ... if the buiness tanks you will STILL have to make good on the loan.

The other thing is that you need to be able to go at least a year without salary and like others have said you will have little time for vacation or anything else fun esp. the first year.

I always thought the small business administration was for just that .. small businesses that were start-ups and needed a helping hand ... phuc that the small business administration is there to guarentee banks payback on good loans with a High probability of success .. and the BANK is who decides what the rules are ...

so .. go for it .. but go into it with your eyes wide open and with low expectations for sucess at the bank ... that way your pleasently surprised if it goes through instead of bitterly disappointed if it doesn't ...

 

[NVWSSV]

Thank you RDJ. It's always about the money isn't it. Hopefully, with my fingers crossed, that won't be a big issue for me in the next 6 months.

 

[cobra2547]

I am currently in a Dairy Queen franchise and used to be in a Dunkin Donut franchise some years back. The fees are not that bad considering you using thier name. The biggest problem is you have to do what the company want such as participating in new products (which is good for business) new equipment and anything they want you to get even if you don't think need it or afford it. As for income I do ok not rich but live comfortable and buy what I want within reason. Time off can be a problem I own a seasonal business so I am open March-October with no time off 7 days a week and take November- Feb. off no work and I do anything I want. So I am enjoying time now. I bought an existing store and put 20 % down and financed the rest so their was no income requirement from the company before I started. There is so much more info I can tell you if you want just pm me.

 

[Lethal SVT97]

My brother owns a franchise in Pittsburgh...

It's was chicken stand and it was hard starting at first but once they put seahawk on the menu things started to take off and now they're making a killin. Local folks say that seahawks taste just like chickens.

See ya Sunday... :-D

Another Sphitburgh Steeler fan. :nonono:

 

[BK24]

Be ready for taxes as well. Thats one of the worst parts.

 

[Svets96]

My Dad and I own a Bruster's Ice Cream franchise. Well lets' put it this way you do work 7 days a week including staying open year round, only days you get off are thanksgiving and christmas. You have to be on call when you are busy in the summer and do alot of promotional things in the community, they want $30k up front for the franchise plus what the building and land costs. You have utilities, mortgages to pay and dont' forget about those lousy royalty fees. Managing lets say you do need a manager to make sure everything is running smoothly but overtime you'll be capable of doing this. Also you must attend business meetings for new items and ways to make more profits out of your store. We own 2 stores and its a Biatch one does well the other not as good, we haven't took a paycheck for awhile now. My dad and I have been involved in this for 6 yrs. It really sucks not able to leave or have peace and quit for once in your life everything is always going 1,000mph a minute it sucks life is to short to be working/running/worrying your a@@ off all the time. So my best advise to you is keep doing what your doing or I hate to say but now a days it's better to work for someone then yourself. Maybe even come up w/ your own franchise to? Believe me buying into a franchise is never worth it, its a bad investment I think. You figure you wait for ten to twenty five yrs. for a return? The hell with that. This is just my $.02 Good luck to what ever you do, sorry to sound so neg. and for the long post.

 

[RDJ]

Apparently all that overtime phucs with your spelling too! LOL j/k ...

 

[Thrust]

This is a pretty good thread. Im also intrested in hearing more from others that have franchise experience.

 

[holtsch]

I've looked into doing a franchise. I've come to the conclusion that it depends on what type of business you're looking at starting as well as your commitment, and $$ involved that determines whether or not you should open a franchise or your own business.

 

[Outlaw99]

a close friend and I are partners in a Colortyme franchise in north carolina. been open 2 years. finally reached profit level. $75,000.00 to start up. very lucrative on the back end. opening a second store next month.

 

[umachme]

My brother owns 4 Hungry Howies in Florida and from what I understand they don't take that much.....but its not a HUGE name like Papa Johns...

 

[JDStud6]

One of my good friends has a Smoothie King in Augusta, GA. It has a relatively low cost to start up. He got a good location, which is pretty expensive. There are 3 guys who are invested in it, so they pretty much work 1 of them at a time and have another helper there too. Its doing pretty well though.

My folks looked into opening a Steak & Shake and it was pretty expensive.

JD

 

[FordSVTFan]

I am a silent partner in a Starbucks and Panera Bread. They both have expensive royalty deals.

 

[SinisterSHO]

I think as far as location goes, you should look for the areas that are being developed. The area I work in over the past year alone as blown up so much, the reason? An interstate on/off ramp is being built down the road. Its confirmed that its happening, but up until about 5 months ago, it wasn't. Theres all kinds of stores around the area now. If you're the first one in a new area, you can make your store convienent for the people that already live in that area. Opening a store in a location near a similiar store is only going to be direct competition.

 

[Stalker27]

a close friend and I are partners in a Colortyme franchise in north carolina. been open 2 years. finally reached profit level. $75,000.00 to start up. very lucrative on the back end. opening a second store next month.

Yes i know this is a very old thread but some advice would be greatly appreciated. Did you get a loan for that much or did you put it on credit cards? ANy new people in here have any comments to add?

There is a buisness in Vegas that franchises and would put Baskin Robbins here out of buisness if i could get it going. I just need the proper steps to take as i have no clue who to talk to