Armed Polite Society
Main Forums => The Roundtable => Topic started by: Ben on October 15, 2018, 08:43:19 AM
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This was surprising to me. The startup costs not so much as the estimated annual income.
I'm not sure I'd want a McDonalds and all the headaches that would go with it for only $150K/yr.
$2mil*5% = $100K if that money goes into even a very conservative index fund or similar. Way more if you figure a 20-30 year S&P run. And all the work you're doing is getting up to refill your martini glass.
https://www.foxbusiness.com/retail/mcdonalds-franchise-cost
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Income is the downfall to franchises. You can only run them at $xxx capacity and earn $xxx a year. The best you can hope for is to max out profitability and sell the franchise for additional profit. But many are time-sinks.
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Income is the downfall to franchises. You can only run them at $xxx capacity and earn $xxx a year. The best you can hope for is to max out profitability and sell the franchise for additional profit. But many are time-sinks.
Yeah, the article didn't mention potential profits from building and selling the franchise, which would put the investment more in line with real estate, where you might not be making a big annual income, but are banking on appreciation.
Still (and again, the article was sparse) it seems like a Jesus Chicken would be a better investment if you want the work of a fast food joint.
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Isn't $150k the guaranteed minimum if you run the place their way? I seem to remember that being part of the model.
But yeah, probably not the best investment once you include your time.
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Iirc, $50,000 got you a McDonalds franchise in the mid 70's.
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You can’t get into a Jesus Chicken franchise without lots of Jesus Chicken experience. That’s why the franchise fee is so low
There is constant advertisements for Snap On, MAC, Matco, and Cornwell franchises in my industry and the terms absolutely suck for the franchise...if you are good, lucky, and have a good route you might make it if you lack any or all of those you will lose your shirt and then some
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You can’t get into a Jesus Chicken franchise without lots of Jesus Chicken experience. That’s why the franchise fee is so low
Chik-fil-a has very high standards and is very strict about who they allow to have a franchise. The upfront cost for the franchisee is next to nothing, but Chik-fil-a controls every aspect of the build, location, and ownership.
I looked into their franchise about 10 years ago and new there was no chance of me getting a franchise.
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I'm sure your Church of Satan membership card that you included with your application didn't help.
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From my understanding of it, and from what I've seen locally- you need to own 4-5 McDonald's franchises to make it worthwhile.
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Exactly. Multiple franchises and paying someone to run the day to day is where it's at. Otherwise you're just a glorified store manager.
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I'm sure your Church of Satan membership card that you included with your application didn't help.
Hey, they asked for church affiliations. They didn’t say what kind of church.
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I'd rather have a White Castle as in my town there are three McDs already.
Also three BKs so I'd stand out by being different.
But they don't franchise so I'd have to call it Whitey Castle or White Stronghold or something like that.
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In this neck o' the woods, basically ALL the McDonalds are owned by one or the other of two franchisees, one of whom is Hispanic. Take that $150,000/annum and multiply it by twenty or thirty locations, and suddenly you're looking at some real money.
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You can’t get into a Jesus Chicken franchise without lots of Jesus Chicken experience. That’s why the franchise fee is so low
Incorrect. There aren't many Chick-fil-As around here, so when one opens it generates a lot of press. Since there were none here a very few years ago, clearly the people who bought the franchises had no prior experience. It's not a requirement, and I'm not even convinced that corporate would welcome it. They seem to be more interested in finding one-person/one store franchisees rather than the chain franchisees like the McDonalds around here.
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from https://www.chick-fil-a.com/Franchising/Franchise (https://www.chick-fil-a.com/Franchising/Franchise)
Take the next step
The Chick-fil-A franchise opportunity represents an exceptional offering in the quick-service restaurant industry. For an initial financial fee of $10,000 selected franchisees (who we call Operators) are granted the rights necessary to operate a franchised Chick-fil-A Restaurant business. Chick-fil-A, Inc. is also looking for people interested in franchised locations in Canada for an initial investment of $15,000 (CAD). The Chick-fil-A franchise opportunity requires that the individual be free of any other active business ventures and operate the restaurant on a full-time, hands-on basis.
Chick-fil-A Operators must successfully complete an extensive, multi-week training program prior to taking over operation of a franchised Chick-fil-A restaurant business. With additional development courses and franchise support available, Chick-fil-A Operators are equipped to handle decisions and reap the rewards of a challenging business.
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Challenging business doesn’t even begin to describe the restaurant industry.
It sucks you of your soul.
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Dairy Queen is $400k.
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Dairy Queen is $400k.
Dairy Queen still exists?
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Dairy Queen still exists?
What is this hellish, North Korea landscape you inhabit? No Dairy Queen?
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There is constant advertisements for Snap On, MAC, Matco, and Cornwell franchises in my industry and the terms absolutely suck for the franchise...if you are good, lucky, and have a good route you might make it if you lack any or all of those you will lose your shirt and then some
A good friend of mine just closed his 10 month old matco franchise last month. I warned him that from what I read, matco makes more on franchising than actual tool sales; but they have some really good sales reps trying to bring people on board.