Anyone here own a franchise?

[Sho'Nuff]

Amongst myriad other potential business opportunities, I have been pushing around the idea of opening up a franchise in the greater Portsmouth NH/southern Maine area.

Does anyone on the board have any experience in this area? Particularly with opening a restaurant franchise? If so, where can I get more information on the economics of the franchise as a whole? It would seem that I would at least need some information re: the franchise's expected margins before I could put together a competent business plan and begin trying to raise capital.

Are there any other forums specializing in this area? Yeah, Yeah, Yeah, I know that google is my friend. But all google and bing are pointing me too are websites that are . . . ahem . . . less than credible.

Thanks in advance,

Sox.

 

[Barfo]

http://forums.anandtech.com/showthread.php?t=2074082

 

[Sho'Nuff]

Why did you link to my own thread?

 

[ebaycj]

Amongst myriad other potential business opportunities, I have been pushing around the idea of opening up a franchise in the greater Portsmouth NH/southern Maine area.

Does anyone on the board have any experience in this area? Particularly with opening a restaurant franchise? If so, where can I get more information on the economics of the franchise as a whole? It would seem that I would at least need some information re: the franchise's expected margins before I could put together a competent business plan and begin trying to raise capital.

Are there any other forums specializing in this area? Yeah, Yeah, Yeah, I know that google is my friend. But all google and bing are pointing me too are websites that are . . . ahem . . . less than credible.

Thanks in advance,

Sox.

I've heard Jersey Mike's subs is a good franchise to open.

 

[ponyo]

My advice: Don't do it!

 

[nickbits]

http://forums.anandtech.com/showthread.php?t=2074082

fail

 

[chipy]

i don't but there are a handful of franchises i like:

dunkin donuts
sonic
burger king
wing stop

as with most stores, it's all about location, location, location! trust me. there's a BK i go to as well as a DD and they're both busy most of the time. it's because they're on one of the main roads and plenty of people who work nearby go there for coffee and burgers. not sure what the margins are or how much it costs to start one but i'm a repeat customer of both.

 

[spidey07]

I think Amused does. I've got a few friends that do and all agree about location, location, location. There's even software and/or services you can do to find where you think you'd be most successful.

And also about Jersey Mike's. Their subs are incredible and whenever I go there plenty of customers, enough that they staff like 6-8 people.

 

[MagnusTheBrewer]

Franchises come in every flavor you can imagine. From turnkey to just providing a nationally recognized name and logo'd paper products. If you're looking into a restaurant franchise purely as an investment, DON'T.

Research the franchises that service the particular style or food you like. Almost all franchise operations will provide demographic info and help with a business plan. That's where the different types of franchises come in. From McD's university to Jamba Juice's here's your official cups, next! Each franchise offers a unique combination. I recommend going online and requesting info packets from the franchises that interest you. It will require a great deal of homework, phone calls and comparisons before you can determine which is best for you. One thing to keep in mind is that this education process may convince you that a franchise is not for you.

You have to be brutally honest with yourself with regards to how much time, money and, energy you wish to put into the project. Like any education worth having, this process will take time. A year is not an unreasonable length of time to spend on this research.

 

[ponyo]

If you have $500k-$1 million in liquid asset needed for a decent franchise, you're better off keeping the money in the bank and working your corporate job.

If you're still crazy, go work for one of the franchises you're interested in. Sort of undercover work. You should never buy a franchise without first working it to see what's really like.

Let me repeat post.

My advice: Don't do it!

 

[deadlyapp]

I worked at a quiznos for a few months while in transition to a better job and got pretty close to the owners. They owned four separate stores within the general area and three of them did very well, but the one that I was at did terrible. It was definitely attributed to the location, but they didn't know that when they originally opened it. Even though all it did was lose money the corporate HQ or whatever wouldn't let them close it until forever.

I will simply reiterate - It's all location.

And do you want to deal with young kids all day? All you're going to attract at a min wage is 16 year olds or students. And you shouldn't expect that you'll be able to just sit by. Unless you have a ton of separate income, you'll probably have to manage on a day to day basis until you can feel comfortable handing over that sort of work to someone else.

 

[Sho'Nuff]

If you have $500k-$1 million in liquid asset needed for a decent franchise, you're better off keeping the money in the bank and working your corporate job.

What makes you think I would put a ton of my own money into this? 999/1000 businesses are opened on borrowed money. Franchises included. The key, really, is being able to put together a sound business plan so that you can convince an investor/lender that you aren't a" "bad" risk, and that they aren't just handing their money to some schmo on the street.

I guess I should be a little more clear about my background. I'm a practicing IP attorney with as substantial background in business, licensing, and contracting. I understand to a fairly significant degree the economics behind opening a business. And yes, I understand that running a franchise will take a good deal of work on my part. Ultimately a franchise is a business, like any other.

That being said, I do not have any experience in franchising. In my book, rule #1 of any business is to recognize when you don't know something, and connect with someone who can provide the needed information. Hence, my original post. I'm not looking for a yay or nay from the massess. Rather, I'm looking to speak with someone who has actually run a franchise, for better or for worse.

Hopefully that clears things up some. If not, let me know and I'll try to spell out what I am looking for more clearly.

 

[RKS]

You may be better off doing something like going to law school and hanging your own shingle.

 

[MikeyIs4Dcats]

What makes you think I would put a ton of my own money into this? 999/1000 businesses are opened on borrowed money. Franchises included. The key, really, is being able to put together a sound business plan so that you can convince an investor/lender that you aren't a" "bad" risk, and that they aren't just handing their money to some schmo on the street.

I guess I should be a little more clear about my background. I'm a practicing IP attorney with as substantial background in business, licensing, and contracting. I understand to a fairly significant degree the economics behind opening a business. And yes, I understand that running a franchise will take a good deal of work on my part. Ultimately a franchise is a business, like any other.

That being said, I do not have any experience in franchising. In my book, rule #1 of any business is to recognize when you don't know something, and connect with someone who can provide the needed information. Hence, my original post. I'm not looking for a yay or nay from the massess. Rather, I'm looking to speak with someone who has actually run a franchise, for better or for worse.

Hopefully that clears things up some. If not, let me know and I'll try to spell out what I am looking for more clearly.

a good friend of mine's in laws owned 10 local Subways. While it provided them a good living, they worked a lot. And it was a very long road to getting to a point where it was worth it (over 10 years). Statistics show over half all restaurants fail in the first year, another half of the remaining in the second year. Not sure what segment of that is frachise locations, but it is a VERY fickle market.

And whether it's your money in the bank, or borrowed money, if you lose it, it's still gone. At least if it was your money, you wouldn't have to lose it and then pay it back. As far as your convincing a bank to lend, restaurants are so much more about location, the market, and the overall service and quality than who runs them. A great owner can still lose his business in the blink of an eye.

 

[MagnusTheBrewer]

What makes you think I would put a ton of my own money into this? 999/1000 businesses are opened on borrowed money. Franchises included. The key, really, is being able to put together a sound business plan so that you can convince an investor/lender that you aren't a" "bad" risk, and that they aren't just handing their money to some schmo on the street.

I guess I should be a little more clear about my background. I'm a practicing IP attorney with as substantial background in business, licensing, and contracting. I understand to a fairly significant degree the economics behind opening a business. And yes, I understand that running a franchise will take a good deal of work on my part. Ultimately a franchise is a business, like any other.

That being said, I do not have any experience in franchising. In my book, rule #1 of any business is to recognize when you don't know something, and connect with someone who can provide the needed information. Hence, my original post. I'm not looking for a yay or nay from the massess. Rather, I'm looking to speak with someone who has actually run a franchise, for better or for worse.

Hopefully that clears things up some. If not, let me know and I'll try to spell out what I am looking for more clearly.

The rule #1 of any food service business is to tell everyone everything. I find that goes contrary to the thinking of IP Attorneys. I've done the research and decided franchises weren't for me. If you can get past your natural reticence, ask what you'd like to know.

 

[Sho'Nuff]

You may be better off doing something like going to law school and hanging your own shingle.

What part of "I am a practicing IP attorney" suggests that I need to go to law school? I completed law school years ago, have passed a couple of bar exams, and am admitted to practice before 4 different courts!

 

[Net]

What part of "I am a practicing IP attorney" suggests that I need to go to law school? I completed law school years ago, have passed a couple of bar exams, and am admitted to practice before 4 different courts!

that's pretty impressive, and you want to open something like a quizno's? lol, why not open a business in something your good at like law? My friends dad makes $450 an hour in his small law business. Instead you want to be that guy thats like.... "whoa whoa whoa, easy on the mustard!"

I read about it before too. From what I read you need around $250,000 - $300,000 of non-borrowed money to be considered. Here are some requirements for McDonalds: http://franchises.about.com/od/mostpopularfranchises/a/mcdonaldscosts.htm

 

[RKS]

What part of "I am a practicing IP attorney" suggests that I need to go to law school? I completed law school years ago, have passed a couple of bar exams, and am admitted to practice before 4 different courts!

What part of a simple joke don't you get? :\

 

[Sho'Nuff]

that's pretty impressive, and you want to open something like a quizno's? lol, why not open a business in something your good at like law? My friends dad makes $450 an hour in his small law business. Instead you want to be that guy thats like.... "whoa whoa whoa, easy on the mustard!"

I read about it before too. From what I read you need around $250,000 - $300,000 of non-borrowed money to be considered. Here are some requirements for McDonalds: http://franchises.about.com/od/mostpopularfranchises/a/mcdonaldscosts.htm

In the area of the country I want to live (New Hampshire/Maine), the market for patent attorneys is very, very small. There are roughly 45 patent attorneys in the entire state of Maine, and maybe 100 in New Hampshire. Compare that to Boston or DC, where there are thousands of practicing patent attorneys, and you can see the issue I face. As to practicing a different type of law, that is a possibility I am investigating as well. But that type of transition is harder to make than you might think, and is complicated by the fact that I have been in the intellectual property arena for almost 10 years. That being said, I am exploring any and all options for making a living in my geographical location of choice.

And no, I don't want to be the guy who is saying "whoa whoa whoa, easy on the mustard." I want to be the guy who runs 5-10 franchise locations and manages 100+ employees. I'll leave the condiment responsibilities to my junior managers.

As to the money required to open a franchise, you can assume that is not an issue. The one virtue of patent law is that it pays the bills better than most jobs out there.

 

[Crono]

The world needs more Dunkin' Donuts.

If I ever get a decent chunk of cash, I'm going to start a gourmet coffee cart franchise in NYC and then other northeast cities. Call it Crono's Coffee and specialize in single origin coffees in sample to extra large cups of coffee.

Mmm.

 

[nick1985]

http://forums.anandtech.com/showthread.php?t=2074082

You showed him....