If you had 50k to start a business or open a franchise what would you do?
- Thread starter Jhill
- Start date
I think most people who start franchises end up regretting it. They work their ass off and don't earn much.
You can barely pay for a well known franchise license with 50k...not to mention a storefront.
You can barely pay for a well known franchise license with 50k...not to mention a storefront.
Service based franchises like cleaning, auto-related are the way to go..
Retail ranchises are generally cheap, its the ongoing roylaties and advertising fees that kill you.
If you're willing to work the franchise on your own, you will do alright. It's long hours though.
If you want to be an absentee owner, you will need about 3 franchise based storefronts to do make a decent living.
Let me clarify. I meant 50k in cash to start before taking out a loan. I realize it takes more than 50k to open a franshise.
I'd open a Coldstone Creamery. I can't find the referance but I read somewhere the are one of the biggest money making franchises.
what are your skills?
50k is more than enough for someone to design you a corporate identiy, logos, website, advertisements for 6 months or a year, all office supplies (cards, letterheads)
plus you'll have plenty leftover for your first year of non budgeted expenses
50k is more than enough for someone to design you a corporate identiy, logos, website, advertisements for 6 months or a year, all office supplies (cards, letterheads)
plus you'll have plenty leftover for your first year of non budgeted expenses
Kumon Math & Learning center.
I was seriously thinking about this.. I have all the material to get started, but i have other stuff going on at the mo'.
The franchises worth going for have the good territories/locations snatched up by investors already.. sucks eggs.
Kinko's just got bought by fed ex.. that's a good idea if you can get in. but you need a good location.. and you have to worth like $400,000 if i remember :Q
I was seriously thinking about this.. I have all the material to get started, but i have other stuff going on at the mo'.
The franchises worth going for have the good territories/locations snatched up by investors already.. sucks eggs.
Kinko's just got bought by fed ex.. that's a good idea if you can get in. but you need a good location.. and you have to worth like $400,000 if i remember :Q
I'd run my own business my own way and out do the franchise competition in every way I possibly could.
And yes, Subway is one of the easiest, least expensive franchises to buy. That's why there are so many Subways around, even in some of the smallest cities.
And yes, Subway is one of the easiest, least expensive franchises to buy. That's why there are so many Subways around, even in some of the smallest cities.
Way too many unknown variables to say, but I'm not sure what kind of franchise you're considering for $50K. Consider the costs of opening a lowly (but proven) Valvoline Instant Oil Change franchise:
LICENSEE EQUITY AND CASH REQUIREMENTS
To ensure that our Licensees have adequate capital to work through the early growth periods, we generally require that an individual licensee show a net worth of $250,000 (single unit), exclusive of equity in his or her primary residence, with $200,000 (single unit) of that $250,000 in cash, marketable securities, or other liquid assets.
A VIOC Licensee can generally expect the following cash expenditures for each unit developed:
- $30,000 License fee for first center ($20,000 for each additional center)
- 6% of Adjusted Gross Revenues annually
- $25,000 to $40,000 for operating equipment, tools and furniture, will be secured prior to center opening
- $5,000 to $10,000 for initial advertising and promotion expenditure is required upon receipt of written authorization to open the center.
- $3,000 to $7,500 for Training costs are what the Licensee/Developer will spend on manager's wages, lodging, food and transportation while training in Lexington.
And we haven't even gotten to the construction and real property costs yet.
Estimated total investment for establishment of each operating unit if Real Property, Service Equipment and Signage is leased = $117,750 to $188,760
Estimated total investment for establishment of each operating unit if Real Property, Service Equipment and Signage is purchased = $776,500 to $1,207,000
LICENSEE EQUITY AND CASH REQUIREMENTS
To ensure that our Licensees have adequate capital to work through the early growth periods, we generally require that an individual licensee show a net worth of $250,000 (single unit), exclusive of equity in his or her primary residence, with $200,000 (single unit) of that $250,000 in cash, marketable securities, or other liquid assets.
A VIOC Licensee can generally expect the following cash expenditures for each unit developed:
- $30,000 License fee for first center ($20,000 for each additional center)
- 6% of Adjusted Gross Revenues annually
- $25,000 to $40,000 for operating equipment, tools and furniture, will be secured prior to center opening
- $5,000 to $10,000 for initial advertising and promotion expenditure is required upon receipt of written authorization to open the center.
- $3,000 to $7,500 for Training costs are what the Licensee/Developer will spend on manager's wages, lodging, food and transportation while training in Lexington.
And we haven't even gotten to the construction and real property costs yet.
Estimated total investment for establishment of each operating unit if Real Property, Service Equipment and Signage is leased = $117,750 to $188,760
Estimated total investment for establishment of each operating unit if Real Property, Service Equipment and Signage is purchased = $776,500 to $1,207,000
Church's Chicken, and center it in Inglewood, those things get crowded, and last I heard their franchise fee is ~$18k
yup, my hometown - population 2500
2 gas stations, 2 bars, 2 banks
not a single stoplight, yet we've had a Subway for years.
Generally, the value of personal property (home, cars, art, etc.) is not included in your net worth by the Franchise requirements.
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