Questions about owning a restaurant franchise

[jme5343]

Went to eat at the DQ where I worked 12 years ago with the family on Friday. It's in a small town, <5000 people. There's also a McD's there, but the ol' DQ does fairly well. So, I got to thinking how I actually enjoyed working there.

The nature of the business I'm in now has an excellent retirement plan, particularly if you log 30 years. I started @ 20, so basically from 50 on, it's not to my advantage. The only way to quit and retain benefits is to be sure you don't sever ties. Basically, you can't go work for anyone else in a different industry. But, you CAN run your own business of any type.

Thought, meh, I should look into this...I've got 20 years before I'd need to decide, lol.

So, assuming I live to 50, what would I need? I'd choose a locale in a smaller town, preferrably an established franchise.

Capital for property purchase, capital for franchise purchase, etc. How's all this work? Ideally, it'd be a hobby job for me. I'd be glad to work the store as I've seen many franchise owners do. I'd also refrain from hiring the standard fast-food fare. No beards and shaggy hair in the kitchen, etc. If that meant I'd have to pay an extra buck an hour, I'd like to do so.

EDIT: http://www.franchiseprospector.com/franchise/dairy-queen.php

Obviously, it depends on location, volume, etc. But what would an average store bring in for the proprietor / working owner?

 

[kranky]

Hard to say, since 20 years from now things could be very different. If gas is $8 a gallon then (for example), businesses that people can walk to could be more appealing than ones out on the fringes. There will be people who can easily afford $8 gas, but are those the ones who would be your typical customer?

What if water becomes scarce, and therefore expensive? Restaurant costs could be a lot more. A combination of expensive gas and water could have a lot more people eating in, working from home, and not traveling all around town as they do now.

Demographic trends could also affect you. It could turn out that people decide to move toward the cities and away from the country. Do you have a large employer in your town that might not be around in 20 years, forcing a lot of people to move away to find work? That would be a risk as well.

I'm not saying it's a bad idea, just that it would be very difficult to make a plan today with so many unknowns.

 

[Slew Foot]

In general being near a college/university is a good thing. Lots of people who cant cook within walking distance spending money that, for the most part, isn't theirs. Oh yeah!

 

[nonameo]

I seriously doubt the average joe will have the capital to start a business 20-30 years from now.

 

[jme5343]

I don't see the capital situation being much different than it is today. Obviously, the rate of inflation will apply, so while gas might be $8, our average salaries *should* also be increased accordingly. For example, I pull down 4-5 times wat I did 12 years ago. I would hope that trend could continue, lol.

You make some good points kranky, but I'm really just looking for some opinions on what it takes to operate a franchise now.

And not sure what the "average joe" has to so w/ it. Frankly, the average joe doesn't have the capital to start a franchise now. Most requirements I've seen list 400,000 in liquid assets as a requirement to owning a franchise. Hardly the average joe

 

[Dr. Detroit]

As with any small business, long hours, 7-day a week work-week, employee theft, difficult to ever vacation, paying self-employment taxes + healthcare is expensive, liability insurance. No 401K match.

I think a franchise is too difficult, I looked into putting in a few WingStop's and I found that my public accounting career was better than being a franchisee. It takes years to get a proven management in place. As I understand it, the moneys really starts to flow once you are experienced and have a management team that can help you open your 2nd, 3rd, and so on.

My current goal is to retire at 45, move to a central state like Tennessee and open a small town "Saloon". Mom & Pop bar/family restaurant and serve good BBQ and cold beer to the locals. Running for Mayor of this small crap hole of a town at age 50 intrigues me as well.

 

[Gunslinger08]

You need multiple locations to make a decent amount of money. Honestly, it would probably be much easier to pay your own benefits (pretty much just insurance, I'd assume) and get a job somewhere else.

 

[jme5343]

Originally posted by: Fmr12B
My current goal is to retire at 45, move to a central state like Tennessee and open a small town "Saloon". Mom & Pop bar/family restaurant and serve good BBQ and cold beer to the locals. Running for Mayor of this small crap hole of a town at age 50 intrigues me as well.

Let us know when you get it set up. I'll make the trip to TN for the opening

And I'll probably blackmail you for a free brisket sandwich and pitcher of beer based on the last sentence, lol.

Originally posted by joshsquallYou need multiple locations to make a decent amount of money. Honestly, it would probably be much easier to pay your own benefits (pretty much just insurance, I'd assume) and get a job somewhere else.

I can't work for anyone else, but you are likely correct. I'll look into some other things as well.