Saving up money for a franchise out of college..

[Syringer]

How realistic of an idea is it to come out of college, get maybe a decent $40k job..live at home for free, work for a few years, invest, and save up enough money to buy a franchise of some sort after taking out a loan and live off of that?

My goals would not be to be rich by any means, but to live comfortably and avoid 40 hour weeks and the politics of the office/business world.

My sister has been working for about 3 years now making about $45k a year, and has about $20k (I think) saved up without much investing, and having purchased a $25k Explorer while not being so frugal in her other purchases as well and will be heading to law school in the fall.

I figure without a major car purchase, investments, and my usual frugality, I can come up with enough money to eventually purchase an established franchise and live off of it.

 

[Actaeon]

Something I thought about doing. I would imagine making alot of money pretty easily.

Never thought about bringing it up in here, good idea. Looking foward to the responses.

 

[BornStar]

Most franchises require that the owner works 40+ hours a week. It's also extremely difficult to get any franchise if you don't already own one and even more difficult if you don't have some sort of an advanced degree. What franchises are you looking at?

 

[Yossarian]

franchises are expensive, as in hundreds of thousands of dollars.

 

[bolido2000]

I read that Subway is one of the best franchises to own for entrepenuers. You could also try Lollicup, Tea zone, Lees sandwiches, etc. I would guess this franchises are cheaper and easier to get since they are not so "corporate". Of course you would need to open it in an area with many asians.

 

[CanOWorms]

i'm thinking of opening up a wal-mart franchise

 

[DaWhim]

not all franchise can make money

read more here

 

[Raincity]

Considering that a real franchise usually wants 1 mil secured and 3 mil assest before they even consider talking to you. Usually takes 6 units before you make any decent money. Low capital startup franchises screw you on fees and supply costs. Once you go under usually takes a year, The franchise takes over and sells to the next sucker.



Rain

 

[Lager]

Your sister come out of a nice college I reckon?

 

[bolido2000]

Originally posted by: Raincity
Considering that a real franchise usually wants 1 mil secured and 3 mil assest before they even consider talking to you. Usually takes 6 units before you make any decent money. Low capital startup franchises screw you on fees and supply costs. Once you go under usually takes a year, The franchise takes over and sells to the next sucker.



Rain

I think a Subway franchise is only 20K and the returns are good.

 

[Raincity]

Originally posted by: bolido2000

Originally posted by: Raincity
Considering that a real franchise usually wants 1 mil secured and 3 mil assest before they even consider talking to you. Usually takes 6 units before you make any decent money. Low capital startup franchises screw you on fees and supply costs. Once you go under usually takes a year, The franchise takes over and sells to the next sucker.



Rain

I think a Subway franchise is only 20K and the returns are good.

Look at Subways excessive owner turnover. Its a scam.

 

[AvesPKS]

Originally posted by: bolido2000

Originally posted by: Raincity
Considering that a real franchise usually wants 1 mil secured and 3 mil assest before they even consider talking to you. Usually takes 6 units before you make any decent money. Low capital startup franchises screw you on fees and supply costs. Once you go under usually takes a year, The franchise takes over and sells to the next sucker.



Rain

I think a Subway franchise is only 20K and the returns are good.

The only problem with that is, if I remember correctly, the Subway franchisers are like salesmen. They get a comission for how many franchises they sell in their area, so there is no incentive to them to not set up other franchises by yours.

 

[Mill]

Originally posted by: Raincity
Considering that a real franchise usually wants 1 mil secured and 3 mil assest before they even consider talking to you. Usually takes 6 units before you make any decent money. Low capital startup franchises screw you on fees and supply costs. Once you go under usually takes a year, The franchise takes over and sells to the next sucker.



Rain

Wrong, wrong, and wrong. I've actually been looking into this for awhile. The amount of capital you need is dependent upon the franchise and the market city you are in.

 

[Raincity]

Originally posted by: Mill

Originally posted by: Raincity
Considering that a real franchise usually wants 1 mil secured and 3 mil assest before they even consider talking to you. Usually takes 6 units before you make any decent money. Low capital startup franchises screw you on fees and supply costs. Once you go under usually takes a year, The franchise takes over and sells to the next sucker.



Rain

Wrong, wrong, and wrong. I've actually been looking into this for awhile. The amount of capital you need is dependent upon the franchise and the market city you are in.

I suggest you keep looking into it. How many franchises are out there that don?t need 1 mil startup in any market and return to profitability within three years.

 

[Mill]

Originally posted by: Raincity

Originally posted by: Mill

Originally posted by: Raincity
Considering that a real franchise usually wants 1 mil secured and 3 mil assest before they even consider talking to you. Usually takes 6 units before you make any decent money. Low capital startup franchises screw you on fees and supply costs. Once you go under usually takes a year, The franchise takes over and sells to the next sucker.



Rain

Wrong, wrong, and wrong. I've actually been looking into this for awhile. The amount of capital you need is dependent upon the franchise and the market city you are in.

I suggest you keep looking into it. How many franchises are out there that don?t need 1 mil startup in any market and return to profitability within three years.

Uhh... plenty? How old are you, 16? Go here.

 

[Raincity]

Originally posted by: Mill

Originally posted by: Raincity

Originally posted by: Mill

Originally posted by: Raincity
Considering that a real franchise usually wants 1 mil secured and 3 mil assest before they even consider talking to you. Usually takes 6 units before you make any decent money. Low capital startup franchises screw you on fees and supply costs. Once you go under usually takes a year, The franchise takes over and sells to the next sucker.



Rain

Wrong, wrong, and wrong. I've actually been looking into this for awhile. The amount of capital you need is dependent upon the franchise and the market city you are in.

I suggest you keep looking into it. How many franchises are out there that don?t need 1 mil startup in any market and return to profitability within three years.

Uhh... plenty? How old are you, 16? Go here.

All I see is franchise startup costs and rankings. I dont see any past sales charts for any market. And no I am not 16. I am in my late thirties and actually have some experiance in this as a owner.

 

[Mill]

Originally posted by: Raincity

Originally posted by: Mill

Originally posted by: Raincity

Originally posted by: Mill

Originally posted by: Raincity
Considering that a real franchise usually wants 1 mil secured and 3 mil assest before they even consider talking to you. Usually takes 6 units before you make any decent money. Low capital startup franchises screw you on fees and supply costs. Once you go under usually takes a year, The franchise takes over and sells to the next sucker.



Rain

Wrong, wrong, and wrong. I've actually been looking into this for awhile. The amount of capital you need is dependent upon the franchise and the market city you are in.

I suggest you keep looking into it. How many franchises are out there that don?t need 1 mil startup in any market and return to profitability within three years.

Uhh... plenty? How old are you, 16? Go here.

All I see is franchise startup costs and rankings. I dont see any past sales charts for any market. And no I am not 16. I am in my late thirties and actually have some experiance in this as a owner.

Uhh??? Are we talking startup costs or not? You've backtracked and then starting smoking crack. Look at the startup costs for almost all of the franchies(and I linked just the T's). 98% of them are under 1 million. My point stands. I don't see what sales has to do with it, because I never said a damn thing about sales.

 

[Epoman]

Originally posted by: Mill

Originally posted by: Raincity

Originally posted by: Mill

Originally posted by: Raincity
Considering that a real franchise usually wants 1 mil secured and 3 mil assest before they even consider talking to you. Usually takes 6 units before you make any decent money. Low capital startup franchises screw you on fees and supply costs. Once you go under usually takes a year, The franchise takes over and sells to the next sucker.



Rain

Wrong, wrong, and wrong. I've actually been looking into this for awhile. The amount of capital you need is dependent upon the franchise and the market city you are in.

I suggest you keep looking into it. How many franchises are out there that don?t need 1 mil startup in any market and return to profitability within three years.

Uhh... plenty? How old are you, 16? Go here.

pwned!

 

[PlatinumGold]

Originally posted by: Epoman

Originally posted by: Mill

Originally posted by: Raincity

Originally posted by: Mill

Originally posted by: Raincity
Considering that a real franchise usually wants 1 mil secured and 3 mil assest before they even consider talking to you. Usually takes 6 units before you make any decent money. Low capital startup franchises screw you on fees and supply costs. Once you go under usually takes a year, The franchise takes over and sells to the next sucker.



Rain

Wrong, wrong, and wrong. I've actually been looking into this for awhile. The amount of capital you need is dependent upon the franchise and the market city you are in.

I suggest you keep looking into it. How many franchises are out there that don?t need 1 mil startup in any market and return to profitability within three years.

Uhh... plenty? How old are you, 16? Go here.

pwned!

i'm looking thru the lists and theres no way those numbers are for total startup costs. those numbers look to be just what you are paying the franchiser. for example, taco time for 43k to 335k?? let's say you don't get you own building (which most taco times i've seen are in) but get a spot in the mall, just the security deposit etc the mall will require will be a lot of money. Plus, you will have to pay for renovations and such. so, even the low end, in a mall and such, will cost over 200k in my opinion, 43k is just stupid.

 

[PlatinumGold]

as to the original question, if you really want to go in business for yourself, i think the best value in small businesses right now, are those little carts/tables/booths in malls. you can get one for about $1000.00 / month in a smaller mall and you can gross $5000-$7000 / month with a huge boost during christmas season.

i say, stay away from franchises, if you are willing to put in the hours to make a franchise successful, you can put the same amount of hours in a non franchise business and make it successful as well. without all the franchise fees.

 

[StageLeft]

if buying a franchise and living off its spoils was as easy as coming up with 50-100k and doing it then we'd all be doing it. As with any business you own it will take a lot of effort and have questionable rewards.

And don't forget - if these things were guaranteed and easy, the franchise itself would simply have on staff their own guys to start them up and run them. But, they know that people will absorb the risks for them, so they don't need to.

 

[Syringer]

Originally posted by: PlatinumGold
as to the original question, if you really want to go in business for yourself, i think the best value in small businesses right now, are those little carts/tables/booths in malls. you can get one for about $1000.00 / month in a smaller mall and you can gross $5000-$7000 / month with a huge boost during christmas season.

i say, stay away from franchises, if you are willing to put in the hours to make a franchise successful, you can put the same amount of hours in a non franchise business and make it successful as well. without all the franchise fees.

Hmm, is there a specific name for these things? Or link?

 

[GasX]

I checked about 5 years ago. A Taco Bell franchise runs about $500K.

 

[Mill]

Originally posted by: Syringer

Originally posted by: PlatinumGold
as to the original question, if you really want to go in business for yourself, i think the best value in small businesses right now, are those little carts/tables/booths in malls. you can get one for about $1000.00 / month in a smaller mall and you can gross $5000-$7000 / month with a huge boost during christmas season.

i say, stay away from franchises, if you are willing to put in the hours to make a franchise successful, you can put the same amount of hours in a non franchise business and make it successful as well. without all the franchise fees.

Hmm, is there a specific name for these things? Or link?

Kiosk.

 

[Mill]

Originally posted by: PlatinumGold

Originally posted by: Epoman

Originally posted by: Mill

Originally posted by: Raincity

Originally posted by: Mill

Originally posted by: Raincity
Considering that a real franchise usually wants 1 mil secured and 3 mil assest before they even consider talking to you. Usually takes 6 units before you make any decent money. Low capital startup franchises screw you on fees and supply costs. Once you go under usually takes a year, The franchise takes over and sells to the next sucker.



Rain

Wrong, wrong, and wrong. I've actually been looking into this for awhile. The amount of capital you need is dependent upon the franchise and the market city you are in.

I suggest you keep looking into it. How many franchises are out there that don?t need 1 mil startup in any market and return to profitability within three years.

Uhh... plenty? How old are you, 16? Go here.

pwned!

i'm looking thru the lists and theres no way those numbers are for total startup costs. those numbers look to be just what you are paying the franchiser. for example, taco time for 43k to 335k?? let's say you don't get you own building (which most taco times i've seen are in) but get a spot in the mall, just the security deposit etc the mall will require will be a lot of money. Plus, you will have to pay for renovations and such. so, even the low end, in a mall and such, will cost over 200k in my opinion, 43k is just stupid.

Size and location are going to be huge factors. A Taco Bell Express might cost a lot less than a large one on a main artery. I believe the costs I listed to be quite accurate, because I've recently talked to 3-4 subway owners and the figures they gave me were in-line with what the site said. Of course a franchise will be more expensive the higher your lease payment, utilities, and how much you have in payroll.