Is owning a franchise a good idea?
- Anonymous1 month ago
jay gave a great answer
the one thing he did not cover, where will you get the cash to buying start up ?
If I had that kind of cash I would not buys a franchise
buy a life time income annuity and keep working your current job
franchise is a big area... from Mc Donalds to joeys janitorial service
the low end no name things are not a recognizable store and the franchise will do you no good but still cost as Jay explained.
the big names are big money and I see no reason to buy one up in the $1,000,000.00 stat up cost area
one big lie franchise tell you, they buy in bulk and get better pricing... this is not a fact that pans out....
if it works out as they try and tell you,, say a ford truck 150 normal cost fleet unit $28,000.00 .. the way they explain is they can get you that truck for $3500.00 ... we know that is not true and it is the same with hamburger or soda cups of floor buffers- what ever ... this is a myth
they buy a box of cups that are over priced say $30.00 when you could buy the others for $20.00 ... they get you 15% off the $30.00 cups you get them for $26.50.... still over priced the manufacture gives a kick back to the franchise off the $6.50 over charge
- JayLv 61 month ago
When you own a Franchise...you do not really 'OWN' it. You buy the right to operate a business under the name of the 'Parent Company'. The PARENT company will tell you where you are allowed to open the franchise, what your employees are allowed to wear, what type of food you can serve, (or if it is a different service industry...the type of service and how it is performed...the clothing and how it is displayed...) and where you get it from (THEIR food, clothes, cleaning chemicals, tools...) that you MUST buy from THEM) What hours you can be open, what music you can play and how to decorate the place.
Additionally, since YOU have to PAY THEM for the privilege of owning one of their franchises...and that could be from $1,000.00 up to $150,000.00 a month....plus you have to buy everything from THEM so you cannot even look for better prices...
Basically, even as the owner, you will wind up working extra hours YOURSELF - just to save money on employment expenses so you can pay your monthly franchise fee.
The moment you stop paying that fee...they can take the franchise away from you ...and not pay you back the money you invested in it. AND...what is worse...if you decide to sell something in your franchise that is not part of their product line...(let us say you have a BURGER franchise and you decide that you want to also serve Cupcakes...the franchiser will tell you to stop ... and take away your franchise if you do not...even if the cupcakes are making more money then the burgers.
So, what I am trying to point out is that you do not really 'own the franchise' the franchise 'owns' YOU. Eventually you make money...but in reality you are working for someone else. None of the decisions are your own...you are managing it for someone else.
Now if you are saying that you want to start a franchise...then that can be a good idea. You WILL be the boss in that case...so if you wake up on a Tuesday morning and decide that all employees must now wear purple and neon green jumpsuits...ALL employees in ALL franchise will HAVE to start wearing that even if the individual franchise owners HATE it.
I suggest that you either ask your lawyer to make you a business plan for a franchise so you can see what it will take ..or just go tot he Fiverr site and get a cheap basic one ...and then if you still think it is a good idea... then you will already know the nest steps to take.
- Anonymous1 month ago
Depends. It can be very profitable or a total bust.