Franchises?

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Replied by FrankN on topic McDonald's

Joker wrote: No, he sold out in the 1990s while the profits were high. Since the recent changes in state minimum wage laws, I dare say that he would be really upset at the increase in wages. I don't know how current franchise owners are dealing with it. Seems to me you have to find a better way to save, possibly in moving to a lower taxed area which one McDonalds in Espanola did.


That is a very interesting point. I would also be very curious to see how current franchise owners are dealing with that.
2 years 2 months ago #1

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Replied by Joker on topic McDonald's

No, he sold out in the 1990s while the profits were high. Since the recent changes in state minimum wage laws, I dare say that he would be really upset at the increase in wages. I don't know how current franchise owners are dealing with it. Seems to me you have to find a better way to save, possibly in moving to a lower taxed area which one McDonalds in Espanola did.
2 years 2 months ago #2

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Replied by JGibbs on topic McDonald's

Joker, does your friend still own the McDonald's franchise today? You mentioned that he's made a lot of money, does he still feel negatively towards giving his employees raises? I ask because there's been a lot of hoopla in the news about the issue. I've looked into franchises just for fun and McDonald's does seem like the safest bet. Would you agree?
2 years 2 months ago #3

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Replied by Joker on topic McDonald's

I had a friend that owned a McDonald franchise. He said that he even had to count the swizzle sticks weekly. He also said there are some really stupid rules that a franchise owner must follow. Inventory controls, and you can't even offer anything that isn't explicitly offered and approved my McDonalds. They've made a lot of money, but you must weigh the controlling franchise with how much you want someone to tell you how to run your show.
2 years 2 months ago #4

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Replied by FrankN on topic Franchises

I agree. There are also some franchises that give you a lot of leeway in how you run your business.
2 years 11 months ago #5

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Replied by Raina on topic Franchises

Curry wrote: You have to take the good with the bad with a franchise. The good part is an established customer base. The bad news is that you are not the only boss and have to play by the rules set down by others. It can be a good thing, but it's not for everyone.


It would be good for someone starting out as an owner. The experience from other franchise owners would be invaluable even if someone else owns the name. Knowing that you have a proven customer base is also much easier than starting from scratch.
2 years 11 months ago #6

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Replied by Curry on topic Franchises

You have to take the good with the bad with a franchise. The good part is an established customer base. The bad news is that you are not the only boss and have to play by the rules set down by others. It can be a good thing, but it's not for everyone.
2 years 11 months ago #7

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Replied by Medi on topic It's not always easy to buy a franchise

FrugalFran wrote: That makes sense, Egghead. A major brand wouldn't want a lot of store/restaurant closings due to inexperienced owners. I have an extensive background in restaurant management, so I had considered a franchise at one point, but then I decided I didn't like the idea of having every step of ownership dictated to me.

I was thinking about getting involved in franchise business. I know there are basic rules to follow, but this makes me wonder how far they can interfere with our business. I thought this would be a good investment because we are not 'alone' running the business and have better future prospect.
3 years 3 hours ago #8

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Replied by FrankN on topic Franchise

I would do a lot of research before buying a tanning salon. That industry is definitely in decline and would have to be in a solid location with a regular customer base.
3 years 5 months ago #9

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Replied by FrugalFran on topic Franchise

patse wrote:

alpha wrote: Does anybody have any experience with buying into a franchise business? A friend of mine is looking at buying a tanning salon which is part of a franchise.


I don't but I would be really hesitant about buying any franchise. I do think that tanning salons are a lot different than restaurants though. The key is, is there a need for it? Are there others in the area?


I agree that tanning salons are a whole different animal. My concern would be that people don't use them as much as they used to. I mean, most people are aware that it's bad for them, right?
3 years 6 months ago #10

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Replied by patse on topic Franchise

alpha wrote: Does anybody have any experience with buying into a franchise business? A friend of mine is looking at buying a tanning salon which is part of a franchise.


I don't but I would be really hesitant about buying any franchise. I do think that tanning salons are a lot different than restaurants though. The key is, is there a need for it? Are there others in the area?
3 years 6 months ago #11

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Replied by Cents on topic Franchise rules

A nightmare, indeed, since people's likes and dislikes are bound to vary from region to region. I'm sure some allow more flexibility than others, but think about when you go into a Cracker Barrel or a TGI Friday's. I've been to them in the southwest, the southeast, the northeast, etc. and they're exactly the same right down to the decor. I'm sure many of their patrons appreciate that they know what to expect when they walk into a place like that and that may be part of the attraction, but I can understand the desire to have a little more control over something that is supposed to be your own business.
Last edit: 3 years 6 months ago by Cents.
3 years 6 months ago #12

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Replied by Egghead on topic Franchise rules

Fran, I totally see your point on being dictated to. I am not sure how much micro management is involved in a franchise - it probably differs between companies, but if they don't allow you to have some say on what works and what doesn't work in your particular location it could be a nightmare.
3 years 6 months ago #13

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Replied by Breakinger on topic It's not always easy to buy a franchise

My husband and I were thinking about getting into a franchise. There was this sub shop that was around the corner that was part of a franchise, but the owner had to close it. We looked into reopening it, but when doing some research we found that the business is no longer available in our area. The best thing to do is to contact the company you are interested in; they can give you all the details that you need.
Last edit: 3 years 6 months ago by Breakinger.
3 years 6 months ago #14

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Replied by FrugalFran on topic It's not always easy to buy a franchise

That makes sense, Egghead. A major brand wouldn't want a lot of store/restaurant closings due to inexperienced owners. I have an extensive background in restaurant management, so I had considered a franchise at one point, but then I decided I didn't like the idea of having every step of ownership dictated to me.
3 years 6 months ago #15

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