Franchises
- Thread starter Yoga Face
- Start date
I have in front of me, a couple of confidential franchise packages from well-known Canadian franchisors. These are opportunities for existing franchisees and not the general agreements for those off the street. The advantage to owning an existing franchise is that additional locations can be purchased for relatively low initial fees, in this case, $30,000 for a fast food outlet and $60,000 for a full-service sit-down restaurant. It is remarkable the amount of work that was put into the locations. There are reams of information on local demographics including the ages, ethnic origin, household income, etc. of the market residents. There are analyses of traffic patterns, nearby competitors, road conditions, etc. There are also descriptions of the neighbourhood, nearby stores, offices and shopping areas with respective prospective customer numbers.
Unfortunately, in addition to the initial fees, the franchisee must have unfettered cash of $1.2 million for the two combined projects with total cost estimates of $2 to $2.4 million.
Fortunately, these franchises are real money-makers for the prospective franchisee who already owns two of their existing fast food franchises. He is champing at the bit to get going, as he has the cash and eager bank connections. With his exemplary track record, he doesn't really need luck. He is like the individual described by "onceaday" above.
Unfortunately, in addition to the initial fees, the franchisee must have unfettered cash of $1.2 million for the two combined projects with total cost estimates of $2 to $2.4 million.
Fortunately, these franchises are real money-makers for the prospective franchisee who already owns two of their existing fast food franchises. He is champing at the bit to get going, as he has the cash and eager bank connections. With his exemplary track record, he doesn't really need luck. He is like the individual described by "onceaday" above.
Bringing back this thread from the dead...I just purchased 50% of a company involved in "green hard surfacing" for myriad applications. A minimum franchise fee would be north of 50K + 3-4% gross. That's just the way it works Yoga. You can always invest serious time and money and start your own franchise perhaps? Get ready to peel off 100K and then some just to get the ball rolling.
I'm late to reply but I just sold my franchise I've had for over 20 years. It provided me with a decent income but it was the fact I was working for myself that was the biggest appeal. I controlled my own destiny to some extent. After a few years I did resent royalty as I no longer needed franchisor expertise but I eventually got out of my Agreement. I have been offered franchises in fast food, 3 in the pet industry and even one of the fastest growing franchises in North America - but never signed as I considered Franchise Agreement a little to one-sided for me. My advice is to hire lawyer specializing in Franchise Law if you are anewbie.
My next startup won't be a franchise though in all likelihood, although an opportunity in something unique would still be appealing.
My next startup won't be a franchise though in all likelihood, although an opportunity in something unique would still be appealing.
