Is buying a franchise worth it? I understand this varies a lot

No. There are better opportunities elsewhere to put your money.

>>1627023
Why not?

If they aren't worth it, why do people do it in the first place?

>>1627023
like what?

>>1627156

the revenues aren't worth it unless you own more than one, and managing the day to days is a pain in the ass.

fast food workers turnaround is crazy, many just stop showing up. and the dumb, stupid people you have to train, over and over...

it takes alot of patience and the payoff isn't as great as you might imagine

>>1626866
depends on the biz.

The company I own started off as a franchise. The previous owner worked under the franchise arrangement for 5 years and then dropped it.

dropping the name brand had no effect on his sales, but it did reduce his costs by the 15%+ fee he was paying to the franchise.

in practice it might have provided him with useful education and advertising at the start, but he made a lot more striking out on his own.

>>1626866
I'd come and eat at your dirtybird anon

>>1626866

Generally bad, however there are good franchise out there.

The main benefit of a franchise is that it provides you the logistics, infrastructure and advertisement to run your business which is extremely useful for first time business owners who are trying to get into a field that they have no fucking clue about.

However if you actually do have experience in your field of pursuit and know how the field operates you're better off without one.

Of course franchises are great!
Just ask all the people who bought a Quiznos.
>they give them away for nothing on biz/buy/sell

>>1626866
its turnkey... that good. The bad.. you got some corporate asshole somewhere on a golf course sipping martinis thinking about how else he can shovel a pile of shit your way for you to swallow in the form of ridiculous product promotion, giveaway, a new jingle for you to crow to your customers, a uniform... etc. So you are not really a BOSS, your just a cuck.
Also some franchises are scams, others have ridiculous requirements to meet.. that could bankrupt you before you even begin.

here in Germany a Gas station owner (renter) has around 20.000€ debt.

>They pay rent to Shell Aral etc.
>they earn around 0,01€ per Liter gasoline they sell
>They must buy the food and beverage from shell etc and are not allowed to buy from a wholesale market so they have a very small >margin

additional

>silent contract changes leading to dismissal
>contract fees for minor mistakes

there were some suicides already

I knew a guy that owned McD in my country(Croatia) and he did pretty well. He sold it later but they still do pretty good.

I worked part time for Levis franchise but it failed really, really fast. Jeans were not that great but they were pretty expensive.

Now I work for a company with gas stations. Unless you can drive your business into it (lets say you own trucks, cars, planes) you will probably fail bcs all the good locations are already taken.

>>1626866
Worth it? As in do the additional revenues associated with owning a franchise justify the additional costs of owning a franchise?

No, they do not.

Franchise fees are very expensive for what you get.

>>1626866

Depends.

If its a gauranteed winner like ChickFilA, then yeah. If it's a hit or miss franchise, then its definitely not worth it.

The thing about a franchise is that want a massive upfront payment and they take a percentage of the gross for as long as you own it. It's often like 9%. After you give them so much $ and they take that cut it doesn't leave you much money left.

So, it's only good with killer franchises.

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Some are shit some are excellent businesses.

THE KEY (which I learned after meeting one of the largest franchise owners in the US) although it really is just common sense, is that you want to lever up and buy more than a few franchises. Once you get into the 10-20-50 range you have excellent economies of scale (pay less on average for growth/earnings than a one or two store operation).

It can be very defensible if you can get to that scale, but already people are starting to leave the industry if they aren't able to scale up like that because there is a lot of uncertainty and capital investment that needs to be made to make your restaurant compatible with the Chipotle's (Ecolis) of the world. This eats away at the ROI quickly.