Can I get a redpill on franchises? Is it a good way to make buisnessman-tier

The franchise fee is high with the majority of opportunities. 8% doesnt sound like a ton of money until you realize in a good quarter, you make 15% after taxes. That said, a 5 million dollar a year before tax profit, Dunkin Donuts franchise (you have to buy a minimum of 3 last time I looked) and after fees, is still a pretty nice chunk of change for an individual.

You dont get ultra rich, but it certainly puts you above doctor/lawyer salary without a ton of personal time invested.

Its all about the up front costs (McDonalds which demands full investment, 7 million in the bank, and a 5 store commitment with a 4% fee, vs Papa Johns who gives you everything, requires 2 million in the bank, 1 store commitment, and a 14% fee) and continuing costs.

>>1827867
It's hit and miss though.

I've sat in a McDonalds for a few hours while my daughter plays and they might only take in about $100 in that time - just a bunch of people buying $1 menu items.

Ditto for Dunkin Donuts. The one near me in Scottsdale is mostly empty with no one in the drive-in. But weren't they in talks about bankruptcy anyway?

Chipotle were always lines out the door but only during the lunchtime rush.

Taco Bell - the most a customer will order is about $5 and the place is never busy.

When you look at McDonalds total sales and divide it by number of stores they really don't make much.

>>1827886
A packed AF Starbucks in a downtown area vs a Dunkin Donuts in bumblefuck doesnt exactly matter. You are talking about percents, rent, and labor.

Yes, you are making cents off each transaction. The number of transactions is what matters, and it is why very few of the big players allow single location franchises.

Franchises exist based on low minimum wages, high volume, and minimal fees. That said, franchises are not immune to bankruptcy. Last I looked Jiffy Lube had a 7% franchisee default rate (where the parent company revokes your contract) and I swear I read as a company Quiznos had filed for bankruptcy as an actual company itself.

Its not a safe bet, but it is safer than doing everything on your own... which is where the fees come in

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>>1827886
>scottsdale

Yah buddy just knock off a famous fastfood place that is cheap and isn't available in PHX and buy a building off Van Buren in in the low street/ave #'s. Or put the time and money in for a Chick-fil-a franchise.


Chipotle doesnt franchise anymore

>>1827980

Then market it, source your vendors, pay for HR and everything else that comes with a business, hope to god you dont get sued by the guy you are cloning... etc

There are reasons franchises exist, and also reasons why In-and-Out burger are a regional institution

>>1827992
Ever been to Pete's fish and chips? All there vendors are within 10 miles of downtown.

Sourcing vendors in Phoenix is easy. Hell, worst case just go to the costco business center at 35th and grand like all the other small restaurants.

>>1828020

Hurray... you just figured out how, at best, to make 5-7% profit a year, on a single location.

Thats called a restaurant, and has a failure rate of between 60-90% within 5 years

just make a Hitler Donut store

>>1828027
From what I've heard the real people making bank own a few fast food places. Like 3 Jimmy Johns, or 4 Dunkin Donuts. Just one yields very little profit. That's what I've heard. Maybe it's true, maybe not.

What I do know is Quiznos is toast, McDonald's is in dire straits thanks to their unhealthy image, and Subway is oversaturated and cutting back on their number of shops. There are more Subways in America than there are McDonald's.

>>1828039
>Quiznos is toast

I see what you did there.