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Thinking of buying a franchise for extra income...
March 16, 2017, 09:06 AM
Southflorida-lawThinking of buying a franchise for extra income...
quote:
Originally posted by P250UA5:
quote:
Originally posted by PASig:
The only one I could think that would work is a Chick Fil A.
They can't be cheap to get one though.
https://www.chick-fil-a.com/Careers/Franchise Not 100% sure if there's more to it, but it's $10k, for the franchise fee.
Probably, actually one of the cheapest.
There is a Chick-fil-a right near me so I looked up the property, the owners paid 2.24 million for the property, then built the store. I would guess that the owners of the franchise may not own the property but have a long term lease. But figure just to open the doors, that one has over 3 million invested.
March 16, 2017, 09:09 AM
cmr076quote:
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Franchises are not inexpensive to acquire and they typically requires suitable cash reserve in addition to the franchise purchased. Go carefully with due diligence.
Good luck,
RMD
a buddy and I have been talking about buying/starting a "Duck Donuts" franchise. I dont know anything about donuts, but from the research I have done, it looks like it could be profitable.
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March 16, 2017, 09:13 AM
jhe888A franchise restaurant (or anything) is not extra income. It is a full time job. More than a full time job. Probably more like 60 to 70 hours a week.
It can be a good living, but it won't be passive income.
The fish is mute, expressionless. The fish doesn't think because the fish knows everything. March 16, 2017, 09:19 AM
NavyGuyOP said "for extra income" Does this mean you'd keep your day job and want something that will run itself with little involvement? There's not many of those around. Maybe self storage or something along those lines.
Men fight for liberty and win it with hard knocks. Their children, brought up easy, let it slip away again, poor fools. And their grandchildren are once more slaves.
-D.H. Lawrence March 16, 2017, 10:05 AM
V-TailI have a partner in ownership of the V-Tail. If he were a member of this forum, his forum name might be "Donut Man," which is what we call him anyway.
He has many Dunkin' Donut franchises, he uses the airplane to make three or four trips a month, visiting them, meetings with local managers, etc.
Cost? Many millions. I don't know exactly how many millions, could not divulge it if I did know, but I do know that it is enough to make a serious dent in anybody's beer-and-ammunition budget.
Note to Original Poster: I sent you email. If you don't find it, please contact me through the email address in my profile.
הרחפת שלי מלאה בצלופחים March 16, 2017, 12:14 PM
erj_pilotquote:
Originally posted by NavyGuy:
OP said "for extra income" Does this mean you'd keep your day job and want something that will run itself with little involvement? There's not many of those around. Maybe self storage or something along those lines.
I'm going to agree with NavyGuy. If you do ANYTHING in the food service industry, be prepared to work looooooong hours and 6-7 days a week. I don't think there's such a thing as merely "part time for extra cash" in food service.
"If you’re a leader, you lead the way. Not just on the easy ones; you take the tough ones too…” – MAJ Richard D. Winters (1918-2011), E Company, 2nd Battalion, 506th Parachute Infantry Regiment, 101st Airborne
"Woe to those who call evil good, and good evil... Therefore, as tongues of fire lick up straw and as dry grass sinks down in the flames, so their roots will decay and their flowers blow away like dust; for they have rejected the law of the Lord Almighty and spurned the word of the Holy One of Israel." - Isaiah 5:20,24 March 16, 2017, 12:39 PM
Ronin1069I have been a corporate franchise consultant in both restaurant and retail for the past 20 years.
People often ask me why I don't buy my own franchise, I tell them that I have been a corporate franchise consultant in both restaurant and retail for the past 20 years.
Later tonight I will read thru this thread and see if you have any specific questions, otherwise feel free to send a note to my e-mail. (in my profile)
In my 20 year experience, people who buy a franchise for extra income, don't make extra income. In reality you are doing nothing more than buying yourself a job.
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March 16, 2017, 02:21 PM
Sig209Does your family own any property?
I have heard - if acquisition of land is not prohibitively expensive - that operating a 'Self Storage' facility is a pretty good business.
If the demographics match up...
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Proverbs 27:17 - As iron sharpens iron, so one man sharpens another.
March 16, 2017, 02:23 PM
Sig209quote:
Originally posted by Southflorida-law:
quote:
Originally posted by P250UA5:
quote:
Originally posted by PASig:
The only one I could think that would work is a Chick Fil A.
They can't be cheap to get one though.
https://www.chick-fil-a.com/Careers/Franchise Not 100% sure if there's more to it, but it's $10k, for the franchise fee.
Probably, actually one of the cheapest.
There is a Chick-fil-a right near me so I looked up the property, the owners paid 2.24 million for the property, then built the store. I would guess that the owners of the franchise may not own the property but have a long term lease. But figure just to open the doors, that one has over 3 million invested.
I have no doubt they do over $100k in sales / month though.
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Proverbs 27:17 - As iron sharpens iron, so one man sharpens another.
March 16, 2017, 02:32 PM
jhe888Self storage units have the reputation of being profitable, with sufficient occupancy, but there still has to be someone there a significant part of the time. Someone trustworthy.
You don't get a return over the return earned on a money market fund without putting some work (a lot of work) into it. If you could, everyone would be doing it.
The fish is mute, expressionless. The fish doesn't think because the fish knows everything. March 16, 2017, 05:45 PM
arfmelThere's always money in the banana stand.
March 16, 2017, 06:08 PM
41I wouldn't want the hassle of running a franchise. Two many things can go wrong and then there is the time to sell out.
Find a good stock like natural gas pipelines and collect the dividend and appreciation.
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41
March 16, 2017, 10:00 PM
46and2quote:
Originally posted by arfmel:
There's always money in the banana stand.
March 16, 2017, 10:19 PM
jimmy123xquote:
Originally posted by jhe888:
Self storage units have the reputation of being profitable, with sufficient occupancy, but there still has to be someone there a significant part of the time. Someone trustworthy.
You don't get a return over the return earned on a money market fund without putting some work (a lot of work) into it. If you could, everyone would be doing it.
Not entirely true in today's day and age. One of my former customers is one of the 10 largest mini storage owners in the country. I have another customer that owns about 50 units.
The one with the 50 units, each unit renter has their own gate card, he makes everyone pay by credit card, if credit card doesn't go through, gate card stop worky and no access to get to their unit. He knows which units are rented or not.....sometimes will do an audit of empty ones.....
The multi floor mini storage where each mini storage is a container or POD, this is where the money is at.....same thing, no payment and access code does not work to access it. BUT, the elevator thing that brings the pod down and up can record weight of the pod.....a third party person just checks logs versus spreadsheets, etc. BUT, most of the payment now is electronic.....direct debit, credit cards...automatically debiting it at the 1st of every month.
The modern mini storage is where there is a ton of money.