What franchise do you think is the best?

[vangogh]

I don't have any experience with franchises myself other than working in a Great Frame Up sometime in the past.

Anyone here own a franchise? Which franchises do you think are the best?

[rocketman]

^I have looked at franchises several times, but after adding up all the startup costs, fees,, etc.. i could not see how it would pencil out unless you had cash upfront.

[vangogh]

I think you do need the cash up front. If you have it it's probably comforting knowing you're starting business with a built in brand to help draw customers right away. It's not like you'd have to do much marketing if you bought a McDonalds franchise.

I remember when I worked at the frame shop my boss would often complain about some of the things he had to buy into for marketing as part of the franchise deal. He knew a lot of it wouldn't do much for his store specifically, but he still had to spend thousands each year. I guess he still benefited in other ways for what he had to spend though.

[Coach Morse]

I own 5 Subway stores. My wife and I opened our first location in 1993. It was 15k for the franchise, 60k to build out the store including decor, signage and equipment, plus another 20k for initial inventory, advertising, and misc. launch expenses.

The entire process, from gathering information to getting the doors open, took 8 months. We lived off of 10k we had in savings and we borrowed 100% of what it took to open the business.

Start up cash is nice, but it's not necessary. What is necessary for success in any business venture, franchise or not, is guts.

If you've got guts you can do anything! :cool:

[cbscreative]

Just curious, Coach, what are those costs now? Obviously that was a lot even back then, but with the success Subway has had, I was wondering what those numbers are up to. I remember even back in the late 80's a Mickey D's was up over half million, and I think that was just the franchising fee.

[vangogh]

Really good point about it being about guts George. It's always nice to have the capital to start up and not worry about where the money will come from, but you don't necessarily need it. When there's a will there's a way.

[Coach Morse]

Just curious, Coach, what are those costs now? Obviously that was a lot even back then, but with the success Subway has had, I was wondering what those numbers are up to. I remember even back in the late 80's a Mickey D's was up over half million, and I think that was just the franchising fee.

Today I think someone would have to plan on a cost between 200k - 250k, depending on the size, location and condition of the site prior to build out. Existing locations these days are selling for anywhere from 150k to 400k depending on the sales.