what do you guys think of franchises?

what do you guys think of franchises?

i am interested in some of them but will i get a good ROI on that huge upfront investment

 

i think > not so much.

IMHO.

P.S. that's way too broad of a question. is there a specific franchise you like?
where do you live? what's your lifestyle like? how much do you have to invest? what's your age? what industry interests you? do you NEED to make any money during the early years of owning a franchise? do you mind being "bossed around" by a franchise rep from time to time? are you highly motivated or does a "systematic" way of doing things work for you?

i don't want the answers, but you might.

BEST OF LUCK.

by "motivated" i mean entrepreneurial by nature.

 

thanks domainloot ill think about these things

 

i spent 6 years (on the inside - working for the franchisor (er) in the US).

so, that may make me more knowledgeable or more biased, i'm not sure. LOL

best,

 

yeah the only plus to a franchise in my perspective is the brand name

i think of it as buying the brand name and only that

so what do u think

thanks!

 

i know what you're thinking, and in theory YES, brand is extremely important.

however, you gotta sell a lot of PIZZA, HAMBURGERS and/or COFFEE & DONUTS to payback $500,000 to $1.5 million or more that it's going to cost.

build your own BRAND, in your local market. find a great little niche, and FILL IT... 24 hours a day, 7 days a week.

lot cheaper, and much more satisfying. AGAIN > IMHO.

 

If there is a gap in the market for the particular service than a franchise is great. Because it is a proven business model and their is a gap in the market. So the risk is dramatically reduced.

 

A franchise can be either good or bad depending on the situation and your knowledge. The good thing is that they have the expertise and contacts, so let's say if you want to buy stock, the franchise could have deals with different suppliers for better pricing etc. So you could gain on that. They also offer advice and help should you need it.

The negative side is the huge fees you need to pay upfront. You could possibly start the same kind of business for much less on your own. Depending on the franchise you will also need to pay a monthly or yearly fee which can cut severely into your cash flow. Especially in the first two to three years it might be a problem.

So there's no definitive answer to the question. It will depend greatly on what the specific franchise has to offer and how much their fees are.

 

true. i could do a lot with $1.5m.

at least open a few stores for the cost of one

 

yeah true
some franchises make you buy stuff from them
NAPKINS
PLASTIC SILVERWARE
BAGS
FOOD
think fast food

theres always costco too right?

 

It depends on MANY MANY factors. In particular, you should look at how wide the product range of the franchisor is. Is it wide or specific enough for your target demographic? Do you have experience in the field you're thinking of franchising into? Do you have enough capital for both the initial costs and ongoing costs?

There's just too many questions. Maybe if you give us more details, we could help you better.

 

If you are just starting business and dont want to loose money you should stick with franchises they are built solid and have their own marketing strategies. Bad thing is you have to pay royality and have to obey them. You are not your own boss.

 

one example
convinience store
its simple operation for the most part
theres costco and lots of wholesalers to buy from

my question is:
do people actually care whether or not its a 7-11???

b/c i probably wouldn't

 

I think they would. Branding connotes UNIFORM STANDARDS.

 

are "uniform standards" really worth that much more??