Good points. On the one hand, you get instant name recognition and access to proven products and processes, but on the other you lose a good portion of individual control, and often have significant requirements that cost a lot of money to fulfill.
I agree with some of this, but I don't think he's talking about a passion project/main career, sounds almost like an investment opportunity. It's not like each McDonalds franchisee is passionate about Big Macs. If they were passionate about burgers, they'd open their own joint where they had more control.
Personally, I'd stay out of the food franchise biz...they are 1) expensive, 2) require a high liquid cash amount or net worth, and 3) competition is fierce/market is saturated, 4) experience is important, 5) margins are low. I'd go with a more low key business like carpet cleaning or similar. Much higher margins, less competition, and less investments required. You could even bypass a franchise and start your own without it.
I am doing my own research and will make my own call but I know the knowledge level of all ISU fans on CF outpaces all experts in every field so I wanted to tap that. "I wanted to tap that," hah! But I appreciate the concern.
It was interesting, to me at least, that a lot of the highly rated opportunities now are education related and a lot of the poor ones were Realtor agencies. Take this for what it's worth, as they publish these about every 6 months. http://www.zerohedge.com/news/2017-05-13/california-business-banker-speaks-out-its-classic-late-cycle-red-flag "During the last 3-4 years, I’ve seen more people who seek to finance new restaurants than any time in the past 20 years. This industry seems frothy. With rising rental costs for space and higher minimum wages for staff, I’m seeing pressure on the cost structure of existing operators squeeze them, while people are rushing to build out a new restaurant." The restaurant business has long been known for being one heck of a tough market
I know someone that has a Red Rhino epoxy flooring franchise. I think they are fairly new. The franchise fee is $50,000 and I believe there is also an initial investment of about $70k-100k He seems to be busy most of the time.
I was in Chicago about 10 years ago where there was a regional franchisee meeting for Budget Blinds being hosted in the same hotel. Everyone I met in the lobby, hall, bar had about the same conversation with me. "You with Budget Blinds?" "No" "You should be!" Later that night, I went up to the bar and sat next to a couple of franchisees. I talked to them for a couple hours and the following week called the Budget Blinds headquarters. Unfortunately, someone already had the same territory I wanted. But it really sounded like an interesting investment with happy franchisees.
Speaking of franchisees, what ever happened to the guy here that was thinking about opening a Papa Murphy's in Eastern Iowa?
A bigger question - what happened to Papa Murphy's?? They are now as expensive as a cooked, made to order pizza.
I think Papa Murphy's showed up in Clinton like 25 years ago, so that guy might have been late to the party...
