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anyone into offline franchising?

Discussion in 'Making Money' started by blackhatcatz, Sep 7, 2009.

  1. blackhatcatz

    blackhatcatz Power Member

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    Does anyone here have experience in offline franchising for diversification?

    planning to get 1 to 2 foodstalls. idea is to get around 10 food stalls and make around $15-20k profit per month off of these once i get some systems set.


    all the best,

    F
     
  2. mochidel

    mochidel Newbie

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    First you have to make your system all set and running one or two stalls for few months.
    Then you do trial and error, and fix your system.

    Or take the shortcut, buy another franchise similar to you want to build, and copy their SOP, promotion, etc.

    After you have profited and think the system is good, you can scale scale scale, just like black hat (find what shit is stick and scale it to max). About the franchise fee bla bla, just find brochure or ads promoting franchise similar with your business and copy it to fit your needs.
     
  3. boozie

    boozie Power Member

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    I own a food franchise and I wish I never did. Can't give you the name because of a pending lawsuit. Me vs. them. Whoever is selling you the franchise will inflate their numbers making the product look better than it is, they will 'forget' costs from the UFOC which will also affect your bottom line, and if they had to run the place themselves they would probably have no idea of what the hell goes into a day in the business and have absolutely no idea of what to do. If you decide to go franchise make sure they live and breathe what they sell and they aren't only concerned with their % each month. But the best advice I can give you is to do your homework, don't let them do it for you. Figure out what it is you're going to sell, then talk to the vendors that actually sell to you. Get the cost then find the same product for less from somebody else. Work for one for a while so you get a real sense of what exactly goes on. You won't get this from any two-week 'mandatory' franchise training. If you have to do a build-out, get your ass over to the town hall and talk to the construction official or better yet, his secretary. They have a wealth of information that will save you tons of money before you sink a nail. I don't care if the franchise costs you 10 grand, do your homework. Find the best selling products in the area, count the foot traffic, know the hours of the surrounding businesses, and know your overhead. Find out if anyone has sued them and won. This is public information, find it out. Find out all your costs from whoever is going to sell you what you need and compare it to their projections. Ask you neighbors what their electirc bills are, gas bills, etc. Dig deep into who exactly it is you're buying a franchise from. What school they went to, if they are living off of Daddy's money, their accomplishments etc. Talk to the other franchisees. Do your homework. Do your homework. Do your homework. You don't want to end up like me, trust me. Thank God I had enough to open something else and could borrow money from friends. Nothing is turn-key. And they are trying to sell you something so you can do all the work and they can make money. They ARE going to lie to you to get you to sign the dotted line. Do your homework. There are some real good frachise forums too, check them out. Good luck. And oh yeah, do your homework.
     
  4. blackhatcatz

    blackhatcatz Power Member

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    great advice. i've heard. I'm just doing it as a diversification of my current business. but i am all for studying it. im sure all the hidden expenses etc will pile up.

    my friend owns a hospital and school and i plan to just put a food stall in it. once i talk to him or place it on the metro rail, if i can get it done with good connections.

    nevertheless, branding, hidden expenses, taxes should be kept in mind.

    No plans of building a full restaurant though. just food stalls in high traffic areas.