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Anyone own a Franchise

Discussion in 'Business & Tax Advice' started by theadultsplayground, Mar 3, 2009.

  1. theadultsplayground

    theadultsplayground BANNED BANNED

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    I am been running some offline line ventures and now I am considering buying a franchise but the amount out there is overwhelming. I am currently thinking of going with the Travel Agency route and have found a few companies with investment fees from $10,000+ but can't find a place that offers reviews of franchises.

    Anyone know any or have a good experience with one.
     
  2. premiumsource

    premiumsource Senior Member

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    Have you looked at this yet:

    http://www.entrepreneur.com/franchise500/

    Be careful, the primary reason for you to buy a franchise is the brand/name recognition. So if that Travel Agency franchise doesn't have a name recognition you would be better of starting your own small business. Name recognition is important because you will get immediate sales and quite often be profitable in your first year which isn't usual with normal start ups. Usually 90% of small biz start ups fail and the ones that do not fail are profitable after their 3rd year.

    There are other important parts when it comes to franchises such as suppliers and equipment but that can be easily done even without buying a franchise.

    Good luck.



     
  3. tonlilaz

    tonlilaz Executive VIP Premium Member

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    holy $hit dude, if you're gonna go for a franchise don't pick one in an industry that's struggling right now....

    i'd stick with a subway or something like that....i knew a guy that owned 4 subway franchsises and hired people to manage them for him....he was doing pretty good.
     
  4. bopkins

    bopkins Newbie

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    Good advice tonlilaz, would definately avoid doing anything in travel :- its a real dog business, margins are always very tight and kind of social/economic event can effect your profits severely.

    I'd stick to subway etc. if I was you.
     
  5. theadultsplayground

    theadultsplayground BANNED BANNED

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    Thanks, I'll take a look at this. Any personal experiences?
     
  6. the_demon

    the_demon Jr. Executive VIP

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    I've known several subway owners who do pretty good as far as I know. Most of them own several as well... Though isn't the restaurant industry the hardest hit with this economy and people being reserved on going out to eat??? or is subway not included in those types of restaurants.
     
  7. premiumsource

    premiumsource Senior Member

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    Yes quite a lot of personal experience as a matter of fact. My family owns a Homevestors franchise. In this case, brand recognition was crucial in our success since this franchise is extremely popular where we live.

     
  8. innocent

    innocent Junior Member

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    When I first read your post I asked myself: "When was the last time I stepped foot in a travel agency?" The answer was at least 12 years ago. These have really gone the way of the dinosaur...

    As far as another type of franchise, my personal opinion is that you are just buying a job. If you opened a Subway franchise, you do realize how much time and effort YOU are going to have to put into it right? Think 60 hour work weeks...at least. If, and only if, you could find a franchise that you could hire someone else to manage it.... Keep in mind that you will have to have employees, insurance, etc. etc etc. And maintaining a good manager or employee for that matter in a fast food environment is very difficult. Again, in my opinion you are simply buying a job that you have a personal investment in.

    Sorry to rain on your parade but in my humble (yet experienced) opinion, a franchise isn't all its cracked up to be. Good luck!!
     
  9. gun-shy315

    gun-shy315 Regular Member Premium Member

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    I'd look for a nice little bar/pub with an established clientele. My cousins bought a place about a year ago and they're doing great. It's nothing fancy. Just a bar that serves wings and burgers. The place had been in business about 30 years and already had a good customer base.
     
  10. theadultsplayground

    theadultsplayground BANNED BANNED

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    I have a friend that owns two bars and makes a killing and the other one does okay. The one that does good is located next to Camden Yards. It's called Max's
     
  11. premiumsource

    premiumsource Senior Member

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    When you own a bar you have a huge liability.

    My recommendation would be a liquor store. Liquor stores do well during the prosper times but most importantly during the recession and depression as well. People either drink because they are happy or sad. Go figure.
     
  12. theadultsplayground

    theadultsplayground BANNED BANNED

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    I want to invest in something that I'm interested in. I mean I do like drinking liquor but I don't know about selling it :)
     
  13. unknownn

    unknownn BANNED BANNED

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    Do you want a real good advice just buy land and start producing food.You will make over the next 20-30 years top earnings cause this is a financial and food crisis and it just started