Opening A Franchise Is Harder Than You Think
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The thing is that you can produce the same product independently and you have options as far as vendors and products Pizza Oven isn’t that expensive a Dairy Queen dispenser is not that expensive you’ll spend more money for the health certificate franchises are like HOA it’s not something you want to get involved in at all
There are positives about owning a franchise as well. Trading on the name of an established brand brings in tons of “free” customers that you don’t even have to advertise to. You also don’t really have to spend time on R&D to come up with a concept and you don’t have to spend time thinking of where to source the products. It’s a trade-off. Many franchise owners make more than they could ever have made if they started a business from scratch.
Amen brother! I worked at a mechanic’s shop for 8 years before I realized I can make 2-3x the amount just working alone and mobile. At least I can say the 8 years was to get good at the job and get all my mistakes learned before starting for my self. This is great advice to anyone if your job is possible to do yourself just do it yourself. You make more money and have no one telling you to cut corners or save time or money. I make sure my customers are happy for a fair price and that is what makes me happy.
Those dispensers are like 10k+ and you have to have a service contract you pay for yearly it’s not as cheap as your making it seem
If it was so easy to be independent. Then why is every road covered in franchises and not independent businesses.
Sadly… you’ve been misguided if you believe any of this.
Yep theyve made business models all about the big corp and said screw the single location franchise
If that were true people wouldn’t be opening franchises
If it’s a single location then it isn’t a franchise. 🤣 Kinda of anti-intuitive right? Do you read what you post?
@michaeldove339 Your response to their comment is a great example of — A poorly worded statement meeting someone with no reading comprehension and an ego
We had one open in our Walmart parking lot strip. It closed within a month. I bet it cost the investor six figures.
Franchise system had its hey decades not heyday.
Franchises are rude to their franchisees. They do not care about them at all and they cannot do the critical thinking necessary to keep a location open. Many MANY franchises also fail due to local construction codes and the inability to get a physical plant that makes sense for the consumer base. And event if they do the increased overhead costs of the franchise fees eats up critical monies necessary to save for down periods. Franchises are mostly scams now. They harvest too much of the income.
I worked at a place that made us stay open. The owner told us to stay open. Its so shady considering by the time covid hit there were about 40ish stores. Now theres 10 and theyre still pushing on like nothing is happening. Infact everyone ive come across who has bought into the franchise likes to remain ignorant to the fact that they dont actually make money and dont question why the business fails. Personally i think its a money laundering scheme. The majority of our sales were from giftcard sales. Very sketchy.
This is literally any restaurant business not just franchises lmao. We have had ppl get arrested during their shift, od, fight other employees, show up drunk, walk out, oversleep etc. This is in restaurants from causal to fine dining. Less so in fine dining but there is a reason they’re the one of the hardest businesses to be successful in
And quite frankly so many different ways of spending money on food shouldn’t even exist lowkey
So true I have management experience in restaurant, retail, office settings and a few other areas. However I always say that restaurant management is the most stressful and difficult of them all. Mainly due to employees doing exactly what you mentioned calling our last minute, no shows, coming in impaired. Plus rude customers on top of your regular management tasks like scheduling and attempting to budget.
That’s not the point he is making in the video.
The point he is making is the cost of the business. Franchises can cost thousands of dollars a month (i know from EXP). So that tight budget that restaurants run on becomes even tighter.
Not the point. With a franchise it sounds like you’re required to be open when they say. I work for a family owned business and if our closer calls out and we can’t get someone to cover we just close early.
Profits are not made, from… Fair exchange of value. Franchising is like gig economy uber, profits for the rich, risk for the working class..
Depends entirely on what the franchise is. Some are absolutely worth it. Some are a waste of money
Franchises take advantage of established brands. If you’re stupid, that’s on you.
Correct workers produce value not the owners of the company or franchise
Gotta wonder what kinda argument a frozen yogurt shop made that they were an essential business and needed to remain open 😅
All the responsibility of being a small business and getting treated like an employee.
This is just called owning a local restaurant or business. It is nothing to do with the fact that it’s a franchise.
You can close a local restaurant whenever you want. Franchised businesses can make rules built into the contract. If I own something of my own and i make the money i need in 15 days out of the month. Nothing stops me from shutting down for 15 days
@brianshutlz5027 except for that five year lease you signed… Franchisees have the same day-to-day business dynamic issues that any non-franchise businesses. You are right there is a contract but most of the time the Franchise company if you are struggling, we’ll find a way to help you or try to help you find a buyer for your business or let you out of the contract with some penalty. With brick and mortar business is the landlord is far less caring than your Franchise company.
Has everything to do with it being a franchise. The store HAS to open at 9, you can’t just open late
I own a franchise and do well. Sure there’s ups and downs, but having a good staff is a result of having a good GM. I’m sure his friend is way smarter than I am but just might not have found his guy to help build culture and run the place. It definitely isn’t for everyone
Exactly- I’m a general manager. I di not call in unless my assistant can cover. My employees hardly ever call in. If they do, I’m the one covering for employees, not the owner..
Thats called being a manager. If you want the owner lifestyle then hire a manager and pay them.
The manager is an employee who can call out as the video states. It doesn’t fix the core issue if not being able to open and close on your own timeline.
@theeyeofmangoIf a manager calls out sick with no notice and leaves you hanging they need to be fired. An obvious emergency would be an exception.
@btd7477did you not watch the video? Even If you fire them you still have to go
@theeyeofmangoThat’s why you have a assistant managers/shift managers.
@rinathamaI mean, he said nothing about firing. But, this is why you need a GOOD manager and assistant, as well as a couple good supervisors. I’m a general manager, I do not miss work- unless I have my assistant cover me. I’m the one who’s covering for my employees. I don’t think the owner has worked a day in his life in any of his stores. And, depending on how long one of my employees worked there- they would be fired for a no call/no show, repeated call ins, or just dipping out. Sounds like he didn’t know what he was doing.
Having a Franchise is just being an employee of the chain but with a bonus based on performance.
This is the problem.
If you want to own a business, work there. Period. Far far far too many people think they can just buy something and it will run itself. That is not how it works, and why many businesses are run into the ground.
That’s literality how businesses work. What are you on about. People appoint CEOs so they don’t need to run the company themself. Like Elon Musk and Jeff Besoz have tens or hundreds of companies underneath them, they only actively work at a few of them each week and the others are managed entirely independently.
If you’re a business owner and you’re on floor working a normal job for 80 hours a week, you’re not a business owner. Licensees for franchises will employ supervisors and managers to keep the day to day operations open without the business owner doing anything, and the owner focuses on long term growth strategies. A good business owner will even hire someone incharge of those strategies and then the owner is completely free to spend all day at the golf course
It’s generally good practice to be around the business so the employees know who you are. But you yourself shouldn’t be doing the majority of the work. You hire people to do work.
This is why people getting replaced by AI. Y’all are terrible and often times bad investments
The ONLY franchise I would consider would be Chick Fila
Franchise is a ponzi scheme. Most franchises base their commissions off gross sales not net revenue, so they’re getting paid before anyone else. Also they can lease the buildings back to owners and require the owner to purchase food and beverages from a central commissary distribution center. They have everyone cornered and the business owner will be the last to get paid.
My lady has worked in a kitchen for 3 years. She has averaged 1 person quitting every month for 3 years