Calling all franchisees

xabi

I have some money to invest and was looking at franchise opportunities. The better know brands have a higher setup fee obviously, what kind of money can be made with a successful franchise and what's best to get into now?

Gloomtastic!

How much do you have to invest?

jimmii

You can make millions from a successful franchise still. What's best is going to depend on how much money you have. If you can afford a McDonald's then that's pretty much safe as houses or whatever we say instead of houses since they didn't prove to be as safe. Maybe we should say safe as McDonald's?

xabi

Should have said, my max investment will be 100K for the right venture.

How much time do you have to give to it?
Full time or will you be working besides?

xabi

I'd be working besides until the need arose to go full time

Water John

Well the ratio of personal capital to overall cost is important. The business plan and the franchisor will dictate that. 50/50 to 70/30 from what I've read.
The devil is in the detail.
The upfront payment. The % of the turnover as a sales levy and % to promotional budget are the two ongoing costs to the franchisor.
Also do you have to buy all inputs from the franchisor?
The costs of site, outfitting, training and also ongoing costs of a period of time should be in the business plan.

If the upfront fees are high relative to the overall business set up costs, be wary. This may indicate , the franchisor hasn't that much confidence in his own business model.

Look up the details, as on Chopped, for approximate figures.
Chopped itself seems to be fully suscribed ATM. Also one has to consider if it has a sufficient USP.

ironclaw

Water John wrote: »

Look up the details, as on Chopped, for approximate figures.
Chopped itself seems to be fully suscribed ATM. Also one has to consider if it has a sufficient USP.

Chopped, to me anyway, is a bubble. Like Starbucks, it will eventually saturate. The exact same chain idea 'Tossed' was and is operating in London for years. They now have many competitors and strolling past a few over the last year, I wouldn't call them extremely busy by relative comparison to the others around it. Like most things in Ireland, its a novelty and will be quickly copied. I don't see them retaining serious market share. Feedback from their customers to me has been pretty mixed, most people agreeing on the price is too high for the quantity / quality offered.

NathanDrake

xabi wrote: »

I have some money to invest and was looking at franchise opportunities.  The better know brands have a higher setup fee obviously, what kind of money can be made with a successful franchise and what's best to get into now?

Chopped seems to be the flavour of the month right now. I read somewhere it cost approx 20K to get on the chopped franchise

meijin

NathanDrake wrote: »

Chopped seems to be the flavour of the month right now. I read somewhere it cost approx 20K to get on the chopped franchise

not much of a secret

from http://www.chopped.ie/franchise.html

How much is the franchise fee?
€20,000

How much will it cost to open my Chopped store?
To open a Chopped store, the turnkey capital cost will be approximately €160,000. This includes a provision for working capital.

What are the continuing fees?
Franchise Royalty: 6% of Net Sales
Marketing Contribution: 2% of Net Sales

Water John

That's just the upfront payment.
Looking at about €150K for turnkey and floatation.

Beat me there, Meigin.

Conservative

I have worked for (employed) and developed my current business through working for an international franchise (all 30+ Irish franchisees have closed or withdrawn from the chain since). At least 50% closed and another Irish franchise that developed from the original one has lost about 70% of its stores.

I know a number of others who were burned badly by differing franchise models (O'briens, Subway to name a couple) so it would be my personal opinion that the master franchisee will take the guaranteed models and leave the slim pickings for the rest.

Unless you have McDonald's type money you are buying into a model that is debatebly workable.

100 grand goes nowhere in the "established franchise" world imo.

Conservative

I have worked for (employed) and developed my current business through working for an international franchise (all 30+ Irish franchisees have closed or withdrawn from the chain since). At least 50% closed and another Irish franchise that developed from the original one has lost about 70% of its stores.

I know a number of others who were burned badly by differing franchise models (O'briens, Subway to name a couple) so it would be my personal opinion that the master franchisee will take the guaranteed models and leave the slim pickings for the rest.

Unless you have McDonald's type money you are buying into a model that is debatebly even workable.

100 grand goes nowhere in the "established franchise" world imo.

Zascar

A friend of mine is selling a Franchise Consultancy - he needs someone to take over the business and act as a consultant to people who want to expand their business using the franchise model. Turnkey business, great brand very well known, great social presence and at exhibitions etc. Great opportunity for a self starter to run their own consultancy - can work from home etc. Excellent earnings potential by getting a few clients on board. I can't give any more details here but send me a pm for more info..

odeamarcas

Hi Zascar, trying to pm you re your post, but the app won't allow me. Could you touch base with me?
Thanks.