Top 7 Reasons to NOT Buy a Food Franchise

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  • เผยแพร่เมื่อ 7 พ.ย. 2024

ความคิดเห็น • 69

  • @lynn14921ify
    @lynn14921ify 4 ปีที่แล้ว +35

    He is absolutely correct! I owned subway franchises for 15 years & that was 11 years too long!!! I now own real estate.

    • @FranchiseCityOnline
      @FranchiseCityOnline  4 ปีที่แล้ว +4

      And back then was not even as bad as today! Thanks for the comment - glad to hear you are now free :-)

    • @russellseilhamer4552
      @russellseilhamer4552 4 ปีที่แล้ว

      I can’t imagine that the margins on subway were all that great especially on the $5 foot long. I personally love lots of meat on the sub so a truly great sub would be somewhere north of $10 When you buy lunch meat at the store, it’s generally expensive and ppl want the highest quality usually it’s too rich for my tastes. I wonder if you got any discounts for buying the meat in bulk

    • @Zo-hc2fn
      @Zo-hc2fn 3 ปีที่แล้ว

      I am thinking about a new type of restaurants : eating-spots,
      in eating-spots, food keeps changing, chefs also rotate,
      this is opposed to current restaurants,
      thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants
      along with that, there is an app,
      people vote for the food that will be cooked in the next days
      menu is influenced by the live input of the people via an app

    • @truthgearsguilty3466
      @truthgearsguilty3466 3 ปีที่แล้ว

      So now you're working for a Banker.

  • @danjenkins2064
    @danjenkins2064 4 ปีที่แล้ว +26

    I don’t think people realize how valuable the information shared in this video really is. These are literally a large number of the secrets that franchisors and franchisees keep from the general public. The information is spot on!

    • @Zo-hc2fn
      @Zo-hc2fn 3 ปีที่แล้ว

      I am thinking about a new type of restaurants : eating-spots,
      in eating-spots, food keeps changing, chefs also rotate,
      this is opposed to current restaurants,
      thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants
      along with that, there is an app,
      people vote for the food that will be cooked in the next days
      menu is influenced by the live input of the people via an app

    • @truthgearsguilty3466
      @truthgearsguilty3466 3 ปีที่แล้ว

      @@Zo-hc2fn
      It's an IDEA. But how Practical?

  • @jasond9569
    @jasond9569 4 ปีที่แล้ว +10

    I agree. I used to own a pizza franchise. I basically bought myself a crappy job, never saw my family. Sold it now I invest in real estate and have a home cleaning business. Never been happier.

  • @truth.speaker
    @truth.speaker 4 ปีที่แล้ว +14

    I sure wish I saw this before I invested everything into subway and dunkin donuts!
    Now I'm dunkin subway

  • @sentinel151
    @sentinel151 4 ปีที่แล้ว +4

    I’m not even remotely planning to open a franchise or business, but you put this information out so effortlessly that I’m interested. Good video.

  • @karapendleton2257
    @karapendleton2257 4 ปีที่แล้ว +7

    Fantastic information, and presented in an easily-digestible manner, as always. Thank you!!!

  • @hassanbazzi3545
    @hassanbazzi3545 4 ปีที่แล้ว +3

    Great and well thoughtful informative video. Most food franchise are like having a salary yearly pay with the headaches. Thank you for sharing

  • @msway836
    @msway836 4 ปีที่แล้ว +4

    I know youre not the Finance Guy but could you Talk about the SBA Loans for buying a existing businesses and the different nuances surrounding the process, based on your's or a clients experiences... thanks...

    • @FranchiseCityOnline
      @FranchiseCityOnline  4 ปีที่แล้ว +2

      Sure, Ill see if we can get one of our finance partners on in a future interview. Thanks for the question.

  • @bluejedi723
    @bluejedi723 4 ปีที่แล้ว +2

    Thank you for your brutal honesty.

  • @greenmoney4473
    @greenmoney4473 4 ปีที่แล้ว +1

    I am really getting a lot of information from this TH-cam channel. Thanks Rob for Having the courage to bring people this valuable information to the business owner. Thanks again!

  • @bluejedi723
    @bluejedi723 4 ปีที่แล้ว +3

    Now, I admit there is always an exception.....like the dude in town I know that bought out a taco bell franchise and the property next to it and opened up a recreational weed shop next to it.

  • @hassanamghar3031
    @hassanamghar3031 4 ปีที่แล้ว +2

    Love to listen to him. Great info. Are the fast food margins comparable with Europe?

    • @FranchiseCityOnline
      @FranchiseCityOnline  4 ปีที่แล้ว +1

      Thanks! Sorry I don't have access to European franchise unit financials. My guess would be most of Europe has not reached the saturation point of most large US based cities, but I could be wrong.

    • @hassanamghar3031
      @hassanamghar3031 4 ปีที่แล้ว

      @@FranchiseCityOnline
      Thnx
      There are some restaurants which haven't opened in Europe yet. I think that can be an opportunity.
      But I am a physician and I don't like low margins. I think it will be better for me to set up something in the teleradiology space.

    • @FranchiseCityOnline
      @FranchiseCityOnline  4 ปีที่แล้ว

      @@hassanamghar3031 Possibly. If you are receptive to exploring franchise investment via international expansion/master franchising we do have a few options. Bringing a new brand into a country does include risk, but owning the master license can be lucrative as you essentially become the franchisor in that country, receiving royalties from all franchisees in your system. We dont work with individual units outside USA/Canada, however we have done quite a bit of international work via master licenses. Feel free to reach out if you would like to see what is available.

    • @hassanamghar3031
      @hassanamghar3031 4 ปีที่แล้ว

      @@FranchiseCityOnline
      I will definitely do that in the future.
      Thnx for giving us this info and being helpful to us :)

    • @FranchiseCityOnline
      @FranchiseCityOnline  4 ปีที่แล้ว

      @@hassanamghar3031 Thanks for watching!

  • @bindeshpatel8856
    @bindeshpatel8856 4 ปีที่แล้ว +2

    Restaurent Industry is oversaturated. Very well informed video.

  • @MsPriyaLal
    @MsPriyaLal 4 ปีที่แล้ว +3

    I've been hooked on these vids recently. I Like how you focus on the negatives people don't think about.. Ever notice how people like Indians seem to own a lot of these food franchises like Subway , Quiznos, and Dunkin. They are able to get their entire family and extended family in on the business to cut margins and costs. They are also willing to work 7 days a week to keep it alive.

    • @FranchiseCityOnline
      @FranchiseCityOnline  4 ปีที่แล้ว

      Thanks for watching! Very true, many of the owners are extremely hard and dedicated workers.

  • @realazduffman
    @realazduffman 3 ปีที่แล้ว +1

    Franchise City--curious if you have numbers for the new Burger King package? New signs and triple drive thru.

    • @FranchiseCityOnline
      @FranchiseCityOnline  3 ปีที่แล้ว +1

      I have all the numbers :-) Latest FDD (2020) indicates a traditional facility $1,877,600 $3,398,600 . This is the range of actual openings low to high. The cost impact of signage and added drive thru's would need to be determined locally. BK average gross revenues still tracking about half of Mc'd's average units. Thanks for the question!

  • @BenPearlman
    @BenPearlman 4 ปีที่แล้ว

    Interesting video. I have a fast food franchise in Australia so was surprised how low the sales are in the US, and how high the capital costs are in comparison.

    • @Zo-hc2fn
      @Zo-hc2fn 3 ปีที่แล้ว

      I am thinking about a new type of restaurants : eating-spots,
      in eating-spots, food keeps changing, chefs also rotate,
      this is opposed to current restaurants,
      thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants
      along with that, there is an app,
      people vote for the food that will be cooked in the next days
      menu is influenced by the live input of the people via an app

  • @Pernection
    @Pernection 4 ปีที่แล้ว +3

    A franchise is basically investing in a big company but you do the work and pay for advertising.

  • @EZurg
    @EZurg 4 ปีที่แล้ว +3

    First thumbs up and first to comment that never happens to me so cool.

  • @russellseilhamer4552
    @russellseilhamer4552 4 ปีที่แล้ว +1

    Two things- where I live in Altoona PA, there’s a main strip with all kinds of stores and restaurants thats in a 2 mile radius off the interstate but I’ve seen restaurants thrive in more rural areas like Tyrone and Coalport where locals love their restaurant and people drive from all over because they love the food. These are underserved communities that don’t have much and ppl don’t always want to go into the city to get a good meal. The rents on the main strip are outrageously high anyway. You could buy the building and the land outright much cheaper in a rural area and build a clientele there especially in the age of the internet where foodies are always looking for a new dining experience

    • @billkgeorge
      @billkgeorge 3 ปีที่แล้ว

      Excellent points. Altoona!! Hearts

  • @thejokerspeaks
    @thejokerspeaks 4 ปีที่แล้ว

    I had a frienemy in 2003, wanted to open a Quiznos with some less than honorably gotten gains. "I don't care if you've never worked fast food, you can run it! You have to find us a good location. And I don't want to be involved with any of it or hear about problems, just tell us how much money we're making, daily!" This pitch went on for over 6 months.

  • @Zo-hc2fn
    @Zo-hc2fn 3 ปีที่แล้ว +1

    I am thinking about a new type of restaurants : eating-spots,
    in eating-spots, food keeps changing, chefs also rotate,
    this is opposed to current restaurants,
    thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants
    along with that, there is an app,
    people vote for the food that will be cooked in the next days
    menu is influenced by the live input of the people via an app

  • @FreelanceJanitor
    @FreelanceJanitor 4 ปีที่แล้ว

    I’ve built a pretty successful service business, and i might like to franchise it some day. We have high margins, and serve an industry that our competitors haven’t discovered. I’m not sure how challenging it would be to Franchise. my friend who is a commercial developer who also runs a lot of businesses inside his projects told me it can cost over $1m to franchise.

    • @FranchiseCityOnline
      @FranchiseCityOnline  4 ปีที่แล้ว +2

      Thanks for the question. If you hire a development company expect anywhere between $80k-$120K to get started. There are some "sharks" in the industry , basically franchise mills that charge 30K or less. You can also just hire a lawyer (10-20k) to handle your registrations, then develop your own sales team, or outsource to broker groups. Keep in mind 70% of franchise concepts dont grow beyond 5 units. This video might help: th-cam.com/video/PpVb1xvm5vY/w-d-xo.html

  • @truth.speaker
    @truth.speaker 4 ปีที่แล้ว +2

    I'm sure during the pandemic it's a great idea to open a subway
    The sad thing is that there really are people doing that right now

    • @FranchiseCityOnline
      @FranchiseCityOnline  4 ปีที่แล้ว

      Lol - sad but true. Thx for the comment.

    • @truth.speaker
      @truth.speaker 4 ปีที่แล้ว

      @@FranchiseCityOnline thank you for your good advice
      I can honestly say that there is more good advice for a successful life on your channel than most people hear in the first 20 years of their life!
      Thanks to your work, I now pity the food businesses I contract with. I literally make more money riding a bicycle than the local Subway I deliver for makes after their expenses.

    • @youwillwindaily
      @youwillwindaily 3 ปีที่แล้ว

      Sales are great if you have the staff to take care of the customers.

  • @ryantfinchum
    @ryantfinchum 4 ปีที่แล้ว +1

    So who would these franchises be a good fit for? They sound like terrible options

    • @FranchiseCityOnline
      @FranchiseCityOnline  4 ปีที่แล้ว

      Some are actually decent - but right now not the best time to open :-)

  • @tjn2254
    @tjn2254 4 ปีที่แล้ว +1

    Unless you can get chick fil a

    • @ohiostatecavs2421
      @ohiostatecavs2421 3 ปีที่แล้ว

      Only 4% get approved out of all the applicants.

    • @youwillwindaily
      @youwillwindaily 3 ปีที่แล้ว

      You’re a glorified manager. You don’t own or can’t sell the franchise.

  • @sminthian
    @sminthian 4 ปีที่แล้ว +1

    Did someone try to sue you saying that you gave them bad investment advice?

  • @kissingbanditt
    @kissingbanditt 4 ปีที่แล้ว +7

    I make more money from laying in bed then people who go out to work. People. Open your eyes.

    • @MrTmenzo
      @MrTmenzo 4 ปีที่แล้ว +6

      Unemployment? That's temporary

    • @kissingbanditt
      @kissingbanditt 4 ปีที่แล้ว +2

      @@MrTmenzo lol. Alibaba. Never had government assistance.

    • @samathasmart8281
      @samathasmart8281 4 ปีที่แล้ว

      😅😅😅

  • @LinhTran-e3b
    @LinhTran-e3b ปีที่แล้ว

    So 0 reason at all to own a franchise lol .

  • @skliros9235
    @skliros9235 4 ปีที่แล้ว +1

    #1 reason: COVID-19