Any great tips/advice on owning a franchise?

I'm thinking of buying one. Excuse my ignorance but what would be an ideal choice for this process?
Do I need a business degree? How do I choose a location? What is my financial responsibility? How to avoid foreclosure/bad business? Who is in charge of hiring people? How do I profit off of this the best way? How do I determine/budget employee wages?
Thank you GAGers! in my opinion to most detailed input (:
Oh and just throwing it out there, I was thinking of a Yogurtland.


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Most Helpful Guy

  • The franchise will help you find a location, they do the training but you do the hiring your financial responsibility is different from franchise to franchise but as a rule you will need to cover all opening costs, equipment, rents, initial inventory, fixtures, etc. you will also be on the hook for a percentage of your gross income and possibly a franchise fee. You will not need a degree in business, but certainly have a good lawyer on your team, as well as someone else with franchise experience (build a team, don't try and do it on your own) Profit is based on door swings, so you market the heck out of your location (not rely on the franchise parent) and maximize EVERY sales opportunity. Be aware of your competition and watch the trends in the business. Entrepreneur magazine puts out a yearly list of the top franchises I'll put the link below. There is also a "Nightly Business Report" on Franchising that is pretty good, I'll include a link to YouTube for it
    www.google.com/url

    www.youtube.com/results

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What Guys Said 4

  • cool, a question about business, so you want to become a franchisee eh?

    "Do I need a business degree?"

    not really, the franchisor might be willing to give you the training, education and information you need but it would be helpful if you knew about stock (J. I. T./J. I. C.), labour turnover, customer service (internal &external) chain of command etc .

    "How to avoid foreclosure/bad business? "

    Listen to the customers and watch the figures, watch the "word of mouth". If things get bad the franchisor might be willing to bail you out

    "Who is in charge of hiring people? "

    That would be up to you. . . unless you pick someone else to do it

    "How do I choose a location? "

    You don't, the franchisor will probably do it for you, generally you don't get a lot of control as a franchisee

    "What is my financial responsibility"

    The main responsibility would be royalty payments to the franchisor

    "How do I profit off of this the best way?"

    If things go well you could open another store, if the brand is well known the money should be rolling in

    "How do I determine/budget employee wages?"

    You'd have to look at the fixed costs first, then try to predict the variables

    33.media.tumblr.com/.../...02zJfR1sxcftfo1_400.gif

    I hope this helped. . . I'm ready for sleep now

    P. S. I don't have no fancy business degree

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  • Get a business operations management degree.
    While doing that find an entry level management job in the company you are thinking about buying into.
    Find something you like
    Evaluate the companies financials- if the numbers aren't though don't do it no matter how much you like it.
    Consider brand strength, growth, franchise opportunities (parallel companies look at YUM food for an example) , and what interests you.

    Chick fil a, zaxbys, are growing. You'll have to do some market research into corporate investor relations and franchise opportunities on their corporate sites. They should be able to spout this stuff out quickly.

    You will need to know:
    PL Operations
    Food regulations
    CapEx operations
    Labor management
    Employee, customer relations
    Vendor management
    Recommend you study Lean management and Six Sigma Quality

    Questions to ask:
    How many new stores are you planning to open per year over the next 10 years
    How many did you open last year and over the last 5-10 years, are they on track?
    How many closed? Should have more open than close.
    What requirements are there of franchise owner agreement, send me one, if not let me speak to a franchise owner.
    Do I need to work in store for x years prior to owning, if yes, I'm planning to work as I go through college will that count.
    How much capital do I need? Do you have a business plan for franchisees.
    What is the typical annual revenue per store, sure it fluctuates but they know about what a store should do.
    What is expenses per store, what is margin $.

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  • You need to contact the business you were thinking of franchising. The company usually has a packet of information for potential investors they send out. This packet will include how much is needed to start the franchise, how profit sharing goes, advertising fees paid to corporate, how the hiring process goes and some of them will include training to new franchise owners at corporate. But it really depends on the franchise. One franchise makes you franchise three locations at a time while others will let you franchise one at a time. A lot of them though require the potential investor to have previous experience within owning a business or franchising.

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  • yogurtland? LOL sounds good... will u have ice-cream as well?

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What Girls Said 1

  • study business and you'll know all that.

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