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Posted: 8/17/2005 6:24:19 AM EDT
I am wanting to start my own business and am thinking about a franchise.

But which one?
Link Posted: 8/17/2005 10:47:02 AM EDT
I've always wanted to do that as well.

However, we don't have any capital to get started.

Maybe when the youngest kid is finished with school/college etc.

Anyone know how much it cost's to open a Chicken Express?

Fly safe...

Link Posted: 8/17/2005 11:16:36 AM EDT
Aren't there any that don't require a bundle of money to start?
Link Posted: 8/17/2005 11:28:26 AM EDT
I believe some of the sub shops like Subway and Quiznos can be started up for 40-50,000. That is a lot of money but in the realm of franchises, that is pretty cheap.
Link Posted: 8/17/2005 11:35:45 AM EDT
Link Posted: 8/17/2005 11:41:11 AM EDT
No, no, no, no NO!

I've represented numerous franchisees in disputes with franchisors.

The contracts are nasty, one sided, and not subject to open and free negotiation.

When bad things happen, they pull your most valuable asset -- the ability to operate under the franchise and leave you holding all the debt.
Link Posted: 8/17/2005 11:54:58 AM EDT
If I could own one franchise it would be a Chipoltle. I believe McDonalds won't sell them out though. I would put one in walking distance of each major university and make millions.
Link Posted: 8/17/2005 12:07:49 PM EDT

Originally Posted By GonzoAR15-1:
No, no, no, no NO!

I've represented numerous franchisees in disputes with franchisors.

The contracts are nasty, one sided, and not subject to open and free negotiation.

When bad things happen, they pull your most valuable asset -- the ability to operate under the franchise and leave you holding all the debt.



I agree, I've worked with franchise consultants, franchise attorneys, as well a franchisor. If you are the kind of guy that likes to take a system or business and make it better, forget it. Franchisors call ALL the shots. You do what they want, but the book, no more and no less. If you screw up, the legal fees alone will bankrupt you.
Link Posted: 8/17/2005 12:24:19 PM EDT
Haiving been BOTH the Franchisor and the Franchisee...I would have to agree with what is said below. Franchising is like getting married on your first date!

As to the Cheaper Franchises - You honestly get what you pay for. Particularly with a Subway or Quiznos - Be very cautious. Ask them for a copy of their UFOC and you will get volume upon volume of paperwork - spcifically the thousand of legal battles they are fighting with their owners.

There are some very good franchises out there - and for the most part - the great one require a great deal of liquid cash/net worth up front.

Go to the IFA website and start there. BUT remember - this group is a biased too as they are supported by franchisors. Avoid all the magazines you see out at the bookstores - they get paid to be nice and generally only give you contact information.

In my 15 years of being in this field (I now own a private company that sells equipment to franchises) the only ones that have really come through have been some of the smaller Cleaning Franchises. Your odds in the low end food are not good but you can make a living. Some of the better name auto type (Menike sp?) comes to mind can set you up well BUT YOU have to be a great spot to compete and make a living.

No matter what - Run an honest break even calulation for anything you are going to consider. Include your wage..not just the business and you will find out really fast how many of your local franchisees are NOT making any money!

Good Luck!


Originally Posted By xanadu:

Originally Posted By GonzoAR15-1:
No, no, no, no NO!

I've represented numerous franchisees in disputes with franchisors.

The contracts are nasty, one sided, and not subject to open and free negotiation.

When bad things happen, they pull your most valuable asset -- the ability to operate under the franchise and leave you holding all the debt.



I agree, I've worked with franchise consultants, franchise attorneys, as well a franchisor. If you are the kind of guy that likes to take a system or business and make it better, forget it. Franchisors call ALL the shots. You do what they want, but the book, no more and no less. If you screw up, the legal fees alone will bankrupt you.

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