Two Plus Two Publishing LLC Two Plus Two Publishing LLC
 

Go Back   Two Plus Two Poker Forums > Other Topics > Business, Finance, and Investing

Notices

Business, Finance, and Investing Making money, investing in markets, and running businesses

Reply
 
Thread Tools Display Modes
Old 05-28-2008, 02:26 AM   #1
centurion
 
gigantic's Avatar
 
Join Date: Jan 2008
Posts: 119
About How Much Do Fast Food Franchise Owners Make?

How much money is someone that owns one Arby's bringing in every year? I tried Google with no success.
gigantic is offline   Reply With Quote
Old 05-28-2008, 02:26 AM   #2
CHOO CHOO
 
ImsaKidd's Avatar
 
Join Date: Aug 2005
Location: CHOO CHOO
Posts: 20,655
Re: About How Much Do Fast Food Franchise Owners Make?

Quote:
Originally Posted by gigantic View Post
How much money is someone that owns one Arby's bringing in every year? I tried Google with no success.
Probably like 30-40k/year.
ImsaKidd is offline   Reply With Quote
Old 05-28-2008, 02:43 AM   #3
stranger
 
Join Date: Apr 2008
Location: Floriduh
Posts: 9
Re: About How Much Do Fast Food Franchise Owners Make?

It really depends on the sales volume.

A typical fast food restaurant takes 13-17% to the bottom line. Franchise fees are usually 5%, so figure low end you have 6-8% of sales as profit.

So, if you are doing $3000 a day, that would work out to around 65K a year profit. Tack on another 45-50K if you run it yourself.

All that said, I have been out of restaurants for 4 years, so things may have changed.
12HourRun is offline   Reply With Quote
Old 05-28-2008, 05:27 AM   #4
centurion
 
gigantic's Avatar
 
Join Date: Jan 2008
Posts: 119
Re: About How Much Do Fast Food Franchise Owners Make?

Quote:
Originally Posted by ImsaKidd View Post
Probably like 30-40k/year.
So people are investing 1 million in startup to make 30-40k a year? Really??!
gigantic is offline   Reply With Quote
Old 05-28-2008, 05:39 AM   #5
grinder
 
Join Date: Jan 2008
Location: Macau
Posts: 444
Re: About How Much Do Fast Food Franchise Owners Make?

subway in prime location makes about $200k a year gross in the UK. $30k for the franchise fee and they provide training. It doesnt take $1mil to start up a fast food franchise. Usually the method for valuation is the purchase price is half the gross or the same as 1 year net. If you are paying $1mil for a fast food franchise then you should expect to be getting $1mil net. I think more realistic is $40-80k for the startup cost including franchise fees.
code7654321 is offline   Reply With Quote
Old 05-28-2008, 05:52 AM   #6
banned
 
Join Date: Jan 2007
Posts: 765
Re: About How Much Do Fast Food Franchise Owners Make?

i've heard its very close to 1mm to get a mcd's franchise.
stankpickle is offline   Reply With Quote
Old 05-28-2008, 08:07 AM   #7
Carpal \'Tunnel
 
ArturiusX's Avatar
 
Join Date: Sep 2004
Posts: 19,114
Re: About How Much Do Fast Food Franchise Owners Make?

Yeah my dad used to own McDonald's franchises (in Australia, however). He used to pull some very very good cash, mainly because over here there was little competition. He got out of the game like 8 years ago (wow, time flies!), mainly because too many franchises were starting up, and the menu diversification (ie introducing salads etc) was starting to eat into his margin. He decided to sell up while he could still get a pretty penny.

I'd imagine it'd be next to impossible to print money using a franchise in America, the markets just too saturated.
ArturiusX is offline   Reply With Quote
Old 05-28-2008, 09:35 AM   #8
grinder
 
Join Date: Jan 2008
Location: Macau
Posts: 444
Re: About How Much Do Fast Food Franchise Owners Make?

I doubt I would pay $1mil for a franchise even one like McDonalds. Common sense should tell you there is so manny Maccy Ds a population can eat in a given year in a given area. Everyone is health conscious nowadays.
code7654321 is offline   Reply With Quote
Old 05-28-2008, 09:36 AM   #9
journeyman
 
Join Date: Jan 2008
Posts: 272
Re: About How Much Do Fast Food Franchise Owners Make?

You can still do well in the states with a franchise. Look at it like any other food and bev business. You need an efficient system, good location, and strong local branding.
Corporate would have given you the right to the franchise only after deciding whether or not it's profitable to open a new store. They decide which of their new stores you get if you're a good fit for them. If you are looking to invest in a franchise be prepared for a grind. You could do really well financially but you will be putting in long hours and dealing with lots of attrition. If you aren't ready to do that I would suggest finding better use for your money. There are better options if you have some skills in workign with people and a strong business mind.

Ex: Financial Planning, Network Marketing, opening a JV with someone in the service intdustry, Head Hunting (corporate recruiting), and if you are in the top 5% of business the entrapreneurial pool there is starting a VC firm.
Mikhutt is offline   Reply With Quote
Old 05-28-2008, 11:44 AM   #10
adept
 
Join Date: Feb 2008
Posts: 743
Re: About How Much Do Fast Food Franchise Owners Make?

You don't have to pay 1 million to get a McDonalds, but they do require that in liquid assets..in the states
StockMarketFTW is offline   Reply With Quote
Old 05-28-2008, 12:22 PM   #11
CardRunners Sponsored Forum
 
Green Plastic's Avatar
 
Join Date: Mar 2006
Location: @taylorcaby
Posts: 4,064
Re: About How Much Do Fast Food Franchise Owners Make?

Some guy came in to our college to talk about owning Mcd's franchises. He owned 4-5 of them in the Champaign area. If I recall, you need 1 mil liquid for the first franchise and something like 750-1mm more for each additional one. Anyway, I want to say he pulled in about 100-150k/year per restaurant, and it wasn't like he was working day to day at them. It sounded to me like he had maybe 10-20 hours/week of stuff to do for Mcd's total.

One thing he did say is that he owned a few McD's in the St. Louis area that ended out failing. I was surprised to hear this but I think they were in a fairly bad part of town and had a hard time getting good employees and the restaurant just had a terrible reputation for poor quality.

Overall, if I had the opportunity to buy a Mcdonalds in an average or better location, I'd do it in a second. It's not glamorous and it's hard work (for the people actually on site, at least), but you're going to make money. It's be nice to have a few Mcd's thrown into an otherwise diversified portfolio of equities/RE/etc.

tc
Green Plastic is offline   Reply With Quote
Old 05-28-2008, 12:31 PM   #12
Pooh-Bah
 
Join Date: Nov 2007
Posts: 5,347
Re: About How Much Do Fast Food Franchise Owners Make?

The best idea for starting a new restaurant business is to sample local specialties then bring those ideas to new towns with similar demographics and where you still have reasonable access to the same ingriedients. You'll make a ****load more than opening a ****ty MCD.
Yowserrrs is offline   Reply With Quote
Old 05-28-2008, 12:52 PM   #13
adept
 
Join Date: Feb 2008
Posts: 743
Re: About How Much Do Fast Food Franchise Owners Make?

Quote:
Originally Posted by Taylor Caby View Post
Some guy came in to our college to talk about owning Mcd's franchises. He owned 4-5 of them in the Champaign area. If I recall, you need 1 mil liquid for the first franchise and something like 750-1mm more for each additional one. Anyway, I want to say he pulled in about 100-150k/year per restaurant, and it wasn't like he was working day to day at them. It sounded to me like he had maybe 10-20 hours/week of stuff to do for Mcd's total.

One thing he did say is that he owned a few McD's in the St. Louis area that ended out failing. I was surprised to hear this but I think they were in a fairly bad part of town and had a hard time getting good employees and the restaurant just had a terrible reputation for poor quality.

Overall, if I had the opportunity to buy a Mcdonalds in an average or better location, I'd do it in a second. It's not glamorous and it's hard work (for the people actually on site, at least), but you're going to make money. It's be nice to have a few Mcd's thrown into an otherwise diversified portfolio of equities/RE/etc.

tc
Taylor,

I know a number of owners, and they are all in high end areas. One thing I think you are missing is that even in the good areas, it is hard to find good employees. Local kids don't want to work there because they are rich/spoiled/lazy/dont wanna work at mcdonalds/whatever else. The owners don't want employees from far away that no show all the time. Employees giving free food is a problem with every business. The most successful owner that I know is at his restaurants quite a bit, if it does nothing else, the people that work that see the owner more often making it less likely that there will be as much food loss. In addition, owners who are more involved in ANY business are usually more successful (although I am sure there are good exceptions)
StockMarketFTW is offline   Reply With Quote
Old 05-28-2008, 01:26 PM   #14
Pooh-Bah
 
Join Date: Dec 2006
Posts: 4,892
Re: About How Much Do Fast Food Franchise Owners Make?

Quote:
Originally Posted by Yowserrrs View Post
The best idea for starting a new restaurant business is to sample local specialties then bring those ideas to new towns with similar demographics and where you still have reasonable access to the same ingriedients. You'll make a ****load more than opening a ****ty MCD.
example?

you must have many given your confidence
onlinebeginner is offline   Reply With Quote
Old 05-28-2008, 01:29 PM   #15
Pooh-Bah
 
Join Date: Nov 2007
Posts: 5,347
Re: About How Much Do Fast Food Franchise Owners Make?

Quote:
Originally Posted by onlinebeginner View Post
example?

you must have many given your confidence
If I give you one, will you start it for me and give me a 10% finders fee?
Yowserrrs is offline   Reply With Quote

Reply
      

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT -4. The time now is 10:54 AM.


Powered by vBulletin®
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.
Copyright 2008-2010, Two Plus Two Interactive