I think if you knew exactly how to value location you would be very, very rich.

I'm jumping in late, but fwiw, I've heard that it's not really worth it until you have 3-4 franchises set up - then you start making really good $$ and the effort pays off.

The variance in nightclubs seems pretty sick. I know of a lot of clubs in NY/NJ that went from minting money to busto in very quickly. I think this is unavoidable to some extent, even with good management, in the more competitive markets. Club goers tend to be very fickle and like to change things up from year to year.

The club business seems like the type business to be in for 2-3 years, bang a lot of coke whores, and then get out while still on top.

...sounds a lot like pop rock bands

If you aren't revamping annually in NYC you aren't gonna survive.

The big owners in NYC run multiple joints and they tear the places down as soon as business begins to drop off.

For franchises, its not exactly rocket science. How a lot of franchise companies value location is pretty systematized. But whether they share that information with you is another story.

I heard that also more than a few times about franchises like Subway. That to run just one operation takes a decent amount of time but each subsequent franchise adds time but not in the proportion of franchises you have. But this is just what I heard in L.A.

probably a "captain obvious" comment, but you really want get in on the ground floor of these opportunities (mcdonald's, tim horton's in canada) as it will be much cheaper and you can get a really good location. now obviously it wasn't obvious that mcdonald's would do so well....

but i guess i'd really look at up-and-coming type franchises.

or even start your own. like the local golf dome/mini-golf here in canada is always packed, even in the summer. and you can book indoor football/soccer for off-hours. just one type idea. and the only things i see costing alot of money are 1) the dome itself and 2) heating it in the winter. real estate isn't bad at all (where i live. not everywhere)

local ice cream joints are always packed in the spring-fall, and seems like easy business to start/operate......... just some ideas.

id like to own one of the subways at the busy airports

the one in vegas charges 14 dollars for a footlong, no combos and overcharges for drinks and chips as well. my standard meal was like $20 there as opposed to the standard 9.40 at every other subway in existence

in addition they are always crazy busy and i would assume to be doing massive volume

no idea if space in airports is tightly controlled or ridiculously expensive, but i cant see how whoever is behind these subways isn't killing it

that's the right type of thinking........ although as you allude to, i'm sure subway and las vegas airport knows that too. might even have to be corporate store (again you allude to this possibility too)

Lease rates are probably ridiculously expensive. The downside and upside is probably pretty big in both directions. But you know I cant remember seening a Subway in an airport. And Ive been to a lot of airports. Kind of weird when I think about it.

the other thing about airport concession is that it's often a huge payola racquet. there's so much "free money" involved that people friendly with local government get the contract(s)

what does it take to get a licence to sell lottery tix and scratch-offs? i was thinking of setting up a cafe with lots of newspapers, magazines, internet (whatever) and market it as a place to hang out and play scratch offs. like a "scratch-off den".......... it makes me laugh when people hole up line at gas station scratching off. they need that quick a fix

At the McDonalds by me, they bring all of the workers in from the ghetto. A few have been there for 10 years plus and live like an hour away. One of my friends worked there in high school for a month or two. He stole everything that wasn't bolted down. We were still vandalizing buildings with the big cardboard tubes of Big Mac sauce 6 months after he got fired.

I've read this whole tread, and i like it
maybe cause i'm in the food branch myself.


ATM we own (family) a good running steakhouse, €500K in sales a year

I've been researching food franchise a lot last year, so i might be helpful in this tread.

I've been interesting in opening a McD, KFC, BurgerK, Dominos, Subways
and i've have talked to all of them last year.

And i can tell you that Mcd requires ONLY 150K Euro in liquid cash (of your own), thatssssss it you'll be loaning the rest (550k-650k) (this is in europe obv)

But as somebody already stated, it isn't the goldmine like it was 10 years ago
And you will be working very hard for +/- 100k a year. But perhaps there is still a future in it, if you're smart and are willing to work hard the first 2/3 franchises you open. After that your managing skills will determine your success (you will basically have a company in a company)


But eventually i've rejected the offer, cause i liked KFC a bit better

they're basically looking for a "area developer". you need a lot more cash (+/-1.5M)

But for that you're given an area or a big city, which becomes your territorium, for example in my city all the KFC's (4) are owned by one person, who started only 4/5 years ago. he's prolly loaded in 5 more years

Too bad i don't have the 1.5M right now, but as soon i have them i know what to do with it.



As for now i'm in the final stage of opening DOMINO'S PIZZA (delivery)
Delivery is very booming in europe right now. And is expected to be in the future

I expect a nice ROI, cause initial investments where only €150k (only €50k from my own money)

and sales are projected to be something like 400-500K a year, i hope i can open up my second within 1.5 years, and retire in 10 years wish me luck

this is sooo not true in the restaurant business, hell this isn't even true for banks these days

you'll be looking at between 2-5 years your initial investment (i'm obviously obviously letting out any real estate)

I am curious as to what the vetting process is when buying an existing franchise restaurant. Does the franchiser hold the buyer to the same financial requirements as they would someone who wants to build one from scratch? It would make sense that they would be more lenient because the costs are known...and they generally have a good idea of a projected sales/profit range. Also, what about the industry experience requirements (i know it varies...but im talking about generally).

I only ask because I am young (mid 20s) and have no business ownership experience, and was debating whether i should buy a convenience store/liquor store or an existing fast food franchise. I think both categories would tend to hold up well in a depressed economy.

Also what do those that have experience in owning fast food places think of this listing:

2 fast food locations listed at 360k for both (or 215k and 165k each). Both have been in business for 14 years. one grosses a reported 540k and nets 90k...the other grosses 444k and nets 66k.

They are not in the nicest part of town...but its by no means the ghetto. I would call the condition slightly outdated interior...but clean and well maintained. The out side looks solid. Both have drive thrus. Both have full time managers in place. The owner was somewhat involved in the operations.

How accurate are the reported gross/net generally?

http://www.thefranchisemall.com/fran...ortunities.htm

Try this site. Drop downs at top for different types. Gives costs.

It is my understanding that they use only one beef supplier and warehouse and will not freeze their beef. The warehouse is in SoCal, so all In 'n' Out locations are restricted to whatever distance from the warehouse it is possible to transport refrigerated, never-frozen hamburger without risk of spoilage.

Hi is that good idea open subway in canada or australia ???

Depends on what you want and what your other options are but generally no for most people it really isn't that good of an idea.

Well, what if you could open a MCD franchise and pay no franchise fees?
One can easily argue the fee is underpriced given that markets dont seem to price buffett type 'moats' very well, as those types of competitive advantages doent show up on GAAP balance sheets. I dont have a strong opinion one way or the other but I would not dismiss this business with that index fund analogy that you made given that MCD seem to have a off-balance sheet buffett type moat that doesnt exist on that analogy

That would make it a restaurant then, not a chain with national support.

I did an accounting case study few years back on an local mickey d's owner in the urbana - champaign area.

he had 4 local mickey d's on campus and his net profit on the books was 2 mil. the figures, according to our professor, were all accurate and not made up for the case.

I think the important thing to take from that is that they were on campus. I know a guy who had a Harvey's on a campus and my GF is friends with a guy who has a Pita Pit across the street from a campus and they both make very good money.

what's very good money?