asked for thread to be locked because i wasn't interested in maintaining it. if you go look at the time gaps in my posting there (weeks) that would be clear as would my comments on being burnt out. yes, we all saw you troll the thread with your ridiculous sources, a gelato company marketing piece & a blog post from a young lady with one post in 8 years. my sources are a wee bit better.

i am sorry your incapable of reading the chart. i mean, we are getting a good chuckle about it here while we work, so i should commend you for that.

nice job starting the derail. well done.

Hack,
i apologize for participating in the derail by replying some trolls. I actually re-read this entire thread from post 1 last night (crazy as it sounds i recommend you do the same) it is quite clear when the thread derails. this was one of the better threads in this sub-forum for quite while. reminded me of bf&i years ago when the content was often great. unfortunately many of the better posters have moved on. there is no vigorous debate without informed counterpoint. i wouldn't have blamed you for bailing out on it considering the risks you take on as a franchisee even posting about your franchisor in public forums. you now know a little more about your franchisor & i know a little more about the franchisees perspective. thanks for the thread.

There are no maintenance costs to maintaining a thread. You said extremely silly things about the turnover rates of a company and you got called out.

It would have died on its own had you not made ridiculous claims that you couldn't back up. It would have died on its own even if you had left it on its own due to giving birth to quintuplets after lying and not following up on it. You will note that my very first post on usenet costs me exactly nothing!

You showed no sources. The turnover rates you suggested are a bit better than what could be obtained by forced labor. It is fast food man. Turnover from those on the front lines is a feature, not a problem at less than 100%. We offer easy to get jobs so that people can prove themselves and move on.

No one in the industry wants to hire permanent staff.

You have yet to state how everyone else misread the chart. This is your opportunity to do so. Go!

i partially shared information provided by an "out-of-reach" vp who was part
of a ci job i worked on. there is no nd provision that prevails upon me with
respect to that so i chose to post it.

am i arguing with an imbecile? are you just some kid who likes to troll
and will shortly make one mirrion dollars trading the market?

i'm sorry you can't understand the chart. i'm not going to draw you a map because you continually troll me & others .just continue with your basement analysis like in the hgg thread & i'm sure you will go far.

Your reply had nothing to do with what I posted.

i told you my source. i'm done. you got me to reply quite a few times so you win.

Promises, promises.

Apocalypse this entire post is pretty laughable-and you really need to quit patting me on the head like a slow child, while your sticking it in me....please show me the respect of being able to interpret what you are saying without this kind of patronizing response.

I am far to busy right now to participate in the argument over the chart-I will come back and discuss the underlying reasons for the system AUV's number showing as stagnant (which isn't as bad as you make it seem-but it does have some implications on the overall size of the system imo) but right now I have to many other things on my plate to spend any more time on this

Read post 352 hack. Don't make the mistake of taking these trolls seriously or aligning yourself with them. They are kids with no business experience. The "mod" trolling the thread is a mod because they needed someone to do it.

I'm not joining that part of this-I have read your post and I am happy to continue the discussion-what I want you to do is start treating me as your equal(as I can promise you I am) not your student, understood?

Really? What business experience do the three of us have?

I think this thread derailed at post number four.

hack,
we are all equal here & since i told you when i go back into ops it will be as a franchisor you should realize i am your student. i am very interested in how franchisees understand certain aspects of business-format franchising.

If a real student treated their teacher like you've treated hack, they'd be kicked out of class.

Hack, I've re-read the first hundred posts where you discussed build out of your leaseholds. You seem to have exchanged TI for higher rents, i.e. $375,000 builds (I'm assuming based on 2500sf x $150) exclusive of FF&E for rents in the $30NNN range.

As you have noted if you've read my current thread, I'm planning a leasehold improvement of my own soon.

Did you look at paying for those improvements yourself in exchange for lower rent? With your background in construction, did you consider either contracting it out yourself and/or acting as your own GC?

I do realize that TI is a good way to finance faster growth depending on the terms you're offered. Have all your TI deals been 100% paid back? For comparison, I'm looking at a deal where I'd get $52,000 in TI on a $110,000 build, would pay back $36,000 of it (almost interest free - $1018 per month higher rent over the first 36 months). Of course, if the base rent or CAM are significantly higher than other spots, it's not necessarily a deal - obviously the net cost in the long term takes importance.

I'm not looking for grade A real estate in prime traffic areas like 5G does, so my situation will differ some.

Any other thoughts you can share about some of your builds that you haven't yet?

typically the landlord will have a lower cost of capital than you, so, while you still have to run the numbers vs. financing you can get, it's typically best to maximize TI even though you'll pay higher rent.

ran

pretty much this, although as we mature it becomes a more complicated calculation, as we are signing 10 yr leases, and our cost of money is decreasing pretty sharply. I have followed your thread about your relocation, and in your situation it really becomes a math question I think. When we were a less mature company the landlords definitely had a lower cost of money than we did and were willing to pass it along as a good rate to us in the rent.

As far as trying to be my own GC on the build, this would be really challenging, for several reasons, and I'm pretty sure I would pay almost the same without the protections that a GC will provide in terms of insurance and warranties on the build. (an established contractor in any market will be better able to negotiate the best price as opposed to an individual)

While I don't act as GC on our jobs, I do visit the jobsite on a daily basis for most builds. I feel it is important to make sure things that might be a problem operationally or for maintenance issues are corrected before completed (no matter what your plans say-unless you are there, something will end up wrong and you won't notice until the worst moment of course), and to make sure the subs aren't cutting corners which might cause delays in completion as corrections are far more time consuming than doing it right the first time.

Very awesome thread and I love nearly everything you've said. 5 gold stars.

This was a fantastic thread. Any chance we can get an update?

busto

Thanks, we are still plugging away-currently looking for new brands to add to our operating company.

Not much new to add, perhaps I will give more details later. Little too much on my plate right now to spend much time in this thread.

bumping to read later

thanks, looks like an interesting read.