Franchises

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Topic Author
youraveragejoe
Posts: 20
Joined: Sat Jul 07, 2018 4:06 pm

Franchises

Post by youraveragejoe »

Hi all,

Sort of random I was curious to see if anyone in this forum has thought about being a franchise owner, or went ahead and made the leap to do so?

If so, which company did you go for and why?

I'm very early in my career, am currently trying to relearn some Javascript and such for additional skill-sets as it looks like I may be in the job market soon but was just curious to see if anyone went the franchise route.

Thanks!
runner3081
Posts: 3820
Joined: Mon Aug 22, 2016 3:22 pm

Re: Franchises

Post by runner3081 »

Try the search feature, many posts about this:

https://www.google.com/search?sitesearc ... =franchise
Topic Author
youraveragejoe
Posts: 20
Joined: Sat Jul 07, 2018 4:06 pm

Re: Franchises

Post by youraveragejoe »

Thanks.
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Wiggums
Posts: 3121
Joined: Thu Jan 31, 2019 8:02 am

Re: Franchises

Post by Wiggums »

youraveragejoe wrote: Thu Sep 17, 2020 12:31 pm Hi all,

Sort of random I was curious to see if anyone in this forum has thought about being a franchise owner, or went ahead and made the leap to do so?

If so, which company did you go for and why?

I'm very early in my career, am currently trying to relearn some Javascript and such for additional skill-sets as it looks like I may be in the job market soon but was just curious to see if anyone went the franchise route.

Thanks!
Are you trying to decide between working for yourself versus working for somebody else?
Topic Author
youraveragejoe
Posts: 20
Joined: Sat Jul 07, 2018 4:06 pm

Re: Franchises

Post by youraveragejoe »

Wiggums wrote: Thu Sep 17, 2020 1:07 pm
youraveragejoe wrote: Thu Sep 17, 2020 12:31 pm Hi all,

Sort of random I was curious to see if anyone in this forum has thought about being a franchise owner, or went ahead and made the leap to do so?

If so, which company did you go for and why?

I'm very early in my career, am currently trying to relearn some Javascript and such for additional skill-sets as it looks like I may be in the job market soon but was just curious to see if anyone went the franchise route.

Thanks!
Are you trying to decide between working for yourself versus working for somebody else?
Yes, I was contemplating some options. Either continuing on my current path, making an early job/career change, and other avenues. I took a look at the threads the other poster had suggested and there seem to be some bad experiences with this route. I guess it all comes down to the specific franchisee and the person's drive/luck/location/timing, etc.
smitcat
Posts: 6957
Joined: Mon Nov 07, 2016 10:51 am

Re: Franchises

Post by smitcat »

youraveragejoe wrote: Thu Sep 17, 2020 1:29 pm
Wiggums wrote: Thu Sep 17, 2020 1:07 pm
youraveragejoe wrote: Thu Sep 17, 2020 12:31 pm Hi all,

Sort of random I was curious to see if anyone in this forum has thought about being a franchise owner, or went ahead and made the leap to do so?

If so, which company did you go for and why?

I'm very early in my career, am currently trying to relearn some Javascript and such for additional skill-sets as it looks like I may be in the job market soon but was just curious to see if anyone went the franchise route.

Thanks!
Are you trying to decide between working for yourself versus working for somebody else?
Yes, I was contemplating some options. Either continuing on my current path, making an early job/career change, and other avenues. I took a look at the threads the other poster had suggested and there seem to be some bad experiences with this route. I guess it all comes down to the specific franchisee and the person's drive/luck/location/timing, etc.
"I guess it all comes down to the specific franchisee and the person's drive/luck/location/timing, etc."
This is always the case with someone who owns their own business.
We had had reasonably success with one small busines and better success with a couple of Franchises - but in the big picture they are not too much different.
renegade06
Posts: 318
Joined: Sat Jan 12, 2019 3:00 pm

Re: Franchises

Post by renegade06 »

On a whim, I applied to Chic-Fil-A and ended up going pretty far in the application process. It was not the best experience, and it confirmed my feeling that it would be better for me to eat there then to operate one. For CF, you don’t OWN anything... you’re an operator, so it’s not really a “franchise” in traditional sense.
usagi
Posts: 340
Joined: Wed Jun 05, 2019 1:08 am

Re: Franchises

Post by usagi »

On occasion I provide franchise consultation services for would be zees as one of my LOBs. Small business development is something I am passionate about. That being said, you simply don't t know what you don't know, which is fine.

IMO. you are approaching this incorrectly. You should begin your education by learning what franchising really is and the major categories of franchises. For example there is a huge difference between retail franchises and B2B franchises, business format franchises and add-on/value add franchises for professionals.

You need to understand the difference between the and the franchisee and the franchisor (affectionately known as the zee and zor). Learn what an FA is and a FDD and what purpose they serve. Understand what a personal guarantee means and the Acknowledgement clause in the FA. You need to understand how the renewal terms work. You need to know how a zor can use an operating manual requirement to instantly change the terms and conditions you operate the franchise under.

Only once you understand the environment that a franchise and franchisee operate in should you look at franchises. You are not ready to look at franchises in until you can answer a very simple question:

Why do you see so many franchisees working day and night in franchises that are not profitable.

Once you can answer that question with authority you may be in a position to actually look at a concept, but not before then. The reason is, you will now be armed with the knowledge you need to discern an ethical franchisor from the herd. If you start looking at franchises before you know what to look for you will miss a number of warning signs or positive signs.

You also need to figure out who is going to be on your team and interview some professionals. You will want a lawyer who specializes in franchising, potentially a sharp industry specialist to vet the actual business side (unless it is professional add-on/value add opportunity, in which case you are the expert), and in the event you are buying an operating concern, a forensic accountant. Whatever you do, do not get a lawyer who is not a franchise specialist. The FA has already been vetted by the zors lawyers, it is legal, the challenge is interpreting how the term impact you.

I could literally write a book on franchising (surprisingly most of them are utter trash)

I hope this helps.

And no, I am not soliciting business. I am fully booked for the next 30 months.
Last edited by usagi on Thu Sep 17, 2020 10:55 pm, edited 1 time in total.
usagi
Posts: 340
Joined: Wed Jun 05, 2019 1:08 am

Re: Franchises

Post by usagi »

renegade06 wrote: Thu Sep 17, 2020 4:14 pm On a whim, I applied to Chic-Fil-A and ended up going pretty far in the application process. It was not the best experience, and it confirmed my feeling that it would be better for me to eat there then to operate one. For CF, you don’t OWN anything... you’re an operator, so it’s not really a “franchise” in traditional sense.
As an FYI, I don't know a single Chick-Fil-A zee who does not take home less than 100K a year. I am sure there are some, but I don't know any. I know of no other opportunity that requires less financial commitment from the zee, nor a more supportive organization that truly believes in giving people a hand up and not a hand out.

Secondly, you don't generally own anything o f merit except the depreciating right to use the branding, method, and procedures of the franchisor. You can argue theory to the contrary, but the simple facts that most FA's define the exit and renewal terms in such a fashion that you retain little of value. The FA will likely call for you to sign the new FA in force at time of renewal, force a remodel to the new corporate standard. IN the event you wish to sell your remaining rights under an existing FA, the contract likely stipulates the zor has to approve the buyer and that they also get a right of first refusal. You also likely signed a non-compete clause (in many states) that will not allow you to run a similar operation at the end of your franchise term.

The reason Chick-Fil-A makes the non-ownership so transparent is because of Truett Cathy's(God rest his soul) particular brand of biblical interpretation and religious views, which in short, command not only do you not dispose of the talents God gifted you, but more over that you must always productively employ them.
Last edited by usagi on Thu Sep 17, 2020 10:05 pm, edited 1 time in total.
000
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Location: Ursa Minor

Re: Franchises

Post by 000 »

No. I have no interest in buying a job in someone else's business.
abracadabra11
Posts: 195
Joined: Sat May 01, 2010 2:09 pm

Re: Franchises

Post by abracadabra11 »

usagi wrote: Thu Sep 17, 2020 9:53 pm
renegade06 wrote: Thu Sep 17, 2020 4:14 pm On a whim, I applied to Chic-Fil-A and ended up going pretty far in the application process. It was not the best experience, and it confirmed my feeling that it would be better for me to eat there then to operate one. For CF, you don’t OWN anything... you’re an operator, so it’s not really a “franchise” in traditional sense.
As an FYI, I don't know a single Chick-Fil-A zee who does not take home less than 100K a year.
This sentence was confusing - I think you're saying that all Chick-Fil-A zees that you know of take home >$100k. Is that right?
usagi
Posts: 340
Joined: Wed Jun 05, 2019 1:08 am

Re: Franchises

Post by usagi »

abracadabra11 wrote: Thu Sep 17, 2020 10:58 pm This sentence was confusing - I think you're saying that all Chick-Fil-A zees that you know of take home >$100k. Is that right?
Correct.
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