Top 7 Reasons to NOT Buy a Food Franchise

[@jasond9569]

I agree. I used to own a pizza franchise. I basically bought myself a crappy job, never saw my family. Sold it now I invest in real estate and have a home cleaning business. Never been happier.

[@lynn14921ify]

He is absolutely correct! I owned subway franchises for 15 years & that was 11 years too long!!! I now own real estate.

[@FranchiseCityOnline]

And back then was not even as bad as today! Thanks for the comment - glad to hear you are now free :-)

[@russellseilhamer4552]

I can’t imagine that the margins on subway were all that great especially on the $5 foot long. I personally love lots of meat on the sub so a truly great sub would be somewhere north of $10 When you buy lunch meat at the store, it’s generally expensive and ppl want the highest quality usually it’s too rich for my tastes. I wonder if you got any discounts for buying the meat in bulk

[@Zo-hc2fn]

I am thinking about a new type of restaurants : eating-spots, in eating-spots, food keeps changing, chefs also rotate, this is opposed to current restaurants, thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants along with that, there is an app, people vote for the food that will be cooked in the next days menu is influenced by the live input of the people via an app

[@truthgearsguilty3466]

So now you're working for a Banker.

[@danjenkins2064]

I don’t think people realize how valuable the information shared in this video really is. These are literally a large number of the secrets that franchisors and franchisees keep from the general public. The information is spot on!

[@Zo-hc2fn]

I am thinking about a new type of restaurants : eating-spots, in eating-spots, food keeps changing, chefs also rotate, this is opposed to current restaurants, thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants along with that, there is an app, people vote for the food that will be cooked in the next days menu is influenced by the live input of the people via an app

[@truthgearsguilty3466]

@@Zo-hc2fn It's an IDEA. But how Practical?

[@sentinel151]

I’m not even remotely planning to open a franchise or business, but you put this information out so effortlessly that I’m interested. Good video.

[@truth.speaker]

I sure wish I saw this before I invested everything into subway and dunkin donuts! Now I'm dunkin subway

[@Pernection]

Heard of Daylight Donuts?

[@greenmoney4473]

Wow

[@karapendleton2257]

Fantastic information, and presented in an easily-digestible manner, as always. Thank you!!!

[@FranchiseCityOnline]

Thanks for the kinds words!

[@hassanbazzi3545]

Great and well thoughtful informative video. Most food franchise are like having a salary yearly pay with the headaches. Thank you for sharing

[@FranchiseCityOnline]

Thanks Hassan! Sad but true.

[@Pernection]

A franchise is basically investing in a big company but you do the work and pay for advertising.

[@bluejedi723]

Now, I admit there is always an exception.....like the dude in town I know that bought out a taco bell franchise and the property next to it and opened up a recreational weed shop next to it.

[@msway836]

I know youre not the Finance Guy but could you Talk about the SBA Loans for buying a existing businesses and the different nuances surrounding the process, based on your's or a clients experiences... thanks...

[@FranchiseCityOnline]

Sure, Ill see if we can get one of our finance partners on in a future interview. Thanks for the question.

[@bluejedi723]

Thank you for your brutal honesty.

[@greenmoney4473]

I am really getting a lot of information from this KZbin channel. Thanks Rob for Having the courage to bring people this valuable information to the business owner. Thanks again!

[@FranchiseCityOnline]

Thank you for watching!

[@bindeshpatel8856]

Restaurent Industry is oversaturated. Very well informed video.

[@FranchiseCityOnline]

Thank you for visiting!

[@russellseilhamer4552]

Two things- where I live in Altoona PA, there’s a main strip with all kinds of stores and restaurants thats in a 2 mile radius off the interstate but I’ve seen restaurants thrive in more rural areas like Tyrone and Coalport where locals love their restaurant and people drive from all over because they love the food. These are underserved communities that don’t have much and ppl don’t always want to go into the city to get a good meal. The rents on the main strip are outrageously high anyway. You could buy the building and the land outright much cheaper in a rural area and build a clientele there especially in the age of the internet where foodies are always looking for a new dining experience

[@billkgeorge]

Excellent points. Altoona!! Hearts

[@MsPriyaLal]

I've been hooked on these vids recently. I Like how you focus on the negatives people don't think about.. Ever notice how people like Indians seem to own a lot of these food franchises like Subway , Quiznos, and Dunkin. They are able to get their entire family and extended family in on the business to cut margins and costs. They are also willing to work 7 days a week to keep it alive.

[@FranchiseCityOnline]

Thanks for watching! Very true, many of the owners are extremely hard and dedicated workers.

[@Zo-hc2fn]

I am thinking about a new type of restaurants : eating-spots, in eating-spots, food keeps changing, chefs also rotate, this is opposed to current restaurants, thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants along with that, there is an app, people vote for the food that will be cooked in the next days menu is influenced by the live input of the people via an app

[@realazduffman]

Franchise City--curious if you have numbers for the new Burger King package? New signs and triple drive thru.

[@FranchiseCityOnline]

I have all the numbers :-) Latest FDD (2020) indicates a traditional facility $1,877,600 $3,398,600 . This is the range of actual openings low to high. The cost impact of signage and added drive thru's would need to be determined locally. BK average gross revenues still tracking about half of Mc'd's average units. Thanks for the question!

[@thejokerspeaks]

I had a frienemy in 2003, wanted to open a Quiznos with some less than honorably gotten gains. "I don't care if you've never worked fast food, you can run it! You have to find us a good location. And I don't want to be involved with any of it or hear about problems, just tell us how much money we're making, daily!" This pitch went on for over 6 months.

[@hassanamghar3031]

Love to listen to him. Great info. Are the fast food margins comparable with Europe?

[@FranchiseCityOnline]

Thanks! Sorry I don't have access to European franchise unit financials. My guess would be most of Europe has not reached the saturation point of most large US based cities, but I could be wrong.

[@hassanamghar3031]

@@FranchiseCityOnline Thnx There are some restaurants which haven't opened in Europe yet. I think that can be an opportunity. But I am a physician and I don't like low margins. I think it will be better for me to set up something in the teleradiology space.

[@FranchiseCityOnline]

@@hassanamghar3031 Possibly. If you are receptive to exploring franchise investment via international expansion/master franchising we do have a few options. Bringing a new brand into a country does include risk, but owning the master license can be lucrative as you essentially become the franchisor in that country, receiving royalties from all franchisees in your system. We dont work with individual units outside USA/Canada, however we have done quite a bit of international work via master licenses. Feel free to reach out if you would like to see what is available.

[@hassanamghar3031]

@@FranchiseCityOnline I will definitely do that in the future. Thnx for giving us this info and being helpful to us :)

[@FranchiseCityOnline]

@@hassanamghar3031 Thanks for watching!

[@BenPearlman]

Interesting video. I have a fast food franchise in Australia so was surprised how low the sales are in the US, and how high the capital costs are in comparison.

[@Zo-hc2fn]

I am thinking about a new type of restaurants : eating-spots, in eating-spots, food keeps changing, chefs also rotate, this is opposed to current restaurants, thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants along with that, there is an app, people vote for the food that will be cooked in the next days menu is influenced by the live input of the people via an app

[@FreelanceJanitor]

I’ve built a pretty successful service business, and i might like to franchise it some day. We have high margins, and serve an industry that our competitors haven’t discovered. I’m not sure how challenging it would be to Franchise. my friend who is a commercial developer who also runs a lot of businesses inside his projects told me it can cost over $1m to franchise.

[@FranchiseCityOnline]

Thanks for the question. If you hire a development company expect anywhere between $80k-$120K to get started. There are some "sharks" in the industry , basically franchise mills that charge 30K or less. You can also just hire a lawyer (10-20k) to handle your registrations, then develop your own sales team, or outsource to broker groups. Keep in mind 70% of franchise concepts dont grow beyond 5 units. This video might help: kzbin.info/www/bejne/hqG5k2Suq9JorLs

[@truth.speaker]

I'm sure during the pandemic it's a great idea to open a subway The sad thing is that there really are people doing that right now

[@FranchiseCityOnline]

Lol - sad but true. Thx for the comment.

[@truth.speaker]

@@FranchiseCityOnline thank you for your good advice I can honestly say that there is more good advice for a successful life on your channel than most people hear in the first 20 years of their life! Thanks to your work, I now pity the food businesses I contract with. I literally make more money riding a bicycle than the local Subway I deliver for makes after their expenses.

[@youwillwindaily]

Sales are great if you have the staff to take care of the customers.

[@EZurg]

First thumbs up and first to comment that never happens to me so cool.

[@FranchiseCityOnline]

And a heart :-) Thanks for watching!

[@hassanbazzi3545]

Haha 😂. Congratulations 🎉🎈🎊

[@tjn2254]

Unless you can get chick fil a

[@ohiostatecavs2421]

Only 4% get approved out of all the applicants.

[@youwillwindaily]

You’re a glorified manager. You don’t own or can’t sell the franchise.

[@ryantfinchum]

So who would these franchises be a good fit for? They sound like terrible options

[@FranchiseCityOnline]

Some are actually decent - but right now not the best time to open :-)

[@kissingbanditt]

I make more money from laying in bed then people who go out to work. People. Open your eyes.

[@MrTmenzo]

Unemployment? That's temporary

[@kissingbanditt]

@@MrTmenzo lol. Alibaba. Never had government assistance.

[@samathasmart8281]

😅😅😅

[@sminthian]

Did someone try to sue you saying that you gave them bad investment advice?

[@LinhTran-e3b]

So 0 reason at all to own a franchise lol .

[@skliros9235]

#1 reason: COVID-19

[@FranchiseCityOnline]

Yep - and that. :-)