Which Major Food Franchises Make the Most (and the Least?)

[@davenc8527]

I'm the former President of Auntie Anne's. I think you need to look a bit deeper at these brands before you come to your simple conclusions. Yes, Auntie Anne's closed stores last year. Largely because their early-stage growth focused on enclosed malls which were performing well at the time. If you haven't noticed, malls are struggling, particularly during Covid. That's not due to flaws in the Auntie Anne's business model. If you look at the sales to investment ratio, Auntie Anne's is excellent. Shaq did own some Auntie Anne's locations, which was a mistake by the company. He closed them and claimed that "Black people don't like pretzels." An insane comment. Finally, had you bothered to look at Auntie Anne's Item 19 disclosure, their total cost of goods including paper is less than 20%. If you can name another QSR or snack food brand with that gross margin, let me know.

[@FranchiseCityOnline]

I can name another (actually several) better QSR or food brands. Just letting you know. Also just a heads up - always check the dates on videos. Then it would be obvious we weren't covering Auntie Anne's closures from "last year" as this video was uploaded in 2020, long before Shaq announced that he dumped his stores. Blaming closures on "the malls" is the zero accountability attitude we have come to expect from franchisors. Whose idea was it to put stores in malls? If your business model focuses on going into failing malls then yes, that's on you. I actually did bother to look at the FDD. As of the making of this video the 2019 version, Issuance date March 28 amended on June 6th was the most recent one available. Yes, the Cost of Goods back then was actually lower than 20%, so congratulations on pumping those rookie numbers up today, but median systemwide net operating income (the number people actually care about) was only 17.7%, or $85,814 for mall stores. And net store closures had already started in 2018 according to the item 20. Did I miss Covid-18? There were 63 stores listed as terminated or not renewed just in that year alone. 63!

[@123asd109]

This guy's the real Deal. Thanks for keeping my money, in my own hands. You saved me from being seduced by their glossy franchise proposals, potential future earnings and all that other propaganda..

[@KentPaul]

If you see the trend, the higher grossing QSRs have a higher start up costs as well. Maybe a video of which QSR gives you the best ROI?

[@FranchiseCityOnline]

Actually the lowest start-up cost ($10,000) has the highest gross revenue! 🙂 Chick-fil-A average unit volume is over 6 million dollars and only $10k to open. The profit split is quite different to traditional franchises so the owner doesn't benefit as much, but they still are the highest grossing on QSR50. Thanks for the suggestion will ad it to the list

[@hughjazz8416]

Great video!

[@FranchiseCityOnline]

Thanks for watching!

[@theluckshow9617]

I’ve been wanting to franchise a raising cane’s since 2009. All the locations I’ve seen in DFW are not far from schools. The restaurant is a cash cow.

[@sourishsaha8067]

I would be happier if he made a similar video but based on net income rather revenue. Thanks for the video

[@FranchiseCityOnline]

Net revenues vary widely within a franchise system. There are many unique variables including local staffing costs, regional rents, product costs, state licensing & taxes etc. So a franchise in Idaho will have quite different margins than a location in LA, for example. For clients we have a process that can get pretty close to determining the potential net profitability in a given area. Thanks for the comment.

[@allmosts123]

i know that #1 its gonna be chick fil A haha. Their line drive thru is non stop and I am also in that line Lol.

[@davenc8527]

Yes, Chick Fil-A does huge numbers. But their franchisees don't "own" anything other than a high paying salary and a small split in profits. When they leave, they receive NOTHING.

[@TheAmaye]

Can you make a video about how to aquire funds to open a franchise if you do not have that capital to put up at one time

[@jameschiang4458]

Half of Baskin Robbins are inside of Dunkin Donut. Those are the BR locations have low sales figures. Most of the combo stores are in east coast. However BR standalone average sales is about $500k annually. Most of them are in California and west coast.

[@anthonyh2884]

Chil fil a are impossible to open👍🏽

[@thequake180]

Could you please do a video on Carl's Jr franchise? Carl's Jr/Hardee's is a pretty huge chain in the US but I never hear you say anything about them.

[@hassanbazzi3545]

Very great information. Auntie A to my experience are totally out. I have sent two different app at separate times and it is extremely to communicate with them. When I called, there answer was very dry. Thank you for sharing

[@FranchiseCityOnline]

Thanks Hassan! Maybe it was a good thing they didn't reply :-)

[@doinitlive3015]

I am looking to buy an Auntie Annes, I worked at one 15 years ago in high school, and they make very good money. The same store I worked at is still in business!

[@katiemeinke9325]

What about Dairy Queen?

[@hovikog]

What about ice vending kiosks, like kooler ice

[@dabajabaza111]

Good question. The more businesses he delves into, the better!

[@FranchiseCityOnline]

Depends on your location, local placement, and business goals. It can be good but generally a single not a huge moneymaker.

[@danielprohoroff6263]

Can you do a video on tool truck franchises?

[@busmekanx]

Good idea

[@kindafast6499]

The auntie Anne’s simply isn’t accurate. I know a lot of AA owners, a single store is making anywhere from 70k to 200k net profit. And you can start a store for 300-400k. You do the math

[@ExtraServingsBTS]

how about earnings / startup costs? I'll take the lowest if it has a $0 cost.

[@ronanderson1816]

thank you !

[@samathasmart8281]

This is very helpful information. What is the cost for your company svc?

[@FranchiseCityOnline]

Thank you! Our service is free to the buyer, just like working with your real estate agent. Details here: www.franchise.city/our-services

[@chrislemaster2695]

Subway was in trouble when they got rid of the Jared Fogal Action Figures that does 8 different things

[@enriquecapece8689]

Can you do a video on beaver tails franchise. (Quebec, Canada)

[@busmekanx]

What would cost to operate be though

[@FranchiseCityOnline]

Highly varied depending on local labor costs, rent etc. McDonalds has a 12-20% margin, Subway seems to average a 7-12% margin. So on 400k gross maybe 30-50K a year net. That's why most Subway owners try to acquire multi-units!

[@PuerinTheHunter]

I've just got a FB ad for a franchise I never heard about: "Metal Supermarkets". I think they just sell iron, copper, aluminum, steel, etc. Not sure how would that work but it seemed very interesting.

[@FranchiseCityOnline]

We have a complete file on them and every other franchise. Never buy a franchise on your own! Our service is free: www.franchise.city/our-services

[@sumtingwongnow]

Surprised to not see in and out that place has a line at all times

[@user-zq3gf1uj6s]

How can i make money from introducing a *NEW * food item for a food Franchise for ex. LITTLE CEASARS PIZZA

[@FranchiseCityOnline]

If it is a unique food item you can apply for a patent, which would protect you from having the idea stolen. Once protected its a matter of picking up the phone and dialling. You can do the second part without a patent just have them sign an NDA.

[@Ken19700]

How much do Arby's franchises make?

[@TwoGuysLawnLA318]

Canes isn’t going to franchise to anyone besides rare large corporate franchisees outside of the US

[@gman5162]

What about buying an existing franchise like an Auntie Anne’s for way less than it would cost to open one up?

[@FranchiseCityOnline]

Likely to be losing money and can be difficult to turn a retail food business around. There are hundreds of failing businesses sold to newbie buyers each month - you see the same business being re-sold again over and over. Dont forget while you MIGHT be able to get out of the franchise agreement and not owe liquidated damages, the landlord legally can hold you to the full period. That is a huge commitment often $250k+ if you cant find a renter. You dont need to make the decision on your own - just call Franchise City! www.franchise.city/our-services

[@boarding112]

What about the average profit? Those are the numbers I prefer to see.

[@FranchiseCityOnline]

Varies widely and is not usually tracked by the franchisor as royalties are paid on gross earnings. There are ways to obtain net numbers during the diligence process it just takes a bit of work :-)

[@boarding112]

@@FranchiseCityOnline Thanks!

[@ricktandski2077]

I sure would like to know what you know about the bimbo bakery franchises, good deal bad deal

[@kaejolie]

how much does a CarStar franchise gross?

[@FranchiseCityOnline]

Their most recent FDD states Median gross of all facilities included in the report was $2,537,940. There is a lot more data included so if you are considering investing be sure to read the entire doc. If you need help finding a franchise feel free to call Franchise City brokers: www.franchise.city/our-services Thanks for the question.

[@youngdrey1]

Is it a good idea to open a chick fill a

[@MikeeeGrills]

He doesn’t want to be hands on, im a hands on guy.

[@GhostruckerX]

Chick fil a is good but not if the business works you and doesn't free your time.

[@sherrancehenderson3353]

WOOOOOOOOOOOOWWWWWWWWW...SMH thanks for the information.

[@FranchiseCityOnline]

Thx for watching :-)

[@rajdeepsidhu344]

Raisin canes not franchise...

[@FranchiseCityOnline]

Yes but the title "Which food franchises and non franchises make the most and the least" was kinda long :-) Thx for visiting.

[@HN-db5cn]

They stop franchise for now because of rapid growth and want to concentrate on the few to better serve his franchisee.

[@hwalia12]

You are such a NEGATIVE NANCY. Rename your page Don’t buy any Franchise, Just buy Chick Fil A. Oh wait. Chick Fil A ain’t a Franchise.

[@FranchiseCityOnline]

You do realize we are all franchise owners...right? kzbin.info/www/bejne/Z6rYn5Suj7CsfKc Careful analysis is how to get rich - not blind enthusiasm. Oh and And Chick fil-a is a franchise.

[@mrcharles4636]

Just stay away- he's educating a ton of us for free- be thankful or be gone