[jbkunt2]

Hi all,

Just wondering if anyone has ever owned a franchise?

Or have any thoughts on joining a franchise to start a business?

I am considering buying a territory from a home care services franchise. Definitely a growing market but I need to research more into it.

Cheers.

[Lagavulin]

I considered it once, however the 7% monthly fee and 2% marketing fee (in UK) is taken from turnover which equated to approx 28.5% of net profit if memory serves, which was too much for me to when taking a long term view.

Better to struggle and learn in the early years than be tied in to giving such a high percentage of your earnings away forevermore once your business is established.

What exactly does home care entail? It doesn’t sound too complex. Although I understand the attraction of a franchise I don’t think it’s worth the trade off in the long run when the business model is not especially complex. I’m sure there are exceptions, such as a MacDonalds or Starbucks where the revenue is guaranteed, especially if the location is good. This is the other end of the spectrum however.

[Simeon_Strangelight]

There are some good and some bad ones. McDonald's is a good one - for most countries outside of the US that is.

Some take significant cash to do it. Many of the low-end franchises are not more but scams where they off-load risks and liabilities on the franchisee while retaining a massive amount of profits. Research the franchisee forums well - also it takes at least some business acumen to recognize a good one from a bad one.

[Orson]

(02-02-2018 03:52 AM)Zelcorpion Wrote:  

There are some good and some bad ones. McDonald's is a good one - for most countries outside of the US that is.

Some take significant cash to do it. Many of the low-end franchises are not more but scams where they off-load risks and liabilities on the franchisee while retaining a massive amount of profits. Research the franchisee forums well - also it takes at least some business acumen to recognize a good one from a bad one.

I would consider "Battery Giant" - which tries to sell and service everything from watch and cell phone batteries to EVs. It's a worthy service specialty.

Good for 10 years as a career commitment, I think - and buy the land for your retail location, I believe.

It's a growing concern with lots of room to grow! LOOK INTO IT online and map it out.

[Blancpain]

Think about it like the stock market

There are blue chip franchises, Burger King, Mcdonalds,Dominos Pizza

Then there is mid cap franchises Dunkin, Taco Bell

And then you have Penny stocks, franchises that you have never heard of

Avoid the last group
If you get a blue chip one in a nice location then you are basically set for life, but these have very high net worth requirements. Having high net worth is not even enough sometimes, Mcdonalds requires you to have some job experience in the fast food industry before you can apply for a franchise, plus you need to be worth at least a million and thats the lower bound.