Should I Buy A Franchise? 5 Pros and Cons You MUST Know
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- Опубліковано 30 тра 2024
- Should I Buy a Franchise? Pros and Cons of owning a Franchise directly from Franchise Owner Tariq Johnson. Should you buy a Franchise? Buying a franchise or starting a business is scary. Many people consider starting a business or buying a franchise in retirement or various stages of life. Having a successful franchise business is possible, but is not always easy. Franchise City.
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#1 WHY DO YOU WANT TO OWN A FRANCHISE?
When my wife and I decided to open our first franchise we wanted to create an additional income stream, so that at some point I could leave my career as a Financial Advisor. We figured having an additional income stream would be a way for us to plan smart.
#2 MONEY
The average franchise cost $250,000 to get up and running.
That number should scare you. People have lost a lot of money investing in franchises and made a lot of money with franchises. Ultimately your financial situation will determine what your options are.
Now if you don’t have any money- I’ve made a video on exactly how you can invest in a franchise with no money. I’ll link the video in the description below, and you can check it out.
The lower the start up costs in a franchise typically means the more work and effort you have to put in.
3 New or existing Franchise Location?
Are you planning on starting a brand new location, or buying an existing one?
Many times the franchisor may know of franchisees in the system that want to sell their location. Make sure you ask about that
Franchisors may not always want to share that information without being asked.
Existing locations could provide immediate cash flow, and stability and be a great training ground for you to open additional locations.
STEP #4 YOU
What are your skill sets?
What are you good at ?
It’s important to align your skill sets to the business.
Can you handle your current lifestyle being disrupted because you own a business?
#5 System-
Can you follow a system? You are buying a franchise for the system and the process.
You have to follow the process.
If you are someone who doesn’t like to be told what to do and do things your own way than a franchise probably isn’t for you.
Make sure you are prepared to follow the system and talk to other franchise owners about their experience of how flexible and open minded the franchisor is about new ideas to help move the business forward.
#6 Franchise EXIT Strategy
I’m a firm believe that you should be committed to what your doing but your exit strategy is really important.
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I’m in a position that, I’m well rounded in different aspects of life, and just working towards the dreams of someone else just isn’t an option any longer
Boom. I think a lot of us can relate to that Freddy. Go get em!
Patient persistence commitment
Is 4% profit margin is enough for franchise business? Franchise fee 7.5% on turnover and average monthly sell 96000 euro per month , it’s a burger restaurant and reputation is healthy.
Thanks allot bro you're the BEST ! and you have a special gift when it comes to choosing the right words to get your point across FANTASTIC !👍
Wow Charles, thanks so much for such genuine and kind feedback!
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
Tariq, great video! I liked how you started with the "WHY." I think a lot of people get caught up on the hype of wanting to own a business without really knowing WHY they're doing it.
Thanks Leo! Start with why!
I just watched your other video, and now this one. It answered so many questions but now I have a lot to think about!
Glad it helped! Think and then DO!
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
Glad you are sharing all of this information. I hope you share how you made our first franchise profitable in the first few months. Some people want to be entrepreneurs and own franchises and think because they are in a system they will make money but that is not always the case. Thanks for sharing!
I will definitely be sharing that! That's very true, just because you buy a system doesn't mean it'll be successful.
The first one was about $300k to open brand new
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@@TariqJohnson how’d you get the 300k ima 9-5 guy for big pharma studdy stock options to get my 300k not sure on the path to take but feel as I best just grind this
Just don't power trip and expect from your underlings unrealistic goals. I was a manager bullied by my franchise owner expecting me to clean, prep, and ready morning shift by 12 am. The drive through stayed open until 11:00: am. I worked by ten pm solo. I've had to test the alarm so many times 4:27
Great summary Tariq. The 'why' part is so often overlooked, but so important.
So true! It’s the fuel that powers your “vehicle” that gets you to your destination!
this was extremely an extremely insightful video, thanks for the knowledge!!
My pleasure! Glad you enjoyed it. Make sure to grab my 7 step blueprint from my website if you haven’t already.
Thanks so much for the insight Tariq, I will be reaching out after going through the links you added. Thanks for sharing again
My pleasure.
Great info on starting franchises. The exit strategy was one of our last items we discussed.
Thanks! Exit strategy is key.
Thank you for making these videos. 🙏🏻
My pleasure!
Thank you so much! Wonderful video.
You're very welcome!
Very informative. Thank you.
My pleasure Brad.
Thank you for this information
My pleasure! What are topics are you interested in learning about? Any specific franchise questions?
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
Great video. Thanks Tariq
My pleasure RC!
After vetting many franchise opportunities and doing a massive amount of research, I am starting a franchise. With that said, Tariq is spot on. Listen to this advice
Appreciate that vote of confidence Nathaniel 👍🏾
How it going
This was very helpful information thank you
You’re welcome
This is the 3rd sign I have had in 24 hrs about something I have wanted to do for years! I am an entrepreneur, author, speaker, actress, etc but I have a masters in Organizational management. I have had jobs that know my value, hired me for it and then resent me for it also. I do NOT want to work for anyone else and I had to be honest about that. I want something for my daughters, I want freedom, I want a business that is already established ( I am not trying to make changes). I need financial freedom and no stress.
Also I just requested your book and I am reading reading READING! I'm creating a binder with all the information and tips and I already have a location in mind
Hi Ty, that is awesome! I believe in you! I sent you an email FYI.
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
Thank you for this video..
My pleasure! I have a really awesome free virtual event coming up. Make sure you register! dreamlifemastery.com/
Thank you so much for this information
My pleasure!
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
Great video. Thank you
You are welcome!
Very informative video, thanks
Glad it was helpful!
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
Great Video!
Thanks!
Thank you 👊🏽
My pleasure
Thanks for the info sir.. 😊👍 💯
My pleasure!
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
Still halfway through, but thanks for sharing.
I recently found an interest in possibly owning a franchise. I just turned 30 and I have had 2 jobs over the last 14 years (Pizza Hut and AT&T) in both companies I started from the frontlines and worked my way into leadership roles. I am now an area retail sales manager of and have gained experience in so much aspects of running a business from sales, marketing, coaching, leading people, operations, hiring/firing etc. I feel that my work ethic, leadership, integrity and passion for learning has helped me tremendously throughout my career. I’m currently in the process of finding ways to gain funding to start a franchise, that I feel is the biggest barrier right now. Once I figure that out I am confident I can grow my selected business.
Awesome, you sound like you would make a great owner. I'm rooting for you!
I am thinking of owning a franchise. It has always been my dream to own my own business and so i thought franchising would be a great step rather than starting up a small business first.
Franchising is definitely a great way to attain your goal of business ownership through a proven system first! Then you can take what you learn and start your own thing!
This is absolutely nice
Thanks
Hi Tariq
Great content always.
Would you like to do video on how to find location for FAST FOOD QSR?
Thanks
Awesome video 🔥
Thanks 🔥
Really enjoyed your video
Glad you enjoyed it!
Quick favor to ask-
I need to interview 50 people that are looking into buying a franchise, or just trying to figure out how to transition from employee to full time entrepreneur.
I’d like to set up a brief call to interview you.
If you are a yes, please send me an email at info@tariqjohnson.com and I’ll reply with the link to book directly on my calendar.
This Guy is a Champion!
Thanks so much man! Looks like you're on a roll watching all the videos. Great work!
I would like to become a pack and ship franchisee, I have never done this before. I am doing my research and I am also reaching out to other franchisees in the area not directly but maybe the next town over maybe I can network with them to understand what I am looking to get into. I 9bviously cannot quit my day job right now but I am willing to put in the time.
I dabbled in leadership by helping a team make a video game and ended up loving the freedom it brought me. I have ADHD and I direly want to set my own hours and not be in constant fear of being fired or having bosses overwork me and wrecking my mental health. Owning a franchise is an option I didn't know existed until recently and it seems to be a great fit, as I'm highly creative but nervous about starting something entirely on my own without any guidance. The issue is that I struggle with organization and prioritizing tasks properly. Are there franchises that can help me figure out a plan and/or organizational system to follow so I'm not stuck working all the details out all by myself? I'm also kind of a terrible salesperson because it feels manipulative and makes me uncomfortable, so would that be an issue?
Hi Lily, thanks for sharing your story. The short answer is yes. You would be an ideal candidate for a franchise.
They provide structure, and systems. You still have to be disciplined enough to execute on those systems.
You can hire sales people, and your role depends on the franchise.
I believe 100% there is a franchise out there that would be perfect for you.
I have a free franchise masterclass that you may find helpful. buyaprofitablefranchise.com/
Good morning Mr Johnson I is subscribed and a close friend of mine owns a couple of franchises. I’ve never owned a business or anything of that nature but I’m very interested in creating wealth that can be passed down through generations. I understand there’s risk and honestly even some fear of it because I’m new just trying to learn things but I want more! I’m doing very well in the industry I’m in as far as income but like I said I want residual income if possible.
Thanks for sharing! If you want to find out more about franchising, you can grab my free ebook -> www.buyaprofitablefranchise.com/o-optin
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
Nice!
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
Stay away from current restaurants and franchise they are nothing but a bunch of scammers. I wish you well with your new company bit stay away from these crooks and preditor who are in the business of ripping you off. Do your own thing. Best wishes.
I’m so happy I found this video. I’m currently 18 in my senior year of highschool and want to become a financial advisor hopefully leading up to owning a franchise. Do you have any tips?
Very Cool Eli! I've been investment licensed for 13 years now- I was a Financial Advisor for many years. Get your intro series exam passed so that you can get into a firm. Serve your clients at the highest level and save and invest as much money as you possibly can, keep your expenses low, and do NOT fall into traps of buying fancy things to impress others.
Franchises typically require liquid assets, and net worth requirements. The more money you make, and then save and invest...the sooner you'll have the assets to buy a franchise. Best of luck to you!
Tariq Johnson thank you that helps more than you could even imagine
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
I'm just a pre-teen who doesn't even have a job yet but still thanks for the advice.
I have a few questions tbh
1 what degrees help the most
2 do you manage the business
3 do you own a certain store or restaurant of the entire business when doing this and how much control over the location would i have?
Hi Tariq, I’m really enjoying your videos! I see that you have recommended using a franchise consultant. Do you recommend working with multiple consultants to access a larger inventory of franchises? I really like my consultant but I’m worried I am missing out on franchises that might be a stronger fit.
Eh, depends. Unfortunately, not all consultants are created equal. Glad you are enjoying the content!
super helpful video and the printer making random noises was hilarious lol.
Out of over 100,000 views , and 3 years later- you are the only person to mention the printer! Lol
I thought it was hilarious too. 👊🏽😆
@@TariqJohnson yeah I have a printer that also seemingly has its only life and hobbies that it randomly wakes up and makes a racket about so I know that reaction first hand 🤣
Thanks for this. I was recently laid off and I’m exploring buying a business or franchise rather than taking another job in a cubicle. A couple hurdles I’m having are: finding businesses that allow at least partial absentee ownership and actual profitability numbers. I don’t necessarily want to “buy a job” as they say.
Hi Chris. Being laid off could be the biggest blessing that's ever happened to you. I'm sure it's not an easy position to be in, so my heart is with you. There are a number of franchises that allow absentee ownership, it's just a matter of finding them. Another tactic is to buy a franchise that requires an active owner, work the business full time for a year...learn it inside and out. Once you do then you can hire a manager and go back to work. You can then earn income off the franchise while earning a full time income in a job with benefits.
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
Wow thanks for giving us this valuable information tariq
@chillintm I was recently laid off and in the exact same spot you were in 3 years ago. It would be so helpful if you could share what you ended up learning and doing.
@@virajganglani6619in the same boat and would also love an update.
Love the content! I am looking to franchise a business, and I am communicating with the company now. There isn’t another store in my area, so I am having difficulty trying to figure out a conservative number on what the franchise would make per month. How do you recommend coming up with that figure - or getting as close as possible, conservatively?
Have you spoken to other franchisees that aren’t in your area? Also have you completed a pro-forma? The conjunction of those two things and local competitive analysis would get you close to an estimate.
thank you for your reply! No sir, I have not completed a pro-forma. I will be speaking with another franchise owner next week, so I am hoping to get some good intel there.
@@TariqJohnson
You definitely need to do a pro-forma. It's a key part.
Quick favor to ask-
I need to interview 50 people that are looking into buying a franchise, or just trying to figure out how to transition from employee to full time entrepreneur.
I’d like to set up a brief call to interview you.
If you are a yes, please send me an email at info@tariqjohnson.com and I’ll reply with the link to book directly on my calendar.
@@TariqJohnson are you still looking for 50 people to interview?
Question
Hi Tariq, great video!
Could you tell me more about your experience in Franchisees losing money after acquiring a franchise, taking in the profits, then in 5 years say: selling said franchise. Thank you
Appreciate it
Hi thanks for the video! What are your thoughts on a start up company with 2 stores that have started franchising ?
Depends on the industry, financial history, brand, and how long those 2 stores have been in business. There will certainly be more risk with an un-established brand. It could also be a ground floor opportunity. You would need to do thorough due diligence before committing!
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
Thanks Tariq for this video its very informative for beginners like me 💯
My question is : what do you think about obtaining a government backed loan ( in Canada) to finance the franchise cost and fees ! I feel like I know the answer but taking my chances!!!
I really want to start my own franchise business and I know I will be successful.
Thanks for all your help,
Sarah
Hey Sara- glad to know you found the video helpful!
If you can secure a loan then go for it! As long as you aware of the risks you are taking and the consequences...I'm generally an advocate of people betting on themselves to create their business and financial future. Hit me up at info@tariqjohnson.com and I can help you.
@@TariqJohnson Will definitely do txs 🙏🏽
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
I’m 20 and want to never have to go back to a day job while I get my digital media degree and real estate invest on repeat 🙏🏽 all of this to support my financial freedom dreams and a family I plan to have in the future in 10 years
Awesome vision, and kudos for thinking about this at 20 years old!! Let's go!
Great content Tariq! Would you advise against becoming a distributor for a franchise ? And if so, is it customary to pay a franchise fee to be a franchise’s distributor only? Appreciate any guidance
Thank you
Dave
Interesting question. What do you mean by distributor?
@@TariqJohnson to distribute a manufacturer products
1.How do you know if an existing franchise is selling? --- 2. Would this be something good to do with inherited money?
You can find businesses for sale at a website like bizbuysell, if it's not listed there you would often need to find out through word of mouth. Inherited money is certainly an option, just make sure you aren't taking a unnecessary risk and being reckless because it wasn't money that you had before.
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
Very informative, I’m going to college this year for a double concentration in finance and analytics and aiming for an MBA of course, any tips
Tips for what specifically? School, business, franchises, money?
@@TariqJohnson tips on franchises or what would be a more efficient way of allocating funds into the right places to grow
I’m 21 and still in college. So let’s say hypothetically, I started working after college and has saved up enough money for liquid assets after a few years. How does one actually start a franchise like where do I go? And do I need to go to school to keep one? Very informative video btw! :)
You just reach out to the franchise company that you are wanting to start through their website. That starts the conversation, and then you go from there.
How did it work out for you, over the last 2 years? @Otakuchan9657
I’m looking to start a franchise business to yes eventually leave my full time job. I have to cash flow rite now n I 2 years away from semi retirement. I’m ready to do my own Family business.
Awesome!
Quick favor to ask-
I need to interview 50 people that are looking into buying a franchise, or just trying to figure out how to transition from employee to full time entrepreneur.
I’d like to set up a brief call to interview you.
If you are down, please send me an email at info@tariqjohnson.com and I’ll reply with the link to book directly on my calendar.
after so many year having different job and business I START LOOKING INTO IT , it was good that Leo send you massage
?
Ask me your Franchise questions below!
Grab my FREE Zero to Profitable Franchise in Less Than 12 Months.
www.tariqjohnson.com/
I also want to franchise so I can help those people living near in that branch location so they can ship them easily.
I wanna leave my kids everything
what franchise did you buy?
Sir, is there any income cap in a franchise for the owner?
Tariq any advice on a home inspection business?
Great content. Any potential franchise owner needs this information. What is your thoughts on Fitness Franchises like Anytime Fitness?
Anytime Fitness is a solid Franchise. The fitness franchise world has A LOT of competition, and a lot of the success will depend on if the owner would be active in the business, or relying on a manager to run it for them. The quicker you can get to break even and then profit with memberships then the more you've got a chance to succeed and thrive. Fitness franchises like most opportunities require a lot of front end work in acquiring members. Hope that helps!
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
can could you make a video on what are the pros and cons in being a financial advisor ?
Nah, I'm sticking to franchises and owning a business. Probably a lot of content out there on that if you google it.
This may be a stupid question.but I am.looking to franchise a buisness(checkers) in a new.lpcation
How much foot work do I need to do to get it running. As far as staffing and setting up a processing system .
Can you use a payroll loan to pay ur employees like in a small business Or will buying a recognized business prevent you from qualifying?
As someone who has no saving, TERRIBLE credit, no idea of the complexity franchise. But someone with an aspiration. A goal. How does one start?
Net worth is 100$ lol the company I seek to franchise has a “initial” start cost of 170k but it depends on many factors so it can go upwards to 250k-300
My biggest question is this: How large is the time commitment in owning a franchise such as a 7/11, Carls Jr., or SubWay?
The time commitment is as much as you decide to put in. You can what is called in the industry as "absentee". That means you're not actively involved in the operations. The consequence is you aren't aware of what is actually happening in the business on a day to day basis (employee issues, customer complaints, theft, etc). Also, The less you do, the more you have to hire people to do and the lower your margins are.
In all of those businesses you mention, 7/11, Carls Jr, Subway, you could be completely absentee at some point- your margins, and customer service could suffer. Oh and 7/11 and Carls Jr require some serious cash to buy one.
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
Me and my Husband are in a good position and are looking into possibly buying a Franchise. Wanting to work for ourselves and build something for our kids to give them a steady life. I am seeing that there is so many different money factors involved. When buying a franchise we are responsible for paying for all construction and equipment and everything thing else?
Hi there- that is correct. You are generally responsible for all of the build out. Email me at info@tariqjohnson if you have more questions.
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
i have faith you’ll help me become a millionaire 🤝 i’m subbed in
Woohoo! Cheers to that.
What do you think of a beauty boutique that specializes in facials? Interested in skoah, please let me know what you think. They have a membership model and also a product line . Please let me know what you think .
Hey Taruna, hit me up at info@tariqjohnson.com , happy to share my thoughts.
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
hello tariq. this is edwin. i live in the dc area. i've been doing my homework. AI franchise opportunities. would it be a good idea?
I filed Bankruptcy a year and a half ago. How long would I have to wait before I try to buy a franchise?
Looking to buy my first franchise at 19
You got this!
My goal is to open a franchise outside the U.S.. I really want to do TopGolf in Erbil, Iraq(Kurdistan region), but I know they don't franchise. I also want to do a fast food franchise there as well. During my travels, I noticed the fast food franchise outside the U.S. are way more successful.
Interesting observation Phillip. Likely 0% chance of Topgolf. They are corporate owned, and probably about $10-$15million to open. Food franchise outside the US - Could be a home run! What kind?
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
How do I choose the right franchise for me? How will I know I will receive a return and that it will be successful?
Hello Tariq,
I would like to know about the fundamentals of franchising.
Startup cost, operating cost, royalty, qualifying criteria, etc.
I hate fast food and restaurant jobs in general, but I hate working for others even more.
But I am 40 years old and I am sick of working for minimal wages.
I am thinking about a possible franchise.
But I kind of need to know the basics, costs, etc. Before I dive into it.
Thanks
There is a lot of basic info available with a simple google search. Way to much to breakdown here. Generally for a decent franchise you need to have at least $50k to your name.
What advice would you give us on coffee franchise? My and i want to have franchise cafe shop in my country. One of the franchisors we are negotiating has no any location in the country that we are planned to open the coffee.
I’d personally rather go with a concept that has already been proven in my country- not a new one. Too speculative for my risk tolerance.
14:23 Can you please give a few examples of what not following the system looks like?
Franchisor says to spend 2.5% on local marketing, but someone doesn't because they are scared to invest the money. So in turn, because they don't follow the marketing systems, they don't generate the sales.
Or...
They feel like they want to start trying to add products or services that aren't apart of the franchise model and get distracted from actually executing on the core services.
Love your information very helpful!
I'm in the middle of negotiation a deal on a pre existing franchises in a stvr. Now I know the short term rentals business and been working in it for past 7 years however it's still nerve raking and hoping I'm making the right choise .
My question is any idea if borrowing from SBA loan would be a good way to go as I cannot give the down payment they are asking. Or is this a mistake 😬
Without knowing the specifics of your situation, and the business you’re looking at, it’s financials etc I can’t answer that with any accuracy.
Most people put 10% down and SBA loan the rest for profitable resales.
Thank you appreciate @@TariqJohnson
Hello what about people from the UK? Can US franchise be purchased by someone in the UK,
What training or education should you have to buy into a franchise?
I want to leave my full time job and open cleaning franchise business and becomes big company can help people for jobs.thanks
You got this!
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
What is your product or your selling point
How do you get in touch with the franchise to get the opportunity to franchise???
Depends on the franchise, but generally they have a website to submit your contact information. What franchise are you looking at?
Hey Tariq I know this video is pretty old but my brother and I were talking about buying out an anytime fitness for sale, I know you talked a little bit in the comments about one already but what is your best advice to us in being active in the franchise and building it into something unique!
Hey Garrett! Thanks for the question- When you say build into something unique...what do you mean?
I know you have to follow the franchise rules, but Im asking what’s your best advice for being active in the business to help it get more traffic
How can we be essentially more active and helpful than other owners to help bring more people through the door!
Best advice to set us apart from the other anytime fitness centers to get more members
Great question! All sorts of stuff. Run ads on social media, post yourself doing exercises and workouts in the ad, community events, sponsor local sports teams, hit the streets and pass out fliers, leave fliers on people’s cars...those are just a few ideas! Hit me up at info@tariqjohnson.com with more questions.
How do you value an existing franchise. I’m considering buying it from the current owner that’s been in business for 16 years.
Zack there are a few different ways to value a business. The most commonly used is a multiple of the net income (profits). An example is 2-4x earnings. So if a business profits $50,000 a year, it might sell for $100-$200k. There a lot of other nuances that affect it.
Tariq is hosting a FREE online event, go register at dreamlifemastery.com/
When starting a new franchise do you have to provide real estate and building plans. And how do you know if there is an existing location available if you don’t want to go through the trouble. Thank you
You buy the franchise first and then find the real estate, and then when you have a lease secured, hire an architect for the plans.
You can ask the franchisor if there are any existing locations for sale. They don't always know. Sometimes the franchisees list them for sale without telling the franchisor.
Hi Tariq! I’m looking into taking over an existing franchise that has not really been super established (only running for a year). The franchisor has not had this situation before so she is going to get back to me on what it will cost. Is there any way to negotiate the money down even though the small amount of customers will still be an advantage for me?
Hi Karlen, Yes and Yes! Always negotiate price. Is the location corporate owned by the Franchisor?
This franchise is being sold by the current franchisee. They have another location nearby as well. We are unsure as to their reasoning for selling. We are just getting started with the research portion and reaching out to others for advice before contacting the seller with questions.
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I want to franchise a restaurant or simply setup my own steak and shake in my area in N.C. can you EXPOUND on what I should do to begin?
I got into detail here. ua-cam.com/video/oD7IIXaHFsg/v-deo.html
I am an educator, things are going south across the nation, therefore I want out. I want something that will put me in the best position to bring in a better income for all the work that I do. I want to be financially stable and love what I do. Is this the wrong reason to pursue?
I'm not familiar with all franchise types/industries, but would you say that there are ones that are more difficult/successful than others?
Rea that is a great question. I think it all varies, and is a matter of personal experience and perspectives. I'll play along and offer some insight. Generally food businesses have lower margins, but you can be potentially be less involved in the day to day operations. We looked into a well known daycare brand, the initial investment to get open would be $700-$800k, but the success rate was very high and if you have a successful school the net income could be significant. BUT...they also required an owner to be on site full time.
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I'm really interested in courting a local company to partner with in opening another location. I currently sell my baked goods from my home kitchen but would like a more consistent business with a store front. This would be a win/win as I've personally been a customer of theirs for years now, love their culture & believe in their company. Their products also very much so compliment my personal business. What are the best questions to ask? What should I expect to ask for? Fee? Startup, etc? they do renown themselves for local community which is an appeal my business would add to that uniqueness. THANK YOU for any/all advice. I'm so nervous lol
Are they a franchise or a mom and pop?
Hi Tariq just been through this video my question is quite personal to my situation. Essentially a store in North America is looking to franchise into the UK. How would it be best to approach this scenario in terms of interoperability. Thanks
Hey Hussein- can you provide more clarity/context on your question?
@@TariqJohnson hi so I found a gap in the UK market for a Canadian brand which is selling one specific item. But the long distance and international difference's are making it hard to assess if it is the right one etc.
Send me an email at info@tariqjohnson.com - I would need to understand more
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What’s usually the profit margin on a restaurant-type franchise such as Pizza Hut, etc? Does it make sense to open a franchise outside a mall (a lot of competition) where operational costs are lower?
Thanks :)
Hey Valter. You can search online and likely find some really detailed info on that, but generally food businesses range from 10-20% profit margin, that's a range for an absentee run business. If you are active in the day to day, managing or saving on labor cost than margin could be significantly higher. I don't understand you're question about outside a mall? There are pizza huts in shopping centers all over the country, I'm not sure there are many in actual malls? As an analogy, you can open a business in the middle of the country where land is dirt cheap- you probably wouldn't get many customers. You've got to balance the high priced rent with the fact you are where people are, which means you have the opportunity to get a lot of customers. You need to have 1. Great marketing - to get them in and 2. Great Service- to keep them coming back.
I am a Pizza Hut franchisee so might be able to help with this one. Not sure about your market but where I am around 10% net margin on a high volume store would be normal. Not sure about restaurants but as for pickup/delivery locations small convenience centres are usually best for these type of businesses. Good proximity for delivery, low competition, easy parking and good rental terms are key.
Great insights Ben! Thanks for offering your experience.
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Great video! Thank you so much for all this information. What are your thoughts on cinnaholic?
Thank you- First I've heard of that brand.
My wife is really interested in buying a Pelican’s Snowball franchise, here in Atlanta. She is fixing her credit right now. Should she wait until her credit is better before she submits an application? How high do you think her credit needs to be?
Credit is only one part, does she meet the financial requirements? Without good credit? How will you fund the business?
I’m opening a franchise. Interested in a multi-unit development deal. I need to raise roughly 250k in capital. What would be an attractive yet fair return for potential investors? I don’t have money myself, but I will be an owner/operator and will take a working salary until initial investors are paid back.
Depends Kenny- how long you plan on holding their capital, what exit strategy you've given them and more. Do research on angel investors. If it's friends or family- very different.
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Currently looking at becoming a State Farm agent. Do you have any input? Of course, I have concerns on the financial side of things or not being profitable.
That's not my area of expertise.
Would you recommend owning a franchise to someone who has no business or financial experience? Also is there any advantage to opening a franchise based on past employment? I've been an electrician for 10 years and have recently decided to cut ties with that and start a new career as an entrepreneur as this has always been my dream for financial independence and having more free time. In my search I've noticed there are a lot of electrical franchises available to invest and and I'm just curious if my past experience would be any benefit seeing as I would be on a completel opposite end of the spectrum when it comes to the day to day operations involved and having no experience in ever running a business. Thanks in advance for any insight! Great video too!
Great questions! The quick answer to all of that is it depends. To elaborate:
1. Most people own/buy a Franchise don't have business or financial experience. You can succeed without either- given you are willing to learn, grow, be coachable, and follow a proven system.
2. There can be an advantage to opening a business based on past industry experience. It can also be a disadvantage if someone is accustomed to doing it "there way" and doesn't follow the proven model or system.
3. Given your background it definitely makes sense to explore those franchise opportunities. You would need to do a thought out analysis on franchise vs your own business. If you need some help fill out my business coaching request, and I can assist www.tariqjohnson.com/consulting
4. Make sure to watch this video I just put out on What it's like owning a Franchise. It'll help provide some answers for you.
ua-cam.com/video/LE2dYcteVn4/v-deo.html
What did you decide to do? Which electrical franchise are you looking at?
I have been looking into the Mr. Electric franchise but have been hesitant to move forward with taking the big leap.
@@sting10gonzo Any reason youre looking at Mr Electric vs Mr Sparky? I have been considering them both for my area as well.
@@RyanParnow no reason in why I'm considering Mr. Electric other than the name sounds better in my opinion. I think I have finally decided to make the jump and become my own boss! Very exciting and nerve racking at the same time but the goal for all of us is free time and financial freedom im sure. Have you decided which franchise you are going with?
Hey Mr.Johnson, may I please get your thoughts of owning a franchise after high school?
If you have the financial resources and believe you have the hustle, and knowledge to be successful - then go for it!
I’d like to open a Dunkin’ what would my net worth have to be roughly to open a new location in a suburbial area just outside of the city
$500k net worth
How did u become a speaker to Tony Robbins and what does it take to become one?
I was introduced to the hiring manager, they rejected me numerous times. I was relentless that I could do it. I didn't take no for an answer. I had to memorize a 15 page script JUST to apply for the position. I did that while working a full time job and staying up until 2am trying to memorize it. I flew out to California on my on dime to go the corporate office to prove myself. It was one of the most mentally challenging processes I've ever gone through to accomplish something.
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Hi sir, what a clear explanation. I really loved it.
I live in india, Chennai. I would like to start a food franchise. Can you please suggest any
Hi Ibrahim, glad you enjoyed the video. I'm not familiar with the options in India, but I found this article that may help. cdacmohali.in/best-food-franchise-in-india/
Thanks for your kind response sir. You are really awesome
☺
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Hi Tariq, I’m trying to buy existing franchise location which opened 2 yrs ago. This Teriyaki company(similar to flame broiler) is small franchise which only has about 7 locations total. I’m trying to buy one of them. Franchise fee is $15,000(payment to franchise owner) and $35,000(payment to location owner). Monthly sale has decreased due to pandemic but recent average monthly sale is about $30,000. Franchise fee is 3% weekly, 1% Advertising Franchise fee(monthly), Rent is about $5,000/month. So, I need at least about $50,000 to change ownership of this this location + additional fees. So many people are saying bad stuffs about franchising, so I’m really not sure if this is worth doing it. Please advise. Thank you🙏🏼
Mike- my apologies for the delayed response. I'd need to understand more about this business and the financials. What do the P&L and Balance sheet look like? The $15k fee sounds like the transfer fee to the franchisor? Are you saying the owner is selling the business for only $35k? 3% weekly is 12% royalties which sounds high to me. Go to my website and submit an inquiry if you want to dive in more.
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hey hi....I got a question,how does the investement in franchise work? how is the profits divided....will it come to pay the main brand owner of the company......or will I b able to all the profits? PLEASE REPLY AND A SHORT VIDEO FOR DIS TOPIC WOULD BE BETTER
Your questions is too general. But if there are multiple people investing in the same business then the profits are divided however you guys agree to divide them. Ideally you have an operating agreement, and documents drafted specifying who invest what, who does what, and who get's WHAT...😀
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Hi, I'm 22 years old and I'm thinking of buying a video game franchise in the future. I love playing video games and have been playing at a very young age. There has always been a specific franchise that I have been a fan of but unfortunately has not been receiving the love the franchise deserves. Although it hasn't done good in years, I would like to purchase it and develop a new game because I believe it has so much potential. How do I get more information about the process I would need to undergo. Thank you for taking time to read this.
Hi there- are you talking about a retail franchise? I'd be cautious about that- as you would be go against the trend. The retail model for video games is dying...in my opinion from what I've observed.
Buying a franchise that resales games, would not offer you the opportunity to create your own game.
Other than those comments- reach out to the franchisor and get more information.
How long do you think is the ROI? I'm thinking of Franchising a juice bar too. There all doing about 600k -800k+ a year. I'm worried that if I need a loan and how long is the license for. Will I even come out neutral or profitable on the end. What protects me as a franchisee? When the contract basically says they can take it away and stuff etc
Phew deep questions there. I can't dive into them in depth on here, but if you want help/coaching - reach out to my team and we'll see if we can help ya. www.tariqjohnson.com/consulting