Franchise Owners...

[dogface]

I am looking to have a discussion with people that have been through the franchising experience, or are currently a franchisee.

In my frustration of being unemployed, I am becoming less and less interested in working for others, and feel the need to control my own destiny.

Without being too specific, I am looking at a Fitness business concept similar to the SNAP, 24 Hour Fitness, Anytime Fitness genre. I am curious as to your individual success' and any issues I should be made aware of as I begin my DD. Of course, I will make contact with those with the specific franchise in mind, but this is a first step of finding out information.

Also, am curious as to alternative ideas of financing as I do not meet the financial requrements at this time. I just don't have the liquid capital available.

Look forward to hearing from some of you, both the good and the bad.

dogface

 

[pwine]

I have a food franchise (moe's southwest grill) and I can give you some help if you want. It is the second time I have purchased a franchise and there are a lot of things you should know before jumping in.

 

[Lemonwedger]

I've owned a franchise and was very successful.

NOW HEAR THIS: You need more capital than you think you need. Most franchises have minimal capital reuirements. DOUBLE IT... If you don't have the money, do yourself a favor and stay away.

Now after saying that. I sold my franchise and I work for myself. If you are really interested in a particular industry do your self a favor and try and do it yourself. Why give someone else your hard earned money. If you have a good service you can build a BRAND.... Franchisors hook you because they say "We've figured out all the mistakes"... Franchisors make there money whether you succeed or fail. When you sign a franchise agreement they get paid not matter what. Oh the economy took a down turn "Fuck You Pay me"... Oh you didnt have a great month in sales "Fuck You Pay Me My Royalty."

Be careful....

CertaPro Painters was my franchise.

 

[layinwood]

Dog, you should also be looking at bizbuysell.com and sites like that. There are some good businesses for sale on there, some a lot and some for not much. The good thing about buying a business is that you're making money from the get go. A lot of them haver partial owner financing so that solves some of your capital issues.

 

[kickserv]

"In my frustration of being unemployed, I am becoming less and less interested in working for others, and feel the need to control my own destiny."

Amen to that dogface:clap:


I am in process of starting my own business, sick of working for others, enough is enoughkurby

Although the whole "getting the start up money" thing is somewhat tough....yeah no shit:142smilie

 

[The Joker]

Franchisors hook you because they say "We've figured out all the mistakes"... Franchisors make there money whether you succeed or fail. When you sign a franchise agreement they get paid not matter what. Oh the economy took a down turn "Fuck You Pay me"... Oh you didnt have a great month in sales "Fuck You Pay Me My Royalty."

Be careful....

CertaPro Painters was my franchise.

So, did Paulie from Goodfellas run your franchise?

 

[The Joker]

I have a client who owns a 24 hour fitness club and pays out the ASS for insurance. Your state law regulates the minimum coverage of insurance required and it is usually very scary.

 

[dogface]

I have a client who owns a 24 hour fitness club and pays out the ASS for insurance. Your state law regulates the minimum coverage of insurance required and it is usually very scary.

Really, have any idea on what that dollar amount is? I have not gotten that far in totalling expenses, as I am awaiting on company info packets, etc. Not to mention I have to have a conversation with each Franchise executive to see if I am a potential fit prior to packets being sent out. Steps, and more steps. I underastand it for the most part.

pwine- Did you have a history in the food industry prior to? I hear the food market is much harder to make a go of it...

kickserv- It would be much easier to work for someone again.... LOL! If I were to find a position, but my last job, I developed a territory from a litltle over $800l in sales to over $6.2ml in less than 3 years, with margin's well over $1ml I didn't see anything that drastic in my pay / but my workload was definitely increased with no extra support. Not complaining, just sayin!!! :moon: Then to be let go, :sadwave: Well, you get the point! I wish you the best in your efforts, care to tell what you got cookin?

layinwood - that site is where I found the particular franchise I am interested in.

lemonwedger - Interesting, I at this time personally do not have the start-up capital required... but "Stay Away" is a difficult one for me to do. I am quite sure I have the skill set, and ability to make this or another franchise fly, as I am sure numerous other people do... but the unfortunate part is $$$. There is a reason they say there are more opportunities for you if you come from a bit of coin. But the other side is making it work, money is only a component.


I appreciate the responses, and look forward to more thoughts.


dogface

 

[dawgball]

Not saying that people don't consider this but "fuck the man, i'm working as my own boss" is not even close to reality.

Accidental entrepreneurship can lead to a miserable life if you're not fully mentally prepared for the trials you are getting ready to go through.

As for franchising advice: be very selective and don't make a decision based upon fitting into your financial situation. cheap franchises are "usually" that way for a reason.

 

[dogface]

Thanks dawgball for the thoughts.

Inherently I never minded working for someone, but I am a pretty independent person over the last few years, and I need the challenge.

Working for someone is not my defining moment of "Screw the man" type philosophy more so a one derived from putting my efforts in something that I can toally immerse myself in. I am tired of not sleeping, busting my balls, for a nice paycheck, when I can have the same stress, but reap more of the rewads as an owner.

Yes, you can absolutely fail... but I can absolutely lose my job unexpectedly as well. In one scenario, I will have a larger amount of time to be prepared, and can verify that everyting I specifically do will be accounted for by my own standards, and my own income.

I fully expected this to be more difficult, but I have managed a mutli-million dollar retail store years ago prior to getting into education... so I feel I have a grasp of that as well in the franchises that I am lookin at, so that fits me. It just comes down to finding the right fit, getting approved and finding the cash, and making the jump. All of which are in the exporation stage. There is never a better time to explore than when I have the time right now!


dogface

 

[kickserv]

dawgball.......you are correct, if you have the philosophy that "all your problems will go away", then you are in for a shock.

BUT


I (in sales) myself am sick of not being able to help clients because something is completely out of my control. And worse yet, having to say "I'm sorry" to a client and worse getting yelled at for something that has nothing to do with me.


Bottom line, I want to be in charge, if I fuck up, it is my fault. If I can't help a client out, it is because of me. Oh and sick of working under people that are complete idiots.

So, ummmm, now you can see why I loved dogface's quote so much:SIB


Also be nice doing something I want to do, and actually enjoying what I do. Not to say that the only way to be happy is to work for yourself, but screw it, I love to gamble and will be starting my own business, and that is a gamble:scared . If it fails it is on me. Not because some dumb fuck CEO decides it is a good idea to eliminate customer service:fingerc:


Oh and dogface does it again with the quote of the month:

There is a reason they say there are more opportunities for you if you come from a bit of coin. But the other side is making it work, money is only a component.

So true...so so true.


Although I am not alone, the number one toughest thing to do is getting the funds. Annoying actually, if you have lots of money, no problem getting loans, credit, whatever. Banks throw money at ya. But kind of a misnomer if you have lots of cash you have no need for a loan:shrug: But as said, not complaining I am not alone.


On the plus side I do have people interested in my venture, sadly they are not loaded:142smilie


and ummm...."fuck the man":142smilie

 

[kickserv]

dogface.....got :142lmao: any money for me?

 

[dawgball]

How many investor pitches have you made to people with the funds? Do you have a presentation (SHORT) that illustrates past case studies of people being successful with a particular franchise complete with a payback plan.

Coming by seed money for a great potential/well thought out plan is not as tough as people say it is.

BUT it is the first roadblock. If this is what keeps someone from starting their own business, then there were going to be other roadblocks that would have stopped you.

(call this tough love motivation, guys. if you feel this is what you want to do, i am all about encouraging. if my words discourage someone, then they weren't made to be an entrepreneur in the first place- good luck)

 

[Lemonwedger]

So, did Paulie from Goodfellas run your franchise?

HA HA HA I love that movie....

But it is so true

 

[MadJack]

dogface, i looked around about 4 years ago, seriously thinking about a franchise and i found about 2, maybe 3, pretty active forums discussing everything you could imagine about franchises.

they pretty much talked me out of it but they have a lot of good reading in there. i can't find the links right now but maybe try a google for franchise forums and you'll find them.

good luck.

i've been writing my own paycheck my whole working life except for 3 years in between opportunities back in the early 80's.

you'll find yourself working many more hours than if you worked for someone else but since it *YOUR* business you won't even notice the extra hours because you actually want to work and succeed.

 

[dogface]

you'll find yourself working many more hours than if you worked for someone else but since it *YOUR* business you won't even notice the extra hours because you actually want to work and succeed.

Exactly! You then do it because it is a passion, I already tried one of my passions, it is still up and became a small time hobby... so I am ok with that.

But, I don't mind the hours, the work, and the other freedoms that come with it, time not being one of them. (I understand, but when it is your baby, it is taken care of differently regardless of what anyone says.. simply because you are the last source for every answer and action. I like that and trust that!

dawgball, no discouragement... heck we need opposite points every time. If you surround yourself with "yes" people all the time, you get a false sense of reality. So keep the thoughts coming!

I am in the research stage, a lot of time and thoughts are stil in front of me. I will nto be able to rush this... but it is in the forefront of my thoughts right now, and research.


Jacl, I will google, and if you do come across the links again, I would appreciate it!!


dogface

 

[dogface]

dogface.....got :142lmao: any money for me?

I loan you, and then you loan me back??? :shrug: :SIB :0corn

 

[dogface]

Had a great first call with the VP of Finance with the prospective franchise. Next up is a call next week with the PResident and Founder, along with a little Webex presentation of their proforma etc.

Still, financing will be the issue taking the online SBA course, and then gatheirng more facts and information...

There is a $25k franchise fee, and then royaly fees are $395 a month. Not sure if that is oeverly high, right on, or extravagant...

dogface

 

[dogface]

Anyone ever go through the SBA to secure the loan? Like this one...

http://www.sba.gov/services/financialassistance/sbaloantopics/7a/index.html

 

[pwine]

I have been in the food industry for a long time and after my first franchise thought I had retired from food but this oppertunity came along, it has been a struggle but we are now 1 year in and we have been getting busier every month.
You can shoot me an email with any questions you have from finance to franchise questions as I have been through it all.