Guest JCroz91 Posted November 27, 2009 Report Share Posted November 27, 2009 (edited) Being a freshman at OSU im not sure what to major in. Im thinking business managment or marketing. Latly I'v been considering becomming a franchisee and starting my own store of some sort. I worked at subways when i was in HS for a couple years and one of the owners own 4-5 subways and wasnt making bad $ at all. Running the store seems fairly simple. Iv taken business classes in HS as well which i know was the basics but i feel like it wouldnt be very hard to run a small franchise. He did nothing but watch over the store on cameras. Now i know its hard getting the funds to start a franchise and getting it on its feet but how much schooling do you think is adequate to ensure that i could be sucessful in starting a franchise?? How many years does it usually take to start to see a steady profit and what kind of yearly income do i think i would be seeing out of owning a fast food or possibly small restraunt such at max and erma's or O' Charleys? Another posibility would be to possibly start a small used car dealership but thats a lot more pricey in the start though it can be more lucrative in the long run of course. any advise? open for discussion. Edited November 27, 2009 by JCroz91 Quote Link to comment Share on other sites More sharing options...
Mensan Posted November 27, 2009 Report Share Posted November 27, 2009 READ ME Read through all of that and then come back and ask more questions. Quote Link to comment Share on other sites More sharing options...
oh8sti Posted November 27, 2009 Report Share Posted November 27, 2009 I don't want to burst your bubble but it is very expensive to start a single store like that. If I remember correctly it's around 250k, I may be wrong. I'd look it up. I would goto school and get a degree in something. Quote Link to comment Share on other sites More sharing options...
Guest JCroz91 Posted November 27, 2009 Report Share Posted November 27, 2009 oh yeah i figuared that. i would have to get a small business loan of course. im trying to keep my credit perfect right now just incase thats the route i take Quote Link to comment Share on other sites More sharing options...
oh8sti Posted November 27, 2009 Report Share Posted November 27, 2009 I imagine it will take years to see profits as well. So you will be on the hole for years to come. That's a massive commitment for a 20 year old and frankly find it very hard to believe that a bank will give you that money. I may be wrong Quote Link to comment Share on other sites More sharing options...
cptn janks Posted November 27, 2009 Report Share Posted November 27, 2009 He did nothing but watch over the store on cameras. i highly doubt that. Quote Link to comment Share on other sites More sharing options...
BIGGU Posted November 27, 2009 Report Share Posted November 27, 2009 i highly doubt that. +1 theres more shit that he did in the background that you never noticed. Quote Link to comment Share on other sites More sharing options...
Kevin R. Posted November 27, 2009 Report Share Posted November 27, 2009 You sound pretty ignorant thinking your boss just watched the cameras. You need to read up. Quote Link to comment Share on other sites More sharing options...
Jackson1647545504 Posted November 28, 2009 Report Share Posted November 28, 2009 Why do you want to 'buy yourself' a job that puts you in 250K in debt? Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted November 28, 2009 Report Share Posted November 28, 2009 (edited) Being a freshman at OSU im not sure what to major in. Im thinking business managment or marketing. Latly I'v been considering becomming a franchisee and starting my own store of some sort. I worked at subways when i was in HS for a couple years and one of the owners own 4-5 subways and wasnt making bad $ at all. Running the store seems fairly simple. Not coming across to you harshly, but there's nothing about running a franchise like Subway that's easy. I worked for several years designing labor management systems for many different brands and can tell you first hand, the operations of a restaurant are very, very difficult to manage. It's the core of the business. No degree will give you that lesson, nor will simply having worked in a place for a few years. Subways are also not the most profitable stores around. They average less than $600k per unit in revenue per year. Contrast that with a McD's that pulls in $2.2M for the same efforts. Now of course you won't be able to buy into McD's, or Dunkin Donuts but then, don't think one store is going to make you more than $75k take home per year. It won't. Especially with food costs like they are now. Also, remember that Franchises are not any more of a sure thing than any other business. It's simply a model. The operations of that model are up to you. No different than handing me the keys to an Indy car and expecting me to even finish the race. Also, don't confuse your boss, who was likely just an investor, with a true owner operator. There are lot of great investment co's around....I know the group that opened the 16 or so Dunkin Donuts here in Central Ohio. $2M per unit required to open one...and they won't do just a one or two unit deal with an operator. If you don't come with big cash and experience, you won't even get them to call you back. Remember, brands won't sell a franchise they know is destined to fail. Iv taken business classes in HS as well which i know was the basics but i feel like it wouldn't be very hard to run a small franchise. He did nothing but watch over the store on cameras. Now i know its hard getting the funds to start a franchise and getting it on its feet but how much schooling do you think is adequate to ensure that i could be successful in starting a franchise?? for a fash food chain....it's experience. Plain and simple. The turnover rate of an average Arby's chain for the hourly workers is almost 200%. Management is almost 160%. You'll be constantly turning people, training people, trying to manage operations and still run a flawless business in a very difficult economy. You won't even likely qualify for a loan without credible experience. Not in todays market. Banks aren't going to just make a small business loan on a plan to buy into a franchise. You will have to prove you can do it. How many years does it usually take to start to see a steady profit and what kind of yearly income do i think i would be seeing out of owning a fast food or possibly small restraunt such at max and erma's or O' Charleys? You will have 24-36 months to turn a profit or go under trying. It's going to cost you $300-400k to build out a Subway. Even more if you try and go fast casual like O'Charleys. I know them well as I did part of their labor system. Good group, but a tired brand. Going through a refresh project as we speak. Another posibility would be to possibly start a small used car dealership but thats a lot more pricey in the start though it can be more lucrative in the long run of course. any advise? open for discussion. Buy here pay here....talk to Drewhop. He'll explain to you that it isn't easy either. Ironically, I grew up in a family that owned three-points....Olds, Caddy and GMC. Parents sold off as I went into college in 1988. Thankfully...the business isn't easy and in today's world is definitely not an easy thing to do. I remember having that conversation with my dad wondering why we were getting out just as I was coming of age. He said I'd be better off buying a golf course than running the car dealerships. More later. Edited November 28, 2009 by TTQ B4U Quote Link to comment Share on other sites More sharing options...
Berto Posted November 28, 2009 Report Share Posted November 28, 2009 If it was easy everyone would do it. Quote Link to comment Share on other sites More sharing options...
Guest JCroz91 Posted November 28, 2009 Report Share Posted November 28, 2009 very very helpfull. id rather to know the harsh truth than spend all my $ in college getting the wrong degree Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted November 28, 2009 Report Share Posted November 28, 2009 very very helpfull. id rather to know the harsh truth than spend all my $ in college getting the wrong degree it happens though. don't be surprised to not use the degree you do get. I'm that way and honestly don't regret it. Hindsight is 20/20 of course, but it took to age 34 for me to realize it. degree's open doors and well round the individual. combined with good real-world experience and you'll be golden. today it's even more important to have direct experience and relevant skills that are transferable. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted November 28, 2009 Report Share Posted November 28, 2009 delete Quote Link to comment Share on other sites More sharing options...
mmZ06 Posted November 28, 2009 Report Share Posted November 28, 2009 (edited) Hi Jordan. As with any business there are many variables that contribute to the success or failure. All of the brands mentioned in the above posts have stores doing well somewhere. At your age I would definitely recommend getting as much experience as you can. Working at Subway is one thing but there is a lot that goes on behind the scenes as well. Basic operations are fairly easy and even the management of restaurants is not that difficult as long as you have the ability to manage people. Running the back end of the business can be challenging and costly without experience or guidance. Proper entity setup, tax planning, labor laws and other regulations, etc. are a very important part of your business that you will need to understand. Building a new Subway will be very difficult here in central Ohio. You have nearly 120 stores in this development and more than 200 in the market, very saturated. This is good for brand awareness but limits your growth opportunity through new store development. Best bet is to seek out a franchisee looking to sell a store. As I mentioned above, you will find stores of all shapes, sizes, and profits. There are some very good stores out there and there are also a few I wouldn’t even think of touching. An existing store that shows a positive cash flow is typically going to run you more $$$ than a new build. On the positive side, you have a track record. This will work in your favor when seeking financing and also give you a good idea what type of income to expect from the unit. A McDonalds will do more volume than a Subway without a doubt. You are honestly comparing apples and oranges though. Average McDonalds build out is going to be north of 1.2M not including real estate. Subway will be around 175K. Your staff is going to be 5-7 times the typical Subway as well. Cost of good for most QSR brands run 28-30%. A lender will require 20-40% of the project cost as a down payment and ask for an SBA guarantee. My advice, avoid investors and/or partners if possible. Just another person to answer to and if you wanted to do that you could get a 9-5 job. Profits can be seen immediately depending on the situation. Business is a numbers game and there are many ways to structure a deal. As long as you make wise decisions there is no way you would be in the red for 3 years. If you are then I would suggest rethinking the investment. What Subway(s) did you work at? Edited November 28, 2009 by mmZ06 S Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted November 28, 2009 Report Share Posted November 28, 2009 If I remember correctly it's around 250k, I may be wrong. I'd look it up. It highly depends on the franchise, but that's probably a nice round number. Unless you were talking about Subway specifically. I know a guy who opened up his first Jimmy John's this year with plans to open up more. For reference http://www.jimmyjohns.com/franchise/investment.aspx Or a more expensive one. http://www.sonicdrivein.com/business/franchise/own.jsp http://www.aboutmcdonalds.com/mcd/franchising/us_franchising/purchasing_your_franchise/new_restaurants.html As others have said and you'll see from those they all have upfront cost, require you the ability to secure loans, and have liquid capital (cold hard 'cash') for operating cost until you should be able to turn a profit so you don't go under in the first months/years. I would goto school and get a degree in something. This. I was going to ask him where he was going to get his seed money from. Not everyone has a mommy and daddy that can buy them everything. Quote Link to comment Share on other sites More sharing options...
wnaplay1647545503 Posted November 28, 2009 Report Share Posted November 28, 2009 In all fairness to the op, some people see things differently than others. Risk assessment and things of the sort are often put on the backburner when someone has an idea they feel confident in. When I started my first business, I was 17. I was talked to over and over by my parents and advisors to the risk of starting a business. Although I knew in the back of my mind of the risks, I knew 100% without a doubt I would be successful. Over the years I have met with hundreds if not thousands of people who have started their own business and I am talking about multi million dollar small companies as well as large. And in doing so our conversations have at times led us to how in fact they started out. I will be damned if the vast majority of them have all started the same way. They had an idea, knew they would be successful and although were aware of the risks, they pushed forward and threw caution to the wind. At the cost of not listening to people who didnt see what they saw and repeatedly preached the "but what about" over and over. I say this because I dont want the Op to see the downsides of business start up and get the illusion its impossible. Just because others view owning a business or starting one up as an overwhelming if not impossible task, others may not. And thats the difference between someone who owns a business vs someone who works for a business. Taking the experience I have learned over the years, I can think of business after business(in the service industry mind you) I could start overnight and by morning have customers. Impossible some people say but I just see it differently then others. I am not going to sit here and think what you want to do will be easy or a walk in the park but its not above the realm of possibility. With any large scale investment you need to do your research and like others have stated, its going to be difficult especially in todays market. Quote Link to comment Share on other sites More sharing options...
LJ Posted November 28, 2009 Report Share Posted November 28, 2009 Or a more expensive one. http://www.sonicdrivein.com/business/franchise/own.jsp . Sonic is super tough. My dad and Grandpa were going to do 3 and they were told that they couldn't do it without hiring a full time VP of restaurant operations with a resume that Sonic approved. They more than qualified in every other way though. Quote Link to comment Share on other sites More sharing options...
wnaplay1647545503 Posted November 28, 2009 Report Share Posted November 28, 2009 Sonic is super tough. My dad and Grandpa were going to do 3 and they were told that they couldn't do it without hiring a full time VP of restaurant operations with a resume that Sonic approved. They more than qualified in every other way though. This is standard with alot of franchises. Hiring an experienced person in the field. Quote Link to comment Share on other sites More sharing options...
LJ Posted November 28, 2009 Report Share Posted November 28, 2009 This is standard with alot of franchises. Hiring an experienced person in the field. Their terms of what the powers the person had to have really turned them off. Some were like that the VP had to have more say in the budget than any private owners would be ok with. Quote Link to comment Share on other sites More sharing options...
wnaplay1647545503 Posted November 28, 2009 Report Share Posted November 28, 2009 I looked hard into starting a bowling alley years back and they required I think A master bowler or something like that. I thought it strange but so goes it. Quote Link to comment Share on other sites More sharing options...
Radio Flyer1647545514 Posted November 28, 2009 Report Share Posted November 28, 2009 Look into going into business. I started school in business too and I HATED IT! I'm a good salesman and business classes in high school were a breeze. When you get to Fisher you'll come to find it's all asian people joining and starting every club imaginable for their transcript. Quote Link to comment Share on other sites More sharing options...
wnaplay1647545503 Posted November 28, 2009 Report Share Posted November 28, 2009 Look into going into business. I started school in business too and I HATED IT! I'm a good salesman and business classes in high school were a breeze. When you get to Fisher you'll come to find it's all asian people joining and starting every club imaginable for their transcript. Are you a salesman? I would think it hard for someone at 19 to make it being a salesman and have often wondered this. I know people who refuse to even talk to a salesman who looks under 30. Quote Link to comment Share on other sites More sharing options...
oh8sti Posted November 28, 2009 Report Share Posted November 28, 2009 This. I was going to ask him where he was going to get his seed money from. Not everyone has a mommy and daddy that can buy them everything. Come on man! Lol uncalled for!! Quote Link to comment Share on other sites More sharing options...
BoostedAce Posted November 28, 2009 Report Share Posted November 28, 2009 Being a freshman at OSU im not sure what to major in. Im thinking business managment or marketing. Latly I'v been considering becomming a franchisee and starting my own store of some sort. I worked at subways when i was in HS for a couple years and one of the owners own 4-5 subways and wasnt making bad $ at all. Running the store seems fairly simple. Iv taken business classes in HS as well which i know was the basics but i feel like it wouldnt be very hard to run a small franchise. He did nothing but watch over the store on cameras. Now i know its hard getting the funds to start a franchise and getting it on its feet but how much schooling do you think is adequate to ensure that i could be sucessful in starting a franchise?? How many years does it usually take to start to see a steady profit and what kind of yearly income do i think i would be seeing out of owning a fast food or possibly small restraunt such at max and erma's or O' Charleys? Another posibility would be to possibly start a small used car dealership but thats a lot more pricey in the start though it can be more lucrative in the long run of course. any advise? open for discussion. Hey this is off topic, but i think I saw your 3.8 blue mustang 3 hours ageo. licence plate had JCroz and 3 girls where in the car at wendys. Was this your car? Quote Link to comment Share on other sites More sharing options...
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