How Much $ do Franchises Actually Make? Food, Cleaning, Senior Care & More
How much do franchises actually make, and why is this information so difficult to find? We look at 5 of the biggest names in food and compare with popular industries like beauty, cleaning, senior care, staffing and more. We'll also explore franchises that can make as much or more as some of the big name food franchises, for an investment that is 10X less.
According to a Franchise Business Review report, 51.5 percent of food franchises earn profits of less than $50,000 a year; only about 7 percent of food franchises have profits over $250,000. The average profit for all restaurants in the report was $82,033. You can see a very small amount of food franchises earn decent money and many owners are struggling or have bought themselves a job. Also keep in mind, if you are looking at a very established big name franchise, you get the leftovers in terms of territory. In most cases the owners making the most money are the locations that opened up long ago and received the best territories. And this is an argument we often hear, someone knows someone who owns 10 Dunkin Donuts and they did well, yes, but they bought them 20 years ago. There is 20 years worth of competition that has built up since that time.
We look at both gross and net revenues today - For our aspiring entrepreneurs annual gross revenue - is the total amount of money that comes in to your store for all goods sold. Net income is how much money is left after you pay your rent, your payroll, your royalties, insurance and everything else. Net is really the important number who cares if you earn 10 million a year if your expenses are 11 million? There are other important numbers like discretionary income and EBITDA (earnings before interest taxes depreciation and amortization) we'll cover those in a future video, today we'll keep it simple.
The Highest grossing food franchise on the QSR50 is Chick Fil A. An average Chick-fil-A generates 4.16 million dollars annually and your investment is only $10,000. BUT - Chick-fil-a has a very different franchise model than other franchises, owners do not receive a traditional revenue split, or even ownership of the store. You'll earn a solid 6 figures, have limited risk, be part of a solid organization with traditional values but you do not own the store or gain any equity. It is also very difficult to get a restaurant Chick-fil-A receives 10's of thousands of applications every year and typically opens between 80-100 restaurants.
Buying a McDonald's will cost $1,263,000 to $2,235,000 not including your real estate. many people think these big numbers includes real estate they do not. We'll cover what the expenses are involved in start a food franchise in a future video. The single highest earning franchise in the entire McDonald's system in 2019 that was open for at least one year grossed $12,457,000, the lowest location generated $557,000. Average system-wide gross revenues for stores open more than 1 year are $2,815,000. How much does the owner keep of that? Keep in mind your expenses, employees, rent, insurance, royalties, food costs all add up. Also your location has a huge impact on profits as rents in certain cities are very, very high, as are staffing costs in some states. If you are in a high traffic area with low rents and payroll that is the ideal scenario, but it can be hard to find good territories. Keep in mind that McDonald's franchises can and do lose money, some can net half a million dollars or more. General consensus is that a reasonable average net expectation for a McDonald's is around $150k per year.
Dunkin Donuts financials breaks down earnings throughout the country so art the high end if you have a drive through freestanding building in the Northeast you'll average 1,397,936.00 and at the low end a freestanding restaurant with no drive thru in the west only $974,874.00.
Senior care franchises are a massive growth industry right now, 10,000 boomers turning 65 every day and that trend will continue for many years. Not all franchises in this sector make millions but some do - up to 1.5 million. So you can potentially generate the same revenue as a Taco bell Franchise, 1.6 million per year, with an much lower investment - a Taco Bell franchise will cost about 1.6 million to open, a senior care franchise is around 100-150K. We also have a senior care franchise in our portfolio with a territory that generates an incredible 30 million dollars a year. Note that is almost 3 times higher than the highest earning McDonalds which is a 2.6 million dollar investment.
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As a former 7 Eleven franchisee this video is 100% accurate. Only having one store is generally a good way to buy yourself a 24/7 job. Don't do it!
@ziggyc4474
2 жыл бұрын
So what buy more ?
@yevgeniyfureyster3502
2 жыл бұрын
How much is seven eleven franchise cost?
@infowazz
2 жыл бұрын
I had a little vending machine business and even that was an energy sucker.
@kendallevans4079
Жыл бұрын
As a child, my parents were friends with a couple that had a 7-11 store. Seems like they were always in their 7-11 shirts and even when they would come over for dinner they would call the store maybe twice during the evening to make sure all was OK.
@philipmullins5185
Жыл бұрын
@@yevgeniyfureyster3502 The cost would depend on location and turnover , every store would be different .
Spare yourself the headache. Purchase their stock and let it grow and live off the dividends in retirement***
This is the best 16 minutes I've spent watching KZread videos.
@BuddyLee23
2 ай бұрын
What’ja buy? (or avoid buying??)
I’m a subcontractor in construction and keep asking my accountant, in what other business could I invest my money, since he handles the payroll to most businesses in town, his answer was: keep doing what you’re doing or start a church 😂
@HN-db5cn
3 жыл бұрын
Lol he is right churches don't pay any taxes, non no property taxes either. I know a pastor that is my customer. He bought 17 acres land, built his home on it, and use the rest of the land as a get together space for church gathering, but they only gather there maybe once a year, because his church is not there, it's 45 minutes away.
@TradingOptionswMndr
2 жыл бұрын
@@HN-db5cn day cares don't pay taxes either
@DWilliam1
2 жыл бұрын
That church comment is spot on. No taxes.
@DWilliam1
2 жыл бұрын
@@TradingOptionswMndr Day Care is super regulated and things can go wrong. Your dealing with little kids, parents and money often from the government. Stick with churches.
@JT-fv6ih
2 жыл бұрын
🤣
As an accountant and somone looking into have their business in the future. your videos are gold. love your videos and love your business.
@7al00m
4 жыл бұрын
accounting firms make huge bank
I own a national pizza franchise. Just one location. Doing $18k to $20k per week in sales. Store is paid off. I make around $250k per year but I don't have a general manager. I run the store myself along with 2 other assistant managers. This year since the corona shut down sales jumped dramatically. We were up %100 over last year for several months. I'm probably gonna be well over $300k this year. Sales are starting to level back out now though. Still up around 40% over last year. BTW, Looking to sell the store soon. Just bought a beach property in FL and plan to sell everything and move there in the next year or two.
@method341
2 жыл бұрын
If you sold the franchise how much do you think you would get for it? How many staff do you have in total?
@loco036
2 жыл бұрын
Hello, I was wondering if I could contact you to ask you a few questions. Thanks!
@rollotomassi6374
2 жыл бұрын
Three times earnings….where is your location?…
@larissamoussoume9707
2 жыл бұрын
Hello, can I contact you for more information on which pizza franchise that is and how to get started?
@alexanderlemos6701
Жыл бұрын
Just came across your comment. Would you be open to field some questions from a beginner?
I managed fast food restaurants for years, back in the late 70's and early 80's. I managed Taco Bells, Long John Silvers and Burger Kings. I still say the key to high volume is friendly customer service and quality of product. Most places have employees who could care less and their quality, like hot food, is almost non existent. Chick Fil A does so well because their restaurants are clean, employees are friendly and their food is hot. It's NOT rocket science! I would love to take over a poor performing restaurant and turn it around.
@sportsMike87
2 жыл бұрын
Chick file a pays their employees better than most fast food places too
@marla79
2 жыл бұрын
@@sportsMike87 KEY! They'll give what you give them at best and at worst they'll leave.
@JacobPAus
2 жыл бұрын
Loved that
@lisabarnes4197
Жыл бұрын
Ok let’s do it !
@scotts1356
Жыл бұрын
@@lisabarnes4197 Ok, I'm on board!
I wish I had more time to watch more of these. They are incredibly done one of the best videos on the internet as far as I'm concerned. I spent 40 years working in the shipping industry, and I am so thankful that I didn't try to do a lot of the things that are warned about in these videos. These are all game changers if I was young and going to do this I'd be knocking on your door in a heartbeat. I am actually very sad that when I need expertise like this another Fields I can never find it. Keep up the incredible work thank you very much. I obviously can't say enough good things about what you do.
@FranchiseCityOnline
4 жыл бұрын
Appreciate the kind words thanks for the support!
I was skeptical about watching this. And it actually took coming up 3 times before i clicked on it. I assumed it would be just a nonstop sales video pushing your product. I was very wrong. Truly exceptional information and valuable. By the end of this video I was actually thinking about opening a franchise using your service one day. Thank you for being the total opposite of what everyone else on YT does. Wishing you continued and constant success! -JBT
@FranchiseCityOnline
4 жыл бұрын
Thanks for the kind words! we appreciate the feedback.
@rognogify
2 жыл бұрын
I was the same. Very informative though!
Bob, when you said the average net income for all food franchises is only $82,033, I didn't need to hear anymore. I stopped the video as well as entertaining the idea of owning a fast-food franchise. Thank you so much for your insight!
@tomdalton4293
2 жыл бұрын
My brother makes that much repairing transmissions!
@nattydreadlocks1973
2 жыл бұрын
@@tomdalton4293 Yeah... but if you have three restaurants.💰💰💰
@kenthhamner2641
2 жыл бұрын
@@nattydreadlocks1973 it's also 3x the investment. People are so brain washed these days. All the bull💩 myths being spouted by leftists!
@arnoldpawikan8186
2 жыл бұрын
Its not that bad at all, better than nothing.
@nattydreadlocks1973
2 жыл бұрын
@@kenthhamner2641 As long as you are profitable, who cares that it is 3x the investment? Banks will gladly lend you the money for the second and third stores. Also, it way easier to sell a franchise of three stores as opposed to a franchise of one.
As someone that worked for Wendy’s for 30 years, most of that as a franchise field consultant, I agree with much of what you say. It’s good factual information overall. Fact is, franchise stores are more profitable than company owned. The Company always scratched their heads trying to understand why. The answer is simple. Franchisees as a whole operate better and eliminate the Corporate BS and policies that takes up managers time instead of focusing 100% on QSC. To make big money in the QSR industry, you have to play the long game. Over time you pay off the real estate and keep it when you sell. Also, there is BIG money in soft drink syrup “marketing rebates” from Woke-a-Cola, Pepsi, Dr Pepper. If you’re a multi-unit owner, that is BIG money that doesn’t show on the store level P&L. I have friends and/or know of franchisees that have sold their stores after 20 years, netted millions and have a huge real estate income stream in retirement. And yes, along the way, they made a very very good living because they ran great operations.
@chrissylvester2336
10 ай бұрын
Let me find out. Honestly
@chrissylvester2336
10 ай бұрын
Why you listening to a franchise owner. You're hearing it from a guy that possibly inherited
@chrissylvester2336
10 ай бұрын
He does not know his number. Dunkin donuts makes more money than McDonald's. If not they make the same. He needs to be removed. He is fake honest. And I am a owner of both. Google, this dude is a lie
@chrissylvester2336
10 ай бұрын
I'm not a owner, I m sorry sorry the fact is I own a Dunkin donuts But he 🎉🎉is silly . Where is your ice machine cream.
@chrissylvester2336
10 ай бұрын
Busy but are machines always work😊
In my opinion with Chick-fil-A you’re not actually a franchise owner you’re essentially just Buying a general manager job for $10,000
@jimstand
Жыл бұрын
I don't care about opinions, what are the facts?
@eastbaykidd8574
Жыл бұрын
@@jimstand Based in the Chick-fil-A reviews on this channel, Mike's comment seems to be a realistic assessment, given that you really have no equity in the store in the long run.
I know the senior care industry extremely well. I’ve been seeing an increase in unaware entrepreneurs entering this market and it’s a disaster. I highly recommend working in this industry before opening a senior care franchise. It is MUCH harder than unknowing entrepreneurs realize. Yes, it is less expensive to get a franchise and has high revenue potential, but be prepared to not have a personal life for the first 5 years or more, unless you plan on paying staff to handle the business, which is also very risky. Additionally, there is a lot of very competent competition that will eat your lunch if you don’t know this business well. I hope this helps!
@FranchiseCityOnline
2 жыл бұрын
Very true! One of the reasons we suggest buyers call us as we spend considerable time determining their operational preferences and abilities and aligning that with an appropriate brand. There are also 100% passive senior care franchises available with zero involvement if that what people are looking for. Thanks for the comment!
My wife is a GM for a Wendy’s and used to see the pnl for the old owner. He averaged $1000/week each store but with 9 stores made him $450-500k/year.
@kylesummers2462
4 жыл бұрын
dennis do way too much work? I wouldn’t think so if he said his wife was the GM. Meaning the owner wasn’t really there for the day to day. Seems pretty decent to have that plus his regular income from work (If he worked)
@SaveWesternCivilisation
4 жыл бұрын
@@dennisfinesse6653 I know BK franchise owners in similar situations, the area manager runs the show, the store managers run each store, owners will usually only visit each store once a week for an hour or two, just to keep an eye on things. It's largely passive income.
@TheKingplayboy3
4 жыл бұрын
@@kylesummers2462 for that price range real estate rentals commercial or residential pay more then that.
@anthonyrb20
4 жыл бұрын
@@dennisfinesse6653 How much less work do you expect to do to bring in that very high amount of annual income?
@allenz7688
4 жыл бұрын
Survivorship bias.
Thank you for sharing some valuable information that worth gold. You really covered a lot and just made more of understanding of the differences.
@FranchiseCityOnline
4 жыл бұрын
Thanks Hassan!
Franchise City, Thank you for Sharing your Great Body of Knowledge, of getting, our hands, on purchasing our own Franchise., 👏👏👏🔥🔥🔥💯👍
How is all this wisdom/knowledge/facts/information/insight/honesty available for free? Damn. Thank you. Subscribed with a quickness.
@stephenconnell
3 жыл бұрын
its not . The video is an advertorial for Franchise city's expertise so you spend money with them. Nothing is free.
The real money is investing in a new and amazing brand of your own. People love and support fresh new ideas and if marketed with super good food and efficiency you have a win!
@infowazz
2 жыл бұрын
I think pizza is a big money maker if you make good pies and in a good location. I grew up in the Buffalo area and we have some great pizza (not the best of course). I worked at a pizza place that was killer but the management stole money and the owner wasn't around that much. Anything besides pizza or wings was not good enough. But the pizza was magical. Many years later the competition is still there and making huge money!!!! I now live in Pennsylvania and the local pizza leaves a lot to be desired. I just buy their dough and make my own at home. So even though I could make some decent money do i want to make pizza all day long?
@lilyhuang7238
2 жыл бұрын
on point, why pay huge franchise fee.
Great channel with lot of free information and it also inspires potential business owners
This video was very informative. I am glad I did not fast forward I literally sat thru the entire video. Nice job
@FranchiseCityOnline
4 жыл бұрын
Thank you!
Thank you! I AM a Brazilian with a store in Brazil and another in Paraguay and your vídeos are a light for what i AM looking for the Future. It gives me a benchmarking and a direction. Thank you!
@FranchiseCityOnline
4 жыл бұрын
Thank you! I would caution that our videos are speaking to USA markets and may or may not apply to Brazil. I would hate to see anyone make a bad decision based on erroneous data :-)
@ricnyc2759
4 жыл бұрын
Open an Evangelical church: the service is the promise of another life in Paradise (and nobody ever came back to complain that it wasn't true). You'll pay no taxes. Consider that.
@johnnytuttodessa7324
3 жыл бұрын
Im interested in opening a Brazilian chicks franchise here if you could supply the product.
I really love the honesty you bring to the franchise space
Pretty neat, First view and first like great video guys!
@FranchiseCityOnline
4 жыл бұрын
Thank you!
As a huge KFC fan would love to know more details about a franchise costs/yearly numbers. Very interesting information, I really thought those fast food places were making tremendously big profits but you've really cleared the misconception about the real numbers. So food its a lot more costly to get off the ground than other areas of business. Great and very appreciated video highlighting the myths about businesses. Thanks!
I need to rethink my future Thanks for Sharing
Wow, this video is awesome. I really appreciate you taking the time to put this together.
@FranchiseCityOnline
4 жыл бұрын
Thanks for watching!
Wow. The algorithm finally sent me a good quality video. Well done.
This is solid and accurate information! The only thing that id like the viewers to consider is. The yearly income, no matter how great or small is "consistent"! So that's the upside to investing in name brand locations!
@FranchiseCityOnline
4 жыл бұрын
Very true! Consistency and predictability is one of the factors we ask clients to rank on our business goals sheet. For some investors senior care or staffing is a terrible choice, food the perfect choice. Many variables to consider. Thanks for the comment!
Amazing! Never thought I'd be finish watching this video!
This was an exceptional video. I’m glad to see your posting on a regular basis. Your a KZread rising star. ⭐️ #WallStreetBravado
WOW!!! Just stumbled on this video, so informative. Wished I had this info when I opened my restaurant. I'll be watching for more advice. THANK YOU!!!
@FranchiseCityOnline
4 жыл бұрын
We appreciate the feedback! Thanks for visiting.
@danjenkins2064
4 жыл бұрын
I said the same thing. I wish I had seen this years ago before I bought my franchised restaurant. The industry is very secretive and it’s hard to get straight forward information.
@alexkace6620
4 жыл бұрын
Dan Jenkins go to google.
@alexkace6620
4 жыл бұрын
Tube Tube I hope u didn’t pay for your equipment.... you can get free gym equipment and a free lease. Rent abatement.
@themessiahsreturn8889
4 жыл бұрын
@@danjenkins2064 honestly even though you saw the video it still doesnt convince you until you test the waters..i run a small.coffee shop..not.easy but i am.glad i never got into a franchise..iv met a few franchise owners and it qas.really.tough on them.they were looking for.small businesses and stay away from franchises
Pretty awesome and helpful video. Thank you!
Im offering street pharmacy franchise. Must be willing to travel to Mexico for your franchise orientation
@abueyad371
4 жыл бұрын
Lol I just get a kick out of the channel liking this comment lol
@pernellgarrison4918
4 жыл бұрын
Im Interested
@TheFutureEvents
4 жыл бұрын
😂
@bige1106
4 жыл бұрын
@Blues is that an AR15 or AR14? Should ask Joe Biden maybe he knows?
@adolfosky
4 жыл бұрын
The franchise is located in the US or Mexico?
Just randomly found this channel love it
Very good video. I own a franchise business and Franchise City was who indicated the right person for help me in the process! Happy customer.
@FranchiseCityOnline
4 жыл бұрын
Hey Gilberto! Thanks for the positive feedback. I'll let Jerry know :-) And congratulations on the new business!
very good information and very deep info. watched your first video and love it.
If you never want to take a vacation ever again, and are willing to work seven days a week, buy a franchise.
@TheKingplayboy3
4 жыл бұрын
this sounds correct
@moviesjean23
4 жыл бұрын
What are you talking about I’ve never seen or met my local McDonald’s or Burger King owner and yet their restaurant are open everyday
@yankkesrule
4 жыл бұрын
The key is to get management that you can trust to run the store when you’re not around. (Easier said than done)
@BB_deez
4 жыл бұрын
A friend of mine growing up, his father owned 3 burger kings. And his mother (in his mother’s name, but father managed them) owned 2 Taco Bell’s and 3 pizza huts (one was a combined store). They were filthy rich, and they went away basically every other weekend. And had a beach house in Marthas Vineyard that they lived at the entire summer when school was out. Own one franchise, you’ll prob work your ass off and never stop. Build up to a handful, and you’ll never work again....
@FM4AMGV
4 жыл бұрын
@@moviesjean23 that's why most of them are a total shit show
Great video. I love the breakdown
Thank for for adding the transcript in the video description!
@FranchiseCityOnline
3 жыл бұрын
Thanks for watching! Sorry if the text gets cut off on some videos, KZread caps it at 5,000 characters.
We had a small argument over a year ago and I did take your advice in the end on amazon trucking business. Margins were not good and the policy’s as well. So, thank you. You were right.
@bkayganich
2 жыл бұрын
You would of been better off getting registered under the FMCSA along with your DOT number, operating authority, and became broker, or freight forwarder.
Tons of Subway stores closing.
@jaysage976
4 жыл бұрын
Because you can open one and I can open one right across the street with no company restriction. Too Many in one and weird areas.
@Eugenepanels
4 жыл бұрын
Full proof the company is ran by a idiot
@matheusrodrigues6923
4 жыл бұрын
Same in Brazil.
@brockdaniel2458
4 жыл бұрын
Blah 🤮 Same old Nasty sandwiches all the time. 1 word: Boring
@VivaLaGolf42
4 жыл бұрын
A friend of owner a bunch of subways and has slowly been selling them. They don’t make much anymore. And I think the market offers so many other “healthy” fast food options. Subway never really evolved with the market and trends.
The other factor you have to remember is that most chains make you re-invest into a renovation every 3-6 years. It could cost you 200k, so if you are earning 100k per year out of your business you will have to also set side 25% of that for renos.
@fivebooks8498
3 жыл бұрын
Correct, but my remodels haven't costed me that much. So far I've only been required to remodel my customer area about every 7 years and it has costed me between $7500 and $10k each time. However one year every store in the country was required to install a new point of sale computer system and that costed me $14k.
@NoName-vy8vu
Жыл бұрын
@@fivebooks8498 What brand do you run?
WOW! this is very enlightening. I used to think fast food businesses were the best form of franchise.
@FranchiseCityOnline
2 жыл бұрын
Thank you for watching!
My mom's friend's son has a wife who worked at a Tim Hortons in the Buffalo area. She saw an opportunity to partner with the manager and buy the establishment. They put some money together and became the new owners and immediately got to work. They got rid of bad staff and hired older folks that were much more trustworthy and not afraid to work. Over time they saw immediate improvements and created a nice workflow. They reinvested the money in another location that was having some issues and got it back to where it should be. Now they own 10 locations! A couple are really small kiosks in the airport. Now that is the American dream!!! They started off as hourly employees and are now franchise partners. Covid hit them really hard tho. They aren't getting the commuter traffic like they used to but that will pick back up eventually. I think they weathered the storm. We just need let the covvid psyop implode. The whole plan is to get us injected and connected to vaxx passports but that's another subject.
@dapooramericanhomesteadfar7192
Жыл бұрын
When I used to be a manager. I love hiring elderly. They are grown up and mature. They have been through it all. They love their job and are happy. There's nothing better than coming to work and your employees are happy.
Excellent ! keep it up
Glad u posted this video
Excellent info. Thank you for posting.
@FranchiseCityOnline
4 жыл бұрын
Thanks for the visit!
Great information as usual for aspiring franchise owners. The restaurant business is so saturated that I wouldn't suggest anyone get into it unless they are at least second generation restauranteurs and grew up in the business. It's just too much work for too little money with too much competition.
@FranchiseCityOnline
4 жыл бұрын
Thank you for the comment!
@fivebooks8498
3 жыл бұрын
I agree. I was a restaurant manager for many years before I bought a franchise unit in the company I was working for. I've been successful because of my prior experience in the business. I've seen so many people with zero experience buy stores and just go through the simple 6 week training course corporate puts them through. They don't have a chance. This business will chew up any inexperienced operator. So many have lost their investment and folded. These are stores that I know I could manage and make profitable but the amateur just walking on the scene can't do it no matter how bad they want to. If you have money and want to buy a franchise but you have no experience in that business, you should find an excellent manager already working in that business and partner with them. Let them buy into 25% ownership or whatever split works for you guys and let them run the majority of operations while you learn what the hell you're doing. Learning won't take months. It will take at least a year and probably more like two before you can handle things like a pro.
hope he make more of such vids explaining income of similar franchises like Jimmy John's, Wendy's, popeyes, taco bell and panera
Going over the definitions for accounting terms in another video thank you! I “thought” I was going to earn a degree in business administration. Accounting gave me a migraine so bad I thought It would lead to a aneurysm. 😂 It’s a foreign language to me. Thanks for the people who do have the skill for this very important part of running a business.
@julianakennedycpa9570
4 жыл бұрын
Did you get the help you needed for the accounting terminologies? I am a cpa and yes I love numbers and want to make it fun for everyone 😁😁😁
@fivebooks8498
3 жыл бұрын
After I bought a national franchise I started showing up to the meetings and they spoke a different language. I had to learn all their terms. I understood all the concepts but they called everything by a different name or 2-3 letter abbreviations.
This is great value. Thank you for sharing. Subscribed.👍👍👍👍
@FranchiseCityOnline
2 жыл бұрын
Thanks for the sub!
Great content!
Thanks, Great information (from someone who learned the hard way!)
@FranchiseCityOnline
3 жыл бұрын
Thanks for visiting!
If i have over million dollars I'll never get into service or food industry. I'll go into manufacturing
This guy is good! He knows his stuff
Another great program thank you very much
@FranchiseCityOnline
4 жыл бұрын
Thanks for visiting!
Great info! I have alot to research. Thanks!
@FranchiseCityOnline
3 жыл бұрын
Thanks for visiting!
I’m really glad I found this channel
@FranchiseCityOnline
3 жыл бұрын
Thanks for watching!
I have no interest in owning a franchise, but this channel is so informative and interesting.
It is very important to consider franchise fees and royalties! I recall a lot of Dunkin Donuts franchises in Kansas and Colorado pulled the plug in the 90s and became independents. Perhaps they looked at the franchise fees and decided that once you know how to make donuts and can find other sources for ingredients through Sysco, US Foods, etc., what you were getting in return for the fees wasn’t worth the cost, e.g. national advertising wasn’t bringing in as many customers as promised, or coupons were too plentiful and cutting into gross. (Around 2004, all the DDs in Portland, OR closed, and many reopened as a local chain, but that might have been more of an issue with corporate ceding the Pacific NW to Starbucks, figuring it was too much to take on the coffee giant in their own backyard.)
Great Channel! 5/5 Stars!
i missed this channel , alot pls do more cricital reviews and why u wouldnt invest in a franchise
thanks for enlightening
Excited about a milk tea franchise I just bought. I believe I got the best location for starters. High traffic, low rent, check! Love from the Philippines! 💖
@arlenwiley4287
4 жыл бұрын
Fritzie Mae Millana Agor nice you bought this franchise in the Philippines?
@fritziemaemillanaagor
4 жыл бұрын
@@arlenwiley4287 Yes. 😊
@prashanttttttt
4 жыл бұрын
IF you dont mind me asking how much was the price to purchase it and how much is the monthly profit
@JJason406
4 жыл бұрын
How much you making? I thought about buying into a franchise in the philippines. Maybe pizza or coffee shop
Good video thank u my friend
What a video, thanks mate
@FranchiseCityOnline
2 жыл бұрын
Thanks for watching!
Thanks for this vid. Very informative.
@FranchiseCityOnline
2 жыл бұрын
Thanks for watching!
Great video and very informative as usual, would like to see more videos about online business! Waiting patiently!
@FranchiseCityOnline
4 жыл бұрын
Lol sorry - the new channel will be covering mostly those types of topics but has been admittedly slow. Thanks for hanging in there!
I have my own food business and I hear nothing but complaints from franchise holders that the mother company is regarding them as a cash cow. These places are at the mercy of the franchise which is demanding them to sell a certain product that end up as a failure or you can only buy their equipment at a 300% upgrade as what you can get at the local equipment store.I heard them even demanding them to build in a drive thru at a cost of $150,000 that took YEARS to pay of. I am thank God NOT in a franchise. I work hard and I am wealthy as well. You don't have to be a slave to do well.
excellent video!
I’m a GM and my owner is KILLING it.
When he said buy a job lol
@lijie6431
4 жыл бұрын
That is a real thing
@jeffc1347
4 жыл бұрын
It's a common saying in franchising
@walex1101
3 жыл бұрын
Basically investing
Love the video. Just subscribed.
@FranchiseCityOnline
3 жыл бұрын
Thanks for watching!
I had no idea the take home for owners would be this low. The margin for error is tiny. Your expenses are off 5% and you could totally lose money.
Thank you for this video!! 🙏😇😎💃💜😊
@FranchiseCityOnline
4 жыл бұрын
Thanks for visiting!
I had a friend who owned three Subway locations. He had to own three just to make a decent living. The old franchise agreement stated no Subway franchise store would open within X km radius of the other store. Increasingly that was radius rule was decreased because you have Subway shops all over now. One store only brought in $32 k per year.
Love your show thank you
@FranchiseCityOnline
4 жыл бұрын
Thanks for watching!
Great video.
Thanks I was just about to get one of those 😁
worked at a dunkin years ago and ended up working with the owner one night because the other baker called out sick...was a real eye opener he was cool and was telling me if he takes 10% after all is said and done he is happy.....not the money making machine you think...
Very informative thanks alot 👍🏾
@FranchiseCityOnline
2 жыл бұрын
Thanks for watching!
Great video here.
The successful franchises are the ones with good employees. Remember, who you hire can make you or break your store. Also don't let your landlord get the best of you. Get someone to help you negotiate your lease.
Very interesting good job
I had no idea what the average net was for most franchises. I was in business for 39 years. I did engineering product design and manufacturing. I always thought to myself, "I should have bought a franchise." I'm now retired, basically considered wealthy and so glad I didn't buy a franchise.
Very accurate...a friend of mine is a banker who has verified some of this.
He gives the net profit, but doesn't talk about the owner's income? So MCD Nets $150K but what does the owner pay himself or is that included in the net? So we don't own a franchise, and we pay ourselves $150K as income and net about $75K for a total income to the owner of $225K (assuming the net profit is not retained in the company which in our case it is). So when you buy a franchise find out what the average owner pays him or her salary on top of the net profit.
Gross numbers are great, but the bottom line is what you want to focus on. My firm (My Franchise CPAs) works with one franchisee grossing over $1M in sales (single unit), but netting just $90K. Another grosses $700K and nets $370K. Both are painting franchises, but one is much better at managing costs than the other. So when looking for and picking a franchise, don't be deceived by the gross number. You need to really dig in to understand the bottom line potential of the franchise before making a purchase decision. ROI is also an extremely important figure to pay attention to. What are you getting for what you're paying on the front end?
I think you should talk about non monetary inherent risk in the franchises. What’s the scariest scenario for fast food? Customers get food poisoning? But for child care and elder care franchise you can have serious risk like kids getting molested, or dying cause they choke on food, or elders getting abused. That’s a whole upper tier of risk and headache than “mere” fast food places don’t have to deal with.
Very interesting!!
All MCDONALDS and burgerkings by me in wealthy suburbs closed. Not one for miles. Closed ones in great locations and there for years
I would imagine the "owners" are corporations that cut checks to the main shareholder. If you have 4 places paying you a $250 gm salary, you're making a million on a low risk business that can stay around for a long time. Chic fil a has the right idea treating owners like employees.
@nerderthings8608
2 жыл бұрын
Owners aren't employees
@infowazz
2 жыл бұрын
Buying an existing franchise saves a lot of money but you are inheriting their problems and that is usually why they are selling it. If you have experience fixing one such location then you do it again and again until you have a handful of locations.
I m looking for buying a prifitsble franchise.. I found this video helpful for look for a commercially lucrative franchise ..
Can never believe the amount if money that business report. A coworker wife rented a space for think it was around 40 kid day care center. He would lease a $55.000 fancy pick up truck every three years and wrote it off because he done the maintenance on it. At Christmas time they purchased a $1,000 of $25 gift cards that they wrote off as Christmas presents but keep every one for themselves. At my first job owner cried the blues during contract talks. Said he was only making a very small profit. His wife was the president of their leasing company and received a $50,000 salary ( 50 years ago so now would be over a quarter million dollar salary ). The office did all of the paper work. All she did was sign around 100 owners cards a year. She get a top of the line new Cardiac every two years .Their no show sons & a daughter were also making big bucks for doing nothing.
I assume the numbers given for profitability are based on the store having a general manager in place. Most single store franchisees manage the store themselves and keep that money.
Wonderful!
In my twenties I used to want to own a restaurant but then worked in them for 10 years. The only way to make it as a franchisee is by owning multiple locations. Between employee theft, poor location choices you would be left with a few Ideal stores that actually generate profit. It's a tough business and things are not what they seem.
Great info
Nice information
@FranchiseCityOnline
Жыл бұрын
Thanks for visiting!