My dad wants to put some of his money into a franchise...
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Meh
What kind of work does he like to do? Any manual labor type stuff? Restaurant experience?
Franchises are a great way to buy your way into a management position which is a great option for many people with the cash. No need to reinvent the wheel in some cases.
Unless you go into a highly established franchise like McDonalds where they have it down to a science, don't trust the profitability expectations they give you. That doesn't mean you can't make good money, but it's just not usually as great as they say.
A good option for you and your dad is to talk to a franchise consultant - Buying a Franchise - Start a Franchise Business - Franchise Buying Basics - FranNet Live Site
They are commission based on the franchise you select and they have limited options, but they can provide you with a ton of information.
I don't know about that. I for one have NO plans to ever enter the offline market, but there are still plenty of franchises bringing in huge stacks of money. The local McDonalds where I'm from is without a doubt bringing in 8 figures a year.
It's also kind of a big business in a box for dummies. The big corps handle all of the marketing, prices, testing, etc. Of course the franchisees are paying for it, but if it's something they don't know it's an easy way to get it taken care of by a team of really talented marketers.
Does your dad like to work? Because running a franchise is a lot of work, standing on your feet all day and babysitting kids and young adults who dont give a fuck about your business.
You can make money in it but you have to be able to run shit like a boss.
You can make money in it but you have to be able to run shit like a boss.
lol, OP will clearly have an issue with his father opening a known anti-gay franchise. inb4 father-son grudges and years of silence.
Franchises are not the answer... However, tell your father to contact me. I'm Jewish. We got dis.
Well for one he is under capitalized. He sure as hell aint going to open a Mcdonalds w/ 500k. Most "real" franchises dont want 1 store, they want 10. And a 500k max investment wont even get him in the door.
I can all but guarnatee (90% chance)if he piss's his retirement (assumption) money away on a franchise, he will be out of business in less than 3 year and be broke.
This isn't his retirement money. I think he just wants to quit his job, but he's not quite ready to retire and golf all day. He's a vice president of operations at a small bank.
Why doesn't he just sell what people want to buy?
Open a dispensary or liquor store. Stock lasts a while, goes quickly, good margins even w taxes and demand will only increase in the times ahead.
Edit: And until they're like Starbucks, there can always be more.
Open a dispensary or liquor store. Stock lasts a while, goes quickly, good margins even w taxes and demand will only increase in the times ahead.
Edit: And until they're like Starbucks, there can always be more.
This is a good question, there are alot of things to it but I cant point them all out right now but all I can tell you is...
In my opinion I would not look into investing into most things out their right now
First you need to pick what you want to invest in than research the locations and see if its the right spot to put a business and what type of people are around there
For example: Someone opened a Menchies in my area in ventura, and it is 2 steps away from an elementary school...do you realize how powerful that it? Little kids get out of school and they always to go icecream trucks, and want snacks when they are out of school, whats better than frozen yogurts with more edibles than you can ever want?
So you see you must look into the area, mastermind your investments, how long will it take to get that 500k back when you invest it? is it even a loan? if it is you will need to pay back with interest how long will that take? Do you even have the type of assets and credit to open 500k franchise
There is just alot of things to think through when your investing in a franchise
One of the best investments you can make is apartments also...
Hope this helps
In my opinion I would not look into investing into most things out their right now
First you need to pick what you want to invest in than research the locations and see if its the right spot to put a business and what type of people are around there
For example: Someone opened a Menchies in my area in ventura, and it is 2 steps away from an elementary school...do you realize how powerful that it? Little kids get out of school and they always to go icecream trucks, and want snacks when they are out of school, whats better than frozen yogurts with more edibles than you can ever want?
So you see you must look into the area, mastermind your investments, how long will it take to get that 500k back when you invest it? is it even a loan? if it is you will need to pay back with interest how long will that take? Do you even have the type of assets and credit to open 500k franchise
There is just alot of things to think through when your investing in a franchise
One of the best investments you can make is apartments also...
Hope this helps
Yeah, a liquor store would be nice. Even if you failed, it's not like you would lose too much money. Isn't it pretty tough getting a liquor license though?
Create a huge authority site. With such a number, he will start seeing money flowing in before he invensts the firsts 100k.
Is the 500k all of his "fuck you" money? If it's a small part (<20%) of his "fuck you " money and he still has a fully funded retirement a small biz may be the answer.
If he is serious about opening a franchise he will need access to at least double if not triple his 500k max to have a chance a success. And this is not counting his retirement money (even if he says it's not, it probably is). The number #1 cause of failure for any small biz is being under capitalized. I wouldn't even consider a franchise unless I had a full 1 year's operating cost's sitting in cash in reserves. And that is after all his upfront costs. So if he has a 500K max he will probably wind up spending 650k getting the biz up off the ground. And if he ties all his cash up in his over budget problems he will eventually run into real cash flow problems.
If he can meet those financial considerations it may make sense. But even then it may make more sense to eliminate the corporate shackles that is a franchise.
Money aside. He needs to seriously consider if he is willing to invest 50 to 90 hours a week to his new biz, during his "golden" years. Does he want to have to manage low end "trailer trash" adn "hood rats" and put up with all their bullshit? It's very different managing bank employees versus service employees.