My dad wants to put some of his money into a franchise...

[vipervin]

Take it from someone that owns a franchise store right now, don't get into it without thoroughly researching the industry.

Before you make any decision, read this: [ame="http://www.amazon.com/The-Franchise-Fraud-Protect-Yourself/dp/1419688626/"]The Franchise Fraud: How To Protect Yourself Before And After You Invest: Robert Purvin, Robert L. Purvin Jr.: 9781419688621: Amazon.com: Books[/ame] If I were to do it all over again, I would have bought an existing business already generating cash flow.

As a franchise owner, you really aren't your own boss. You are still have to follow the rules of the franchisor. And the worst part of the whole thing, they can changes the rules on you at any time.

However, a lot of franchises do make money. You just need the personality that fits well into that style of business.

If you do decide to go with a franchise, find one with a really strong brand presence. A brand that people go to on a constant basis because their products/services are great.

PM me if you want to talk more.

 

[drave]

I keep shit simple, ...probably...probably...probably....or whatever.

fixed that for you.

 

[contract]

Dunkin Donuts. Those fuckers sell crack in the form of coffee.

This.

Have helped a friend launch a DD franchise store. Their margins are pretty bad on the food items, so you better be able to push the coffee and drinks to make a profit. Corporate is pretty strict, training process is on-point, and they have a really nice setup for management.

But I will say this... Pair it with a gas station setup and you literally force people to buy something. Their going to come in, smell the doughnuts and coffee, and let's face it.. Most people will always grab a snack.

Thinking about it, it's actually a fucking goldmine.. With unhealthy processed food loving fat Americans, I can only see this becoming the next gold rush.

....

Wouldn't own one personally though, (even though it's easy to manage)... Not my kinda thing/dream. How can you really come home at night if you own a McDonalds, knowing you helped slowly kill a bunch of people? lol... No thanks.

 

[drave]

How can you really come home at night if you own a McDonalds, knowing you helped slowly kill a bunch of people? lol... No thanks.

the only people who die from mcdonalds are fast-food addicts. if you owned any other business that charged money, would you could lie awake at night knowing you helped overspenders go broke?

 

[rusvik]

Self-Storage

Yep, this isn't a bad ide at all if you can find some suited property. It is almost as passive and recurring as it gets. You only need on or two low paid employees as well, some lockers and padlocks plus a security subscription. Almost no risk , low maintenance. People don't pay, you sell their stuff.

 

[mgrant]

I keep shit simple, I would build a car wash. A good carwash is probably 500k to build, the land is whatever the land costs. The EPA wants the water collected and filtered, there is probably a cost for that every month. water bills probably are 1k a month or whatever.

For a nice wash, you're looking at over $1MM start-up. Depending on the type of wash, you're looking at ~15,000 washes/month on average. Net revenue to be expected would be ~$500k+.

 

[mgrant]

I'm a faggot.

Get the fuck out.

 

[cougarclaws]

Put a Subway next to a high school

 

[Wicked Ice]

 

[pocketrockets]

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.

If he is VP of operations has he spoke with the commercial lending dept. about who seems to be doing well in his local area? I can guarantee someone locally is KILLING it right now and taking advantage of a gap in some industry. Figure out what it is and if there is room for another business to operate.

Also, like someone mentioned above, find out what local businesses are for sale that have a profitable history (ask around the bank, search Craigslist, MergerNetwork.com, etc)

Or if you want more of a passive income with probably just as good ROI, you can lend out that $500k and get 10-15% as a private money lender for real estate.

 

[Rusky]

Little Caesars next to a community college.

 

[EricVorheese]

you can lend out that $500k and get 10-15% as a private money lender for real estate.

Elaborate please.

 

[cpauser]

strap-ons

 

[cpauser]

Give it to me. I'll buy some bitcoins and stocks. You'll have no money left and that will solve that problem.

 

[blureach]

The info about 500k not being enough is only if you are trying to open a high-overhead shop/store.

I have a friend that owns a cleaning company with a few vehicles and ~20 employees that is a franchise. He is making great money but definitely works a lot. He could have done it on his own, but it would have taken him even more work and time. The road map and support is very helpful.

Being a banker, I would think he would be great to get into something more finance based.
Maybe Tax, Accounting, or bookkeeping?
CFO for rent is a decent model too.

 

[BlueYonder]

If I were looking to get into retail, I'd invest in a kiosk micro-store at a shopping mall. There's far less set up cost, your store is portable and you could even change your location on the fly.

How about investing in a Auntie Anne's pretzel franchise? I'm familiar with the products. Pretzels are made from the cheapest stuff (white flour, shortening, sugar, salt) and sell at a huge markup. Lots of people stroll by the kiosks and spend $20+ on sugary lemonades and AA's line of sweet, greasy pretzels.

They do a lot of sampling at the mall, and the baking pretzels smell great (free advertising).

Same with Cinnabon. Small kiosks or stores, limited menu and a cheap product that sells at a huge markup. This is junk food, but not your problem.

 

[Benji49]

Where would you find businesses for sale?

1. Local chamber of commerce
2. Realtor's office (not all of them sell residential)
3. Local bank manager/credit union manager

You do have to pound the pavement to find a good business for sale.

 

[VinBed]

Buying a single franchise is like running traffic to your lander from only one traffic source.

 

[arxs]

Peer to peer lending? prosper / lendingclub ?

 

[REIMktg]

As a bank operations manager he may be well suited to running a franchise, which is in essence what he is doing in operations. Though he needs to evaluate if he were in sales and not operations, how would he do within the bank because as a Franchisee or Entrepreneur he will be both.

This could be a good question to ask him because operations is not sales within a bank. There is a slight sales crossover, but it is not sales.

If he does not have the mindset or "love of sales" then he should pick a franchise or job that allows him to leverage his love of operations over sales.

There is a HUGE divide between operations and sales in a bank and a HUGE divide between the skillsets of those truly successful at each. the most successful operations oriented salespeople keep clients through exceptional implementation of what the salespeople promised, but it was the salespeople that brought the client. Sure Operations people get clients that they happen to be face to face with due to their service, knowledge, and skillset - but these customers come to them. They do not reach out and get them.

Make certain he is ready for true sales, otherwise pick a franchise that will send you customers and all you have to do is serve them well. This is a very important point and do not "think" the franchise is sending the clients, that truly needs to be there already like with McD's, Subway etc.

Making the above evaluations of who he truly is, is super critical before moving forward.