Franchise Fees

[Andy_B]

Hi all,

Is there a web site that might list what the franchise fees are for places like Subway, Dunkin Donuts, Golds Gym etc, or is this something I would have to go to each company for?

Andy

[peledre]

Hi all,

Is there a web site that might list what the franchise fees are for places like Subway, Dunkin Donuts, Golds Gym etc, or is this something I would have to go to each company for?

Andy
Subway is one of the cheapest. IIRC you can get a subway up and running for about $180,000 including leases, franchise fees, etc...

[Andy_B]

wow, is that it??

I figured it would be closer to $350k when you throw in all of the startup costs.

Andy

[Sachin]

Try: http://www.franchisedirect.com/

Sachin

[peledre]

wow, is that it??

I figured it would be closer to $350k when you throw in all of the startup costs.

Andy
depends on where you are of course, and if there's anyone else in the market, etc... but if you're going into a new market in a mid sized town (40-80k) that's about what it cost 2 years ago IIRC.

[peledre]

depends on where you are of course, and if there's anyone else in the market, etc... but if you're going into a new market in a mid sized town (40-80k) that's about what it cost 2 years ago IIRC.
http://www.franchisedirect.com/directory/subway.shtml

[bostonsoccermdl]

A few years ago, a coworker of mine was exploring new line sof work and he was looking into Dunkin Donuts. He told me it came out to about $1,000,000 to get involved..

[Andy_B]

Thanks for all the info everyone!

Andy

[yimmy]

Don't forget there's also a royalty fee every month. I heard that UPS wants 12% if you open up a UPS shipping store.

[peledre]

Don't forget there's also a royalty fee every month. I heard that UPS wants 12% if you open up a UPS shipping store.
They might as well punch you in the face and screw your wife for 12% off the top.

[Supernaut]

Andy,

I am in the planning stages of starting up a Soccer Post franchise. Costs about $180K to get up and running, with a $300K+ net worth qualification. They've got a good business model, from what I've been able to determine, so far. If you want to get into the soccer biz and can't afford an MLS franchise fee, you may want to check them out- they've been great to work with.

Also, try www.franchiseopportunities.com (http://www.franchiseopportunities.com)

[Andy_B]

Andy,

I am in the planning stages of starting up a Soccer Post franchise. Costs about $180K to get up and running, with a $300K+ net worth qualification. They've got a good business model, from what I've been able to determine, so far. If you want to get into the soccer biz and can't afford an MLS franchise fee, you may want to check them out- they've been great to work with.

Also, try www.franchiseopportunities.com (http://www.franchiseopportunities.com)

Thanks Supernaut,

I have been looking into this. Obviously I don't have an MLS franchise anywhere in my future (but we can all dream can't we?)

We have been deliberating on buying a summer home but we have also been thinking of just tossing our engineering careers aside and starting up something like a franchise instead of spending the money on a second home.

I have been to some local Soccer Posts and the stores are very nice. All good stuff and well laid out.

Andy

[Supernaut]

Thanks Supernaut,

I have been looking into this. Obviously I don't have an MLS franchise anywhere in my future (but we can all dream can't we?)

We have been deliberating on buying a summer home but we have also been thinking of just tossing our engineering careers aside and starting up something like a franchise instead of spending the money on a second home.

I have been to some local Soccer Posts and the stores are very nice. All good stuff and well laid out.

Andy

For what it's worth, my wife and I went through a similar exercise late last year. We're totally fed up with our longtime corporate careers and we decided to heed the advice of a friend who is happily self employed- "Do something you love".

If you have questions or need help, feel free to contact me via pm. The Small Business Adminstration website is a good place for information as well.

[Andy_B]

For what it's worth, my wife and I went through a similar exercise late last year. We're totally fed up with our longtime corporate careers and we decided to heed the advice of a friend who is happily self employed- "Do something you love".

If you have questions or need help, feel free to contact me via pm. The Small Business Adminstration website is a good place for information as well.


Thank you very much for that offer. I may take you up on that.

I hope you keep the board up dated on how your progress goes with this franchise.

Andy

[rkim291968]

A few years ago, a coworker of mine was exploring new line sof work and he was looking into Dunkin Donuts. He told me it came out to about $1,000,000 to get involved..

Wow, with that kind of money, you can invest in *diversified* portfolio of stocks, mutual funds, and bonds to get 8 - 15% yearly return. You can lose money but in the long run, you will come out ok. You don't need to slave over to get the franchise going either.

Small business can become a headache in a hurry if you don't do your homework right. Even if the business is good, it can become a miserable job. Take it for someone who tried, made money, then quit because the money isn't just worth losing family time over it.

[junjunforever]

the entrepreneur magazine is a really good source for future franchisees. You should get the subscription if you're interested. Yearly subsction is less than 15 bucks. I think in the last issue, it had a list of best franchises to start at home. It was flooded with office cleaning ones. Some as cheap as couple thousand bucks to start.

On the higher end, to start McDonald or burger king, i think it costs over 1.5 million. Not to mention the loyalty fees and "rent" expense, in case of McDonalds.

edit: link http://www.entrepreneur.com/

[rkim291968]

On the higher end, to start McDonald or burger king, i think it costs over 1.5 million. Not to mention the loyalty fees and "rent" expense, in case of McDonalds.

Wow, $1.5m for a burger king?

S&P 500 historical yearly return is about 7 - 14% depending on which particular years how many years you sample. Let's pick an even number like 10% for next 20 years.

$1.5 mil invested in S&P 500 at 10% return is $150,000/year.
Investing 5% US Treasury will return $75,000/year.

What does a typical burger king yearly return on $1.5m investment? Anyone know?

[christopher d]

Small business can become a headache in a hurry if you don't do your homework right. Even if the business is good, it can become a miserable job. Take it for someone who tried, made money, then quit because the money isn't just worth losing family time over it.Especially if you're only buying one storefront. Factor in your own desired salary, and then see if the anticipated revenues will cover you and a staff. Spreading that out over a half-dozen stores makes it worthwhile, but for many franchises (especially fast- and convenience-food), the hassle isn't worth what you'll get out of it.

[Footer Phooter]

Wow, $1.5m for a burger king?

S&P 500 historical yearly return is about 7 - 14% depending on which particular years how many years you sample. Let's pick an even number like 10% for next 20 years.

$1.5 mil invested in S&P 500 at 10% return is $150,000/year.
Investing 5% US Treasury will return $75,000/year.

What does a typical burger king yearly return on $1.5m investment? Anyone know?

I think it's usually low six-figures (although obviously it can be much higher.) Also, if they weren't getting a good reutrn, there wouldn't be so many of them.

[Andy_B]

Small business can become a headache in a hurry if you don't do your homework right. Even if the business is good, it can become a miserable job. Take it for someone who tried, made money, then quit because the money isn't just worth losing family time over it.

I appreciate and understand this point of view, thank you.

What type of business did you run?

Andy