I found this today and it got me thinking about franchises in a whole new way.

The Art of Nonconformity » Do You Want a Business or a Job?

It does seem like a bad deal to pay a 1/4 of a million dollars to run a business where you have no control over anything.

But this must be only one side of the story or franchises wouldn't work.

Do you have any experiences good / or bad with starting your own franchise or know anyone else who did? Is it a good solid business plan or throwing money out the window?

When I was in the workforce 5 years ago, I was a commerical (small business) lending assistant. The biggest benefactor is obviously name recognition. Although you have little control, you also have structure. You have the benefit of many years of experience in most cases. The franchises started while I worked in small business lending were very successful.

i know a lot of people who own franchises, from gas stations to subways, to dukin donuts and nobody is out of business, they are all making money. I was considering a 7-11 store, but got promoted at work, so put it on the backburner, but as long as you chose a good cfranchise, it will go well.

__________________
We buy things we dont need,
with money we dont have,
in order to impress people
we dont like?
(Ramsey, D)

I would think there wouldn't be so many of them out there if people werent making money. Where we live, new franchises seem to pop up constantly. They are always being built it seems.

I posed a question to my husband about this just days ago. He wants to open a franchise, $30,000 for the rights and about $125,000 to get the location, equipment, etc.

I asked why not just think of your own business. He said most fail, whereas over 75% of franchises do not. There is a lot of money put into demographics and where they can open a location, stuff like that. I feel there may be too much structure, but I guess that sounds like it is a good thing with all this. I am just SCARED to sign on the dotted line...

Do you mind saying which one it is, we were very close to getting a 7-11 and the best thing about them is that there was a risk in it for them, it wasnt that we would pay them a fee and thats it. They were getting 50% of the profit, so if we didnt do well, they didnt do well either. Franchises really train you and if you dont know a lot about the business they really help you, maybe start with a franchise and when it finishes, then get your own business, or you cna start yor own business on the side, once this is up and running.

__________________
We buy things we dont need,
with money we dont have,
in order to impress people
we dont like?
(Ramsey, D)

I just want to add, unless you have actually ran a business, and really know what you are getting into then a franchise may be the thing to do. They have done the work for you, they know what works. My husband has been in upper management over 20 years, he could run his own business. It is just finding that perfect business to open. A restaurant is an idea we had, but with the food costs it really is tough to make it. This current idea he and his partner have is one that we know about but I won't say are very knowledgeable about. And that is what we need to do is become educated. I have seen the numbers, it would be (in my opinion) tough to profit $100,000 a year at first. At least with a franchise you have the structure in place, but like the article said they will even tell you what color shirt to wear, which is the part I don't care for. But then again, I have no expertise in this at all, ,but I think as an owner I would want to be able to make some changes, as I see fit for MY location. I do agree, having more than one location we are finding out is how most people really profit. We know someone with 3 Arby's, they want you to have at least 2 to open an Arby's. I know someone else, 2 restaurants. They say in the long term, when business lags at one, it may boom at the other, creating a happy balance year round.

Sorry, were you asking me this? I did not mean to pay a fee and that is it. of course there is a risk to both parties, my husband and his partner would pay for the rights, and to open the locations. What they are looking into the corporate would receive 5% of the gross sales per month I believe. And there are strict penalties for not paying by a certain date, and for misreporting (with the software you use I don't know how this could be wrong, but it is in the info I read) income. It is for a place that offers massages, but you can pay a monthly fee (sorta like a health club) for one a month. Now they are looking into another one, it is less money as the facility itself can be smaller than the other company they looked into. They have checked out Subway, Arby's, 2 massage places, the places where you make a month of dinners, a bar, a coffee shop/bakery place....and a few others, I forget them all!