My wife and I are considering (and probably will very soon) be opening our first business; a pizza franchise in a nearby community. We have limited means. And although I have an independently wealthy friend whom is interested in financing our endeavor, we must be frugal. I spent several years in my teens (I am not incredibly old now) working for the same franchise, and have wanted to move into the industry more permanently for some time.
Would anyone be willing to share any suggestions, advice, or personal experiences?
How are your businesses performing in this economy?
Any suggestions on dealing with rising food costs?
I will be opening in roughly 5 weeks, and I would be happy to share with you how it goes for me! I know I have my finger crossed, and I am holding my breath a bit!
i think the only thing worse than owning a shop right now is opening a new one in this economy if its what you want go for it i just dont belive in partnerships seems like you will be doing all the work and he will be holding his hand out no matter how busy it is . good luck and think long and hard
ahh, the beauty of independence
suggestions?: stay independent
how’s bussines?:Excellent,compared to my big corporate franchised “neighbors”.Seems like the community is more willing to buy a local superior product thats of the community,versus your everyday cookie-cutter pizza joint.
Rising food costs?An independent operator knows other independent purveyors and keeps their ear to the ground or you can pay franchise fees and get guarantees on sub par ingredients
Theres a huge difference between the independent restaurant & the corporate franchise!
come inside and we’ll prove it…
I wouldn’t call it a partnership; he is lending me the funds and the return e is looking for is substantially lower than what some are hearing from SBA loans.
The other partnership you have to look at is the franchise. Remember you pay the royalties to them before you get a dime to run the store nevermind anything to take home.
mbutler5000, have you checked into the franchise agreement and requirements to find out their percentage and what you get in return for the franchise fee? Some are better than others, and some appear simply to be blood money for a name.
It is a smaller franchise. They will help with negotiations regarding my lease and buildout, assistance with design of building, training of self and G/O staff… That’s about all I can think of off the top of my head. I worked for a franchisee of this company when I was in highschool… my favorite job to date… though it didnt come with any of the stresses of ownership.
I offer a basic caution that if you are going to be taking on what amounts to a partner in your business who gets their cut off the top of the gross you should be absolutely automatic . . . unconscious . . . in quoting the benefits and responsibilities of the franchise agreement before working on a business plan involving them. Without absolute clarity of how that one relationship will work, the rest of the plan is only speculation.
Additionally, if their contribution is only at the front end negotiations, and you have to pay them a % for all of eternity, then the relationship is very unbalanced. You can get a consultant for far less money. BodegaHwy here on Think Tank would probably cost less to fly in and consult for a week. Dave Ostrander, if he still does that sort of thing, would even be less expensive than a franchise contract. Then you have absolute freedom of autonomy to do as you please to grow your business and pocket the cash.
A radom number scenario . . . 3% of 200,000 gross sales is $6,000. That is tiny sales in one year. 3% of 400,000 is $12,00 in one year. You can get some good professional start-up consultation for that money . . . and spend it one time.
if its what you want go for it i just dont belive in partnerships seems like you will be doing all the work and he will be holding his hand out no matter how busy it is . good luck and think long and hard