U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Business
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-27-2018, 09:17 PM
 
808 posts, read 369,894 times
Reputation: 508

Advertisements

Has anyone had success with buying a cheap franchise?

What did you learn?
What would you do differently?

I began looking some up, some go as low as $150/month, in the form of a subscription. I like the idea of a small start up cost and minimal risk.
Reply With Quote Quick reply to this message

 
Old 12-28-2018, 06:55 AM
 
Location: Scottsdale, AZ <-> Silicon Valley, CA
6,437 posts, read 3,969,545 times
Reputation: 23724
Why would you want to buy a brand -- because that's what a franchise is -- that no one's ever heard of?


If entry costs are low, you'll have to pay to promote the business.
Reply With Quote Quick reply to this message
 
Old 12-28-2018, 09:21 AM
 
Location: Union City, NJ
1,292 posts, read 779,227 times
Reputation: 1874
The only benefit to buying into a franchise for that little start up cost is that they will likely package the tools you need to get started if you're not very business or internet savvy. They may have a website designed for you, help you set up Adwords marketing campaigns, provide marketing materials, etc. All of this you can do at a fraction of the cost if you just put in the effort and do a little research upfront. Like, you can literally learn all of it on YouTube. That would be the route I would suggest.
Reply With Quote Quick reply to this message
 
Old 12-28-2018, 11:26 AM
 
808 posts, read 369,894 times
Reputation: 508
Thanks. I realize nobody has heard of them and the major negative point that comes to mind is how would I market it, I'm not a marketing guy, though I have experience with adwords, fb ads, etc. I already have a job, so can't spend my entire work days on it.

Most of the really cheap franchises don't seem like ones that immediately generate some revenue. I'm also doubtful of what support if any these franchises offer. My budget is 5k to buy into one that I'm convinced would generate 1k+ profit each month.
Reply With Quote Quick reply to this message
 
Old 12-28-2018, 11:29 AM
 
11,232 posts, read 20,818,996 times
Reputation: 10643
A 20% return per month? Yeah good luck.

Keep in mind the lower the barrier to entry the worse the opportunity.
Reply With Quote Quick reply to this message
 
Old 12-28-2018, 12:41 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
29,033 posts, read 52,582,505 times
Reputation: 29934
I have seen many franchisees that paid a lot more for nationally known shops to last only 6-8 months before failing. 3 in one city alone, in just 3 years where they had spent over $100,000 and had national advertising to help them. The biggest failures were due to the franchise people saying "we'll train you, anyone can do it." Unfortunately skilled workers cost money and inexperienced workers have to be thoroughly trained by people that really know the work. The franchisee must also know how to operate a business. That included training does not help much.
Reply With Quote Quick reply to this message
 
Old 12-28-2018, 12:45 PM
 
Location: North State (California)
32,755 posts, read 2,547,287 times
Reputation: 11101
Quote:
Originally Posted by wheelsup View Post
A 20% return per month? Yeah good luck.

Keep in mind the lower the barrier to entry the worse the opportunity.
If it was that easy, everyone would have one. You also need some business sense & common sense to make money, not just buying a bs line.
Reply With Quote Quick reply to this message
 
Old 12-28-2018, 04:35 PM
 
808 posts, read 369,894 times
Reputation: 508
Quote:
Originally Posted by evening sun View Post
If it was that easy, everyone would have one. You also need some business sense & common sense to make money, not just buying a bs line.

Well that's why I'm asking for info from someone who may have bought one and knows first hand.
Reply With Quote Quick reply to this message
 
Old 12-28-2018, 04:38 PM
 
808 posts, read 369,894 times
Reputation: 508
Quote:
Originally Posted by wheelsup View Post
A 20% return per month? Yeah good luck.

Keep in mind the lower the barrier to entry the worse the opportunity.

For a cheap franchise I don't think 20% is unreasonable, it's not like I'm buying a 3 million dollar Mcdonald's franchise.
Reply With Quote Quick reply to this message
 
Old 12-28-2018, 04:47 PM
 
808 posts, read 369,894 times
Reputation: 508
Quote:
Originally Posted by Hemlock140 View Post
I have seen many franchisees that paid a lot more for nationally known shops to last only 6-8 months before failing. 3 in one city alone, in just 3 years where they had spent over $100,000 and had national advertising to help them. The biggest failures were due to the franchise people saying "we'll train you, anyone can do it." Unfortunately skilled workers cost money and inexperienced workers have to be thoroughly trained by people that really know the work. The franchisee must also know how to operate a business. That included training does not help much.

That is my fear with any new job or even franchise. I'm the type who asks many questions. I had to leave my last job because my trainer was a trainee himself, but acting like a veteran, doing things a professional wouldn't do etc. I have a business sense but with out the right training material anyone can fail.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Business
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top