Hi

Has anyone ever bought into the franchise business things and setup a successful business with one. Or are these things to get money out of guliable people?

Seen a few that have taken my fancy, but not sure if its a con.

cheers

Harry

Can be a con. Often isn't. But you will rarely earn the same money you could if you own your own business outright.

Be very careful. Even some that are BFA acredited are difficult to work. The power always lies with the Franchisor who can be more strict and picky than an employer.

It's often the case that you could actually set up your own business in the same line of work without the massive upfront costs of a franchise fee (for joining) and without the monthly management service fee that they will probably take as a percentage of your turniver (not profit). 80% of the time you actually get very little for your money.

You won't earn the money that they claim, or if you do it will take much longer to get there.

Of course, there are some great ones like McDonalds and Burger King, but then you're looking at serious investment.

Out of interest, which ones are you looking at?

dont touch one would be my advice as I'm in the process of getting out of one that has proven to be a sack of shite
everything squin says above is true especially the part about setting up yourself also even macd's and bk aren't anything like as good as they once were g

I got involved in one through my GF. Seemingly legit but turned out to be a right pile of shite. It cost me a year off work to sort out and sell – to somebody else who went bust, 'coz the franchisor was shite.

Who are you looking at – I may have some first hand experience I can share.

Someone makes money – and it won't be you*

*in 99.99% of cases.

are the specialized concept stores franchises?

Some are great others not so…For example – some people have done very well out of Specsavers (a franchise)…the terms aren't as generous these days (and you need to be qualified to get into it). I spoke to a Chips-Away franchise owner whilst he fixed my car – he sounded happy enough with 'his' business. So not all a con.

Specsavers are not Franchises, they are Joint Ventures. Normally with a 50/50 split of ownership between the Partners (The Opticians) and the Group.