Restaraunt Franchising

[CinaC]

Has anyone here ever owned or looked into franchising a restaraunt?

I might have an opportunity to get into franchising with the Papa John's I work at, as the franchisee (based in Northern Virginia) is frustrated with his lack of effort to expand up this way.

I know I won't be able to do it without the financial support of my parents & my uncle in providing collatoral and such, but the store does $8k a week on average, and the profit margin is fairly high. So now I have to compile a "sales pitch" to my family to convince them to get involved - so far, the only questions I've thought to ask the current owner are in regards to the profit margin, and labor costs, what am I missing?

[SpecOpsWarrior]

Join the Navy!

CrazyOnAnAircraftCarrier, sounds a lot better then CrazyInAPizzaJoint!

[Watchman]

One thing about it...

I know several people that were mess cranks in the Navy, that got out and eventually opended restuaraunts. It was great training for them.I can think of no better thing than being a cook on a birdfarm or a base for training. Another thing...some prior skillls in management is usually required by most franchises.Serious managment,buying people skills,inventory control, advertising and the like. Being over several kids in a pizza store may not be enough unless you are active in the above.

[CinaC]

Spec:

But I could call myself "CrazyinaPie" and you could have all kinds of fun.

The advantages of buying a franchise of an existing restaraunt are an already established customer base, and being able to take advantage of corporate advertising.

quote:

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Serious managment,buying people skills,inventory control, advertising and the like. Being over several kids in a pizza store may not be enough unless you are active in the above.

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If I do this, I wouldn't try to run the store myself. I have management experience myself with Domino's, but I've already been giving thought to current store managers I've worked with in the past to bring in. Papa Johns allows franchise sales if the franchisees have a store manager lined up who isn't one of the franchisees. Speaking of those "several kids", several of 'em'll be gettin' the ax if this does happen.

[ 06-21-2003, 09:30 AM: Message edited by: CiaJ ]

[shooter1201]

I checked into several years ago. A well known fast food chain wanted $100K for a franchise..... Also, some retaurant chains require a certain population base/ratio per franchise.

[CinaC]

The store already exists so it's not a matter of determing a location, population base, etcetra. It's a matter of getting approved to purchase, and getting a loan to purchase. PJs requires a net worth of the owner(s) to be $200k, and the store will most likely sell for just over that same amount.

[AutumnAngel]

It sounds like you know more than we all do CiaJ so maybe it's time to talk to an attorney about the risk that is involved, because that's what it sounds like your the most concerned about. Or go and talk to other franchise owners in the area, they would probably have some good advice for you. Personally, I think it's a really good idea and probably a worthwhile investment.

[Xanthorius]

From my own experience working in a McDonald's, I know that our managers ran 95% of the restaurant for the owner. He'd show up in his Lexus and tell us we were making fries wrong, and then leave again.

So, I think you're on the right path Seriously, I'm sure it's more work than that, but it sounds like you're asking the right questions. If you commit, good luck to you! Pizza joints do pretty well in my town, I hope yours does the same