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    2 Replies Latest reply on Nov 25, 2011 10:11 PM by fayazk

    Franchise opportunities

    Barky Dog Tracker
      So, I'm looking at several franchise opportunities. I might have an investor (family member) who is willing to take the plunge with me- even in this economy. I'm trying to sell him on the concept of opening a McDonald's franchise. Those restaurants seem to be doing well in this downturn. But, those McDonald's are so expensive. Starting price for a McDonalds is well over a million dollars. Though, it seems to be a fair bet that you'll make your money back and soon start making profit.

      But, I also noticed that the #1 franchise opportunity this year is Subway. It even ranks above McDonalds. Starting price for a Subway franchise can be less than $100,000!

      I'm wondering- is the big price difference between a McDonald's franchise and a Subway franchise due to the land and building requirements? I guess with a Subway you are only leasing space, whereas a McDonalds- you have to buy land and build the building. Is that correct? Do you own the land and building that your McDonald's franchise is in, or does corporate McDonalds own them?

      Thanks in advance for any guidance...

      -Barky
        • Re: Franchise opportunities
          Mailman1 Wayfarer

          Barky,

          How much do you plan on being involved in the day to day operations? It is exponentially more difficult to manage a McDonalds vs a Subway franchise. McDonalds is very restrictive when approving a franchise purchase too. I"m not saying to not purchase a McDonalds franchise but that is a huge undertaking that will require a lot of experience and deep pockets. McDonalds is one of the most well known restaurants in the world and will generate a lot more sales volume than a Subway. That is one reason for the price difference. The scope of the operation is much different too. McDonalds restaurant equipment and POS system alone probably costs over $150,000.

          What is your experience in restaurant management?

          Good Luck!
          • Re: Franchise opportunities
            fayazk Adventurer

            When considering entry into the franchise/business world, always consider a RESALE opportunity in any brand that you like. You get cash flow from day one, and some of the uncertainty  and risk has been taken out for you; in other words you know what you are getting. Subway remains the #1 opportunity, year after year by many polls, and McD is out of most people's league

             

            Take look at some information on www.mrfranchiseman.com about various franchise topics

             

            Fayaz Karim