[NemesisX]

Originally Posted by bosster hymen

the general scheme of food franchises: you'll make what you're projected to make, but the hours will be long and you'll be tied to the store. (i'm assuming you aren't already in that)

i know of several successful food business owners and it's the same general opinion: money's awesome, but it's a working prison.

It's kind of hit or miss. We have a family friend who owns/manages several Subways and he maybe grosses $150k/year (not for the restaurant as a whole obviously; I'm talking about his personal income). However, the good news is that he has a really cushy job and lots of free time, so in that sense it's not so bad.

I think I've looked this up before but the average salary for the owner of a single franchise is pretty awful. It's like $40k-$60k/year per McDonald's, for example. Obviously your mileage may vary but owning a franchise is far from a guaranteed ticket to becoming wealthy.

[NemesisX]

Here's a good article with some numbers:

http://money.cnn.com/2004/04/29/pf/howmuchfranchise/

So $626k minus rent, labor, taxes, and other expenses. Correct me if I'm wrong but it seems like "profit after cost of goods" simply takes, well, the cost of goods into account and you still have to subtract the franchising fee from that $626k.


" Gene Gold opened a new Pearle Vision four months ago in Brewster, N.Y., after partnering in a Pearle store for 20 years in Stamford, Conn. He says the UFOC data the company provides is pretty accurate and that it also helps out with market surveys and even "sent its real estate experts to look at the location."

In its UFOC, Pearle lists mean average sales of $674,000. Pearle is one of the few franchisors to give details on its average store's net profit, about $96,000. Most only list profits before labor costs, taxes, rent, and other expenses are deducted. "

[NemesisX]

So Pearle has average sales of $674k and lists a true average net profit of $96,000.

Dunkin donuts has average sales of $813k FWIW.

The reason I bring this up is that "profit after cost of goods" is a probably really deceptive figure. A huge, huge chunk of that will be subtracted out to cover other costs.

[amanda hor$t]

Originally Posted by NemesisX

It's kind of hit or miss. We have a family friend who owns/manages several Subways and he maybe grosses $150k/year (not for the restaurant as a whole obviously; I'm talking about his personal income). However, the good news is that he has a really cushy job and lots of free time, so in that sense it's not so bad.

I think I've looked this up before but the average salary for the owner of a single franchise is pretty awful. It's like $40k-$60k/year per McDonald's, for example. Obviously your mileage may vary but owning a franchise is far from a guaranteed ticket to becoming wealthy.

i actually don't know any franchise owners, just single mom and pop restaurants/bakeries. by my estimates they're pulling dentist/doctor level incomes.

[ejheverest]

Most of the profits get lost in paying the franchise %. I would question why the dd is for sale, if the return on investment is great, why sell it?