Franchises

[Gavin Scott]

Inspired by a mention in the rebrand thread, have any of you ever considered purchasing a franchise operation?

I've had my interest piqued by Subway. According to the bumph I've glimpsed online, they're one of the more successful operations one can buy into. Broadly 75% of Subway franchisees have more than one store - such is the profitability and ease of operation.

McDonalds is also a franchise brand, but the start up costs are huge with all the necessary equipment. Subway benefits from minimal requirements from that side (and goodness knows I've been into enough of them that don't have a toaster oven in operation), so I've mulled over the notion more than once.

Add to that, I love Subway products. You really can't go wrong with them, and they're completely consistent wherever in the world you are. With one exception, actually. I popped into one in my old home town, and they were using grated cheddar rather than the little triangles of "American cheese".

On the one hand I'm horrified by how expensive they are in Britain - in the states they were running a "five dollar foot long" campaign. Over here it's five quid for a 6".

As an owner though - kerching!

Anyone ever contemplated this?

[WillPS]

I thought you couldn't just open a McDonalds - they open all their restaurants then sell them to Hamburger University grads? Could be wrong.

There's a couple of Subway franchises around Nottingham that have failed. One operated a chain in Derbyshire towns (Ripley for one).

The main franchisee in Nottingham has shut quite a few of the restaurants in the City recently. Some were in bad locations, but I think there were just too many in too small an area.

Burger King's requirements for franchisee's are lower than McDonalds' I think - but they're far more prone to failure (perhaps because they don't demand such tough training).

Of all the McDonalds I've come across, I only know of 3 that are no more. Chessington's and Alton Towers' became Burger Kings following a contractual dispute with Merlin, so they hardly count. The only real example is the Spaceship one in East Anglia, and I don't think that was ever franchised.

Based on this anecdotal evidence, my opinion is that SubWay is relatively easy and cheap to set up, for far more risky a proposition. McDonalds require shedloads of investment, but are a far safer proposition.

[nidave]

Inspired by a mention in the rebrand thread, have any of you ever considered purchasing a franchise operation?

I've had my interest piqued by Subway. According to the bumph I've glimpsed online, they're one of the more successful operations one can buy into. Broadly 75% of Subway franchisees have more than one store - such is the profitability and ease of operation.

when I did my Management training a long long time ago now. they said (McDoanlds) that Subway were their biggest competitor and threat.

you used to be able to open a franchise however you had to work at one of the normal stores to learn the job starting from the bottom. You needed to know all the roles. McDonalds also pay for refurbs etc out of the franchise marketing contribution. each store pays a small amount and gets all the posters, equipment needed and marketing materials from this pot. (or at least that's how I was told it worked.)

[Chie]

Of all the McDonalds I've come across, I only know of 3 that are no more. Chessington's and Alton Towers' became Burger Kings following a contractual dispute with Merlin, so they hardly count. The only real example is the Spaceship one in East Anglia, and I don't think that was ever franchised.

The McDonald's on Beeston high street went bust in 2007.

It's suprising how many well-known high street names are actually franchises.

http://www.franchiseeurope.com/top500/

[Pete]

I thought Britain was unusual in that the majority of our McDonalds were owned by McDonalds Ltd rather than being franchises.

I got a footlong and the drink and crisps for a fiver the other week with a vouchers, you sure you're branch isn't just an expensive one?

Also is it common knowledge that you can get a Chicken Legend with *BOTH* sauces therefore recreating 80% of the fabness of the old Chicken Premiere. Sometimes they charge you an extra 20p but other times they seem to forget and you get it for nowt.

Also depending on the level of cretinity on the drive though you can get endless free coffees because they forget to ask for the loyalty card to be surrendered.

Also why do McDonalds have the worlds heaviest doors? Is it an attempt to give the customers a workout to cancel out the food?

[marksi]

You could always set up a milkshake bar with just some blenders from Argos and ingredients from Tesco. Must be the lowest cost start up possible.

[woah]

You could always set up a milkshake bar with just some blenders from Argos and ingredients from Tesco. Must be the lowest cost start up possible.

Companies have opened a couple of cheapo car parks on old pieces of factory land here in Sheffield, with no tarmac, just rubble ground - all day parking at £2.50 which is convienient for those to work nearby as the muli-stories are extorision. This must be the easiest set up ever, all you need is some ticket machines and cameras and you're sorted! Plenty of profit.

[Pete]

did a bit of sneaking moderating there and moved the slightly off-topic stuff into the co-op thread as I'd rather this be kept separate.

yeah so I'm not really a mod. what of it?

[Inspector Sands]

You could always set up a milkshake bar with just some blenders from Argos and ingredients from Tesco. Must be the lowest cost start up possible.

Those milkshake places where they just blend in chocolate bars with milk are springing up all over the place, I wonder how well they do? The other one I see everywhere is pick and mix nuts/chocolate raisins concessions.

As for Subway I'm probably the only person here who thinks their sandwiches are horrible. Everything I've ever had from them tastes the same and they're a rip-off, even that indistinguishable smell that spews out of every branch puts me off them. I know they provide consistency but I'd rather find a cafe round the corner and get something fresh in a baguette or bap for half the price

The same goes for Quizno's incidently, I had need to go to one last time I was in the US and I can't tell the difference between them and Subway

[Critique]

You could always set up a milkshake bar with just some blenders from Argos and ingredients from Tesco. Must be the lowest cost start up possible.

Those milkshake places where they just blend in chocolate bars with milk are springing up all over the place, I wonder how well they do? The other one I see everywhere is pick and mix nuts/chocolate raisins concessions.

We had two spring up within six months here. One was better for flavours, the other for seating and the social aspect. The one that focused on making the customers feel involved and welcome went bust, before coming back for a month or two, before their new funding was pulled. They seem to do quite well, and are indeed cheap to operate.

[Beep]

You could always set up a milkshake bar with just some blenders from Argos and ingredients from Tesco. Must be the lowest cost start up possible.

Remember, there are all sorts of environmental health aspects to consider, they cost quite a bit...