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A "Subway" franchise would be easier. Less rent, fewer employees, and you can open them two miles apart and they would not steal business from each other.
The problem is that MOST Subway franchises are not making a lot of money for the franchisees. There are any number of franchisee websites where many are complaining that there is little profit once you consider the constant discounting, charges from the franchisor and the requirement that they use the franchisor's
suppliers.
Unbeatable brand name, food that sells itself, and all marketing is handled on a national level so individual owners do not have to worry about that. I have rarely heard of unprofitable McDonald's - the average take home net profit per year for a franchise owner is $200,000. I wouldn't mind even working in the store itself as day manager, because it's different when it's your property and your profits.
The problem is you need at least $500,000 of NON-borrowed funds, and up to $1.4 million in certain high traffic locations.
Conversely, I could afford to buy a Chik-fil-A franchise right now for $5000 (that's really all you need), but I would never meet their ridiculous (read: religious, conservative) owner/operator requirements.
The problem is that MOST Subway franchises are not making a lot of money for the franchisees. There are any number of franchisee websites where many are complaining that there is little profit once you consider the constant discounting, charges from the franchisor and the requirement that they use the franchisor's
suppliers.
It costs A LOT more than $500k to start a McDonald's franchise first of all. And even if you did have the $1.5 mil average going price, you'll have to wait in line because MCD doesn't build new units unless there are no units in the area. What city or state DOES NOT have a McDonald's? So, you'd have to wait in line for one to open up even if you had the money so it's not as if you just wished it.
Franchises typically don't make a ton of money, but it's enough and a good base salary for an owner. It's not until you start running your second, third and forth unit that you'll see real money. For example, if you only had one store and you netted only about $3,000 a month. Not a lot right? Especially if you poured in $400,000 to start it.
But what happens when you have 10 units and a manager operating each one and all you had to do was check their weekly reports? Now you're banking $30,000 a month net. Time, lots of hard work, and lots of bank loans against your first store, then against your second, then against your third unit, etc. and eventually you'll get there. That's how franchises work. People come together to build a brand.
It is not apples to oranges. MCD food I agree is not good to have 3 times a day 7 days a week, however if eaten in moderation and varied what you eat (ie the oatmeal is VERY good), its a cheap quick food to buy. Plus the fact, who are you to dictate to me what choice I should make? If I want to have a mcdouble, its my choice.
He's not dictating what anyone should do. But his conscience would not allow him to sell garbage. Just as some people wouldn't want to sell alcohol or tobacco or harmful illegal drugs.
Furthermore, it's easy to sit back and say, it's all our choices. But our choices are affected by our environment. If our food environment is chock full of unhealthy choices, and the healthy options take more effort to find, 99% of us are going to consume more of the unhealthy food than we would otherwise. We all delude ourselves into thinking "I'm not like that", but it is a delusion. Just look at the results. Since we started this "fast food" culture 50 years ago, we've gone from 1/3 of the population being overweight to more than 2/3 being overweight and 1/3 being obese.
I would rather keep the 500k conservatively invested, then get a manager job at McDonalds and even only making 100k a year combined I still don't have any risk of losing the 500k with a lot less headaches!
He's not dictating what anyone should do. But his conscience would not allow him to sell garbage. Just as some people wouldn't want to sell alcohol or tobacco or harmful illegal drugs.
Furthermore, it's easy to sit back and say, it's all our choices. But our choices are affected by our environment. If our food environment is chock full of unhealthy choices, and the healthy options take more effort to find, 99% of us are going to consume more of the unhealthy food than we would otherwise. We all delude ourselves into thinking "I'm not like that", but it is a delusion. Just look at the results. Since we started this "fast food" culture 50 years ago, we've gone from 1/3 of the population being overweight to more than 2/3 being overweight and 1/3 being obese.
True but also consider things like sedentary jobs/lives and massive sugar intakes today compared to 50 years ago!
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