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Young And Looking to Buy A McDonalds
Dear Franny
I am a first year college student who dosent want to graduate and make the average 30k-50k a year i have always wanted to start my own business and after a bit of research via the internet i have found that buying a franchise would be the best step for a person in my situation. The problem is this, where do i start?
Now i have already did an extsensive amount of research on the Franchising business i know that McDonalds asks for 25% of the cost of the store and they also require a 9 week training course which route would be the best to take in getitng a loan for start up $
- forums:
Future McMillionaire
Future McMillionaire:
Good for you. What kind of grades do you make? There’s a lot of truth to the old saying A students work for B students in companies owned by C students. And furthermore you didn’t go to college to make 30 to 50K, but there’s a lot to be said for owning your own business.
Take every business class you can! Also take a variety of classes which will help in various aspects i.e. Public Relations, Human Resources, Business Law, Psychology, Advertising, Sales & Marketing, Accounting, Finance, and the list goes on….
I’d be interested in learning how you determined that Franchising would be the best step for “a person in my situation”. What is your situation? Personally I think Franchising is the best thing to ever happen to business, however….not everyone is suited to be a franchisee. Bill Gates, Henry Ford, Ray Kroc, and Victor Kiam probably would not have been very good franchisees. However 2 of the 4 succeeded as Franchisors.
As for McDonalds, it’s proven to be a great product and can provide tremendous success. With great proven product comes the high cost of entry. The 25% which you quoted is to acquire an existing location and must be from non-borrowed sources. A new store requires 40%. As for their training, they probably have THE BEST, bar none!!! There are also many other good concepts which have solid track records, which require less in the way of initial capital. And the almost GAURANTEED SUCCESS of McDonalds of the past is just that, THE PAST. It’s a different market today.
As for obtaining the loan, protect your Character and your Credit and build Collateral!! SAVE – SAVE & SAVE!!! The number 1 rule in any business is that everything costs twice as much and takes twice as long!!! Start developing your business plan now! Think about what it is you want to accomplish, why you want to accomplish it, and how you’ll go about it. There are many good organizations out there which can help you ‘package your loan’ they don’t lend money, but they know those who do, and know how to ‘package’ your unique situation so that you have the highest probability of securing the needed funding.
I hope that this helps. If I can be of any additional help, just post your questions here at Dear Franny, a Blue Maumau exclusive!
Franny
P.S. Finish School, you have lots of time....and I'm sure some A students own companies too! I'm just not one of them!
FranMillionaire: Call me.
Franmillionaire:
Call me.
See you on the veranda!
Millionaire Richard Quick, Esq.
Website: FranWorst.com
franworst@yahoo.com
Ray Kroc
"Ray Kroc, and Victor Kiam probably would not have been very good franchisees."
Ray Kroc was a licensee of McDonalds.
Michael Webster PhD LLB
Psychology of Compliance and Due Diligence Law
Thanks Franny Your reply
Thanks Franny
Your reply really helped haha i am an A student in college however i was a C student all throughout high school. (i dont no if that makes a difference to the old saying)
Could you list some other concepts which require less initial capital and would me a smart move for a first timer in buying a franchise.
Also how many years will i have to establish my credit and build collateral before i am able to present a business plan to a lender
P.S. This site is great!
Ray Kroc --- and his genius!
Yes, Mr. Kroc was a licensee, but his intent was never to own and operate a McDonalds but to set them up and sell them milkshake mixers. His true genius was not in being a GREAT franchisee but having a great philosophy for how to build a great franchise system!
…the philosophy of our founder, Ray Kroc ~ best described in the words of his authorized biographer, Mr. John F. Love, in his book entitled "McDonald's - Behind the Arches": "The essence of Kroc's unique but amazingly simple franchising philosophy, was that a franchising company should not live off the sweat of its franchisees, but should succeed by helping its franchisees succeed.......In the end, the genius of Ray Kroc was that he treated his franchisees as equal partners."
Read More
In 1948 two brothers, Richard and Maurice McDonald opened a burger and fry place in San Bernardino, California. They kept things simple and used an assembly line to help sell a lot of those burgers and fries and a lot or milkshakes, too. In fact they sold so many milkshakes that they attracted the attention of Ray Kroc, the sales rep for a company that made a mixer that could crank out five milkshakes at a time. The McDonald brothers had ordered eight of them. Kroc visited the McDonald's in 1954 and he liked what he saw. He liked it so much that he opened a McDonald's in Des Plaines, Illinois in 1955. Kroc's plan was to open McDonald's stores all over the country. He figured that way he could sell eight of his mixers to every store.
By 1961 he'd set up 228 McDonald's restaurants. He knew he was on a roll. But the McDonald brothers weren't as excited as he was. Kroc talked them into selling out for $2.7 million dollars.
Read More
My point was simply that Ray Kroc was a Great Franchisor, he never really proved he would have been a GREAT franchisee. As we all know the skill sets of owning and operating a business do not necessarily translate into being a great FRANCHISEE or FRANCHISOR! History tells us Mr. Kroc was a Master Franchisor!
FranMillionaire...First Steps First!
I guess that averages out to about a “B” a good indicator for a prospective franchisee!
SURE, I could. But that would be like me saying you should live in, Ft. Collins, Colorado, #1 on Money’s 2006 Best Places to Live. But I’ve failed to take into account that your fiancé lives in Boca Raton, FL and refuses to move far from family, that you both hate cold weather, love to play golf, have no interest in skiing, and love to frequent museums.
I assume and hope that you intend to finish college, so we’re looking 3 years down the road. I’d encourage you to grab a position with a franchisor coming out of college for a year or three. So now we’re looking 3 to 5 years down the road. It’s doubtful that what I’d recommend now would be I’d recommend then. You need to start by looking at the life that you want to build, and answering questions like:Geographically where do you want to live?
What days of the week do you want to work?
What hours of the day do you want to work?
How many employees do you want to have?
How much money do you want to earn?
Do you want to work with individual consumers or businesses?
Do you want to own and work in a franchise or manage multiple units?
What do you love to do?
What do you hate doing?
What do you consider to be your top 3 talents?
What do you consider your least favorite things to do?
And the list goes on and on and on.
However we ultimately begin to weed through the more than 85 industry categories currently franchising and the some 280 sub categories, until we eventually discover the top 5 franchise categories which would allow you to accomplish your personal and professional goals and aspirations.
With the top 3 to 5 industries identified you can begin to tailor your education, and pursue career opportunities with the leading franchisors in those particular categories, and begin identifying possible franchisors with whom you’d like to become associated with.
I takes a lot longer to build your credit and nest egg than it does to mess it up. So the real key is to keep it clean, Save-Save-Save, and keep consumer debt to a minimum. By knowing what you want to do, developing a plan, and implementing that plan you’ll quickly begin to accomplish your goal of owning a franchise, owning the right franchise, and profiting from the franchise. The real benefit you have is TIME. Time to prepare, time to plan, time to implement, and when its time you’ll be READY TO SEIZE THE RIGHT OPPORTUNITIES.
Stay in touch, and if you answer the above questions here in the forum and/or by Blue Maumau email to me I’ll help you begin to identify the right industry categories and then the right franchise opportunities.
Best Wishes,Franny
McObstruction
FranSynergy,Yes, yes: all true. But what they choose NOT to do, convicts them.
Thirty Year Policy Record
They have aggressively interfered with any greater than disclosure-only franchise law and stomped their little feet when elected officials have the actual nerve to represent their constituents (and not the corporate agenda: Iowa).
Sins of Omission and Commission
Corporations and individuals should be judged for not only:
Seen it up front, champ: they're a fully knowing, key player in defeating any relationship law. Of course, when they could deny the abuses, they joined with the rest of Big Franchising to say that even disclosure laws were unnecessary.
Bullying
They have a shameful record of consistently enabling (ie. support of others behaviors) every other franchisors' opportunism. Perhaps they are not bullies themselves, but they create the environment for others to bully.
Barbara Coloroso would classify them perhaps as bystanders but I think that lets them off too easy (her book). There is an argument to make that they are complicit in sabotaging public policy and exercising undue influence.
Old Guys v. Hacks
I knew some of the old licencees, 1972 to 80. I was 1st assistant with the 1st Canadian franchisee advisory council president. That is, until his 3 stores were taken away.
The guys now? They know whose what is in whose pocket. Noteworthy for their cowardice and hubris .
Individual Responsibility
It takes a special type of individual to sit on their hands and know that their continued wealth results in many innocent people losing their life savings. It's a gift watching these crucifixions.
Some people think that the worst form of bankruptcy is economic. Think (and think) again.
If the minimum measure of a life is service above self, as these pesky Rotarians claim, they can't reach this very low hurdle.
Sometimes money Costs too Much
At least the Canadian auto dealers got something for promising not to support any provincial franchise laws. That betrayal was written right into their dispute resolution agreement with the manufacturers. You have to respect that they were officially neutral.
There may not be justice in this world for indirectly impoverishing others but I have it on good authority that, as Ricky used to say: Lucy, you got some 'splainin; to do.
Respect
Heroes? No, not by a long shot. Especially when I compare their treachery with the dignity and good faith of hundreds of others I have met in far worse circumstances.
Fran: Help me out. Tell me how I can respect anyone who doesn't respect themselves?
Les Stewart
Degree in Hamburgerology
BOC & Silver Hat, 1978
FranchiseFool.com
cafo.net
Geographically where do you
Geographically where do you want to live - California or New YorkWhat days of the week do you want to work - I would like to be in a position where i myslef would not have to perform the day to day tasks
What hours of the day do you want to work - as many hours as it takes to make the company run smoothly
How many employees do you want to have - A Store Manager and the enough employees where the store runs by itself
How much money do you want to earn - 80k to 100k first year
Do you want to work with individual consumers or businesses - businesses
Do you want to own and work in a franchise or manage multiple units - manager multiple units
What do you love to do - make music so i would use my income from the franchise to start up my own record label which is my dream
What do you hate doing - any hands on Maintenance work
What do you consider to be your top 3 talents - 1.leader 2.team work 3.people person
What do you consider your least favorite things to do - Any hands on Maintenance work
FranProdigy...
Hey FranProd...
I got you're email....and have just been COVERED UP....I saw you're post and said.....Ooppsss I better let FranProd know that I got it...and I'm formulating the proper response. Check your email tomorrow afternoon. I'll post a public "generic" response here and send a more personalized and detailed response to your email.
Glad to see you've moved from guest to one of the Newest members. WELCOME!
FRANNY
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