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I opened an early education facility (preschool) as a consulting exit. It’s been a long but rewarding journey. I’m considering my 2nd location.
I’d never suggest someone touch food or smaller spa like centers. It’s just too low revenue. I’d consider something like a large format gym. Unless I walk away with a few hundred thousand the risk and time and expense isn’t worth it. Stick your cash in stocks and you will be fine.
Fishbowl seems the right place to base an important life decision on! Most important thing is to read the franchise agreement and understand the economics. Will you have to buy products from the franchisor? They usually add a mark up even if you can source cheaper. The franchisor gets paid the franchise fee off the top before any profits to you, so need to make sure your biz plan is sound. Do your DD. Speak to other franchisees and understand their experience.
It’s a lot of active management and commitment so you or someone partnering should be ready. It’s harder to sell unlike RE or stocks
I haven’t looked deeply into it, but I’ve always viewed it as basically buying a job for yourself—which might be good, if it’s a job you want.
I’d be very discerning about what you choose to franchise. I foresee a lot of vacant Scooter’s Coffees in a few years for one. But Chick-fil-a looks like a money printer (and highly competitive to get approved for).
What’s your take on Scooter’s? I had looked into them back at the beginning of the pandemic and just couldn’t get behind their product personally, but I know they are very loved in Nebraska. Where are you based as well?
We’re still looking at coffee franchises and think we have one identified, but Scooter’s is expanding into our area now as well.