Franchise

[Casanova.]

Hi,

Lately I've been trying to convince my parents to open a Franchise. My dad wants in on Tim Hortons but I do not think they are allowing anymore franchises. Does anyone have experience on starting a Franchise?

[grant]

Yes.

[howaboutthis]

Yes.

There are people who know how to start a franchise. Do you have capital to invest? what type of Franchise do you think you will like running? The Franchisor will be more than happy setting up one for you if you meet their minimal criteria. Good luck

[field2282]

There are people who know how to start a franchise. Do you have capital to invest? what type of Franchise do you think you will like running? The Franchisor will be more than happy setting up one for you if you meet their minimal criteria. Good luck

Do you know what it costs for a Little Caesar's?

How much do banks cough up?

[flafson]

Simple, less risk = higher capital investment.

In reality franchise only cost the agreement which is a standard one time thing, even though it can cost 5-20 grand to make, you do it one time and that's it.
Then the company wants to make money so they lay out what they want in return. A small company would maybe want some royalty fees and % from sales while big company like Tim Hortons might want something like half a million fee just cause they can and then you have to buy from them at a profit to them and of course the % from sales.

Why would a company go that route? Good employees are very hard to find, if you find a franchisee he is going to be the best employee/manager because he's invested in it and if he won't take care of it, he will lose his pants.

Also, those franchise agreements are very solid. They usually have clauses saying if you do something wrong (e.g catch you buying plastic cups from someone else) then they will take the business away from you and all the costs are on you.

[grant]

Simple, less risk = higher capital investment.

I disagree with that: there are plenty of high risk franchises that require millions up front; in fact, i'd suggest that they're actually MORE risky because high capital costs usually correlate to high operation costs.

In reality franchise only cost the agreement which is a standard one time thing, even though it can cost 5-20 grand to make, you do it one time and that's it.

It all depends on the agreement. Franchise purchase fees can start from $0 although for restaurants the bottom is usually $30,000, and i've seen them go up to $65,000. This fee is usually for a 20 year franchise agreement, at which point you may able to purchase another agreement at the then-current price.

A small company would maybe want some royalty fees and % from sales while big company like Tim Hortons might want something like half a million fee just cause they can and then you have to buy from them at a profit to them and of course the % from sales.

i think you are confusing the franchise fee with capital costs of your restaurant. Yes Tim H says it will cost nearly half a million to fully build out a restaurant but less than a tenth of that is the franchise fee.

Also, those franchise agreements are very solid. They usually have clauses saying if you do something wrong (e.g catch you buying plastic cups from someone else) then they will take the business away from you and all the costs are on you.

Depends on the franchise. Some restrict suppliers, and some don't. The thing with restaurant franchises is: usually they negotiate pretty good deals on behalf of the chain, as well as do all the hard work of sourcing & QAing product, so it very rarely would make sense to even contemplate looking for another supplier.

[SoundMan]

I hope your family has tons on money

I was shocked at how much a subway is or even a gas station was

[flafson]

Gas stations have a lot of income.

Credit card processing companies usually give them a special rate because they process more than 250k a month.

[Applecart]

Gas stations? Hell, no! They hardly make money. Go to your local agent and you will see so many gas stations up for sale. These days, no one pays with cash and all those credit card and debit card fees eat away already razor-thin margin on gas. Unless you are one of those mega ones that sell more than five million liter, you won't even net enough money to cover annual environmental assessment fees. People think that gas stations make tons of money when they see cars lining up despite high gas price. They are wrong because they don't understand the business model of retail gas station.

[flafson]

Gas stations? Hell, no! They hardly make money. Go to your local agent and you will see so many gas stations up for sale. These days, no one pays with cash and all those credit card and debit card fees eat away already razor-thin margin on gas. Unless you are one of those mega ones that sell more than five million liter, you won't even net enough money to cover annual environmental assessment fees. People think that gas stations make tons of money when they see cars lining up despite high gas price. They are wrong because they don't understand the business model of retail gas station.

Well, i only made a comment that they get a special rate, i guess it makes sense after reading what you said.

[erexa]

A friend of mine wants to start (I don't know if this is a right word or maybe buy) a Tim Hortons franchise. He has a capital to invest (up to 0.5 mln) and I red on their website that this is how much it will cost to start a franchise. He asked me to post here which I am doing on his behalf.

What else do they require ?

Who knows?

And how the process works?

Can we choose location or basically they will give us several available locations and I have to choose one of them?

Any help might be helpful, please he has never done this so new in this. And neither me to suggest or guide him...

[pbxphone]

Gas stations? Hell, no! They hardly make money. Go to your local agent and you will see so many gas stations up for sale. These days, no one pays with cash and all those credit card and debit card fees eat away already razor-thin margin on gas. Unless you are one of those mega ones that sell more than five million liter, you won't even net enough money to cover annual environmental assessment fees. People think that gas stations make tons of money when they see cars lining up despite high gas price. They are wrong because they don't understand the business model of retail gas station.

Correct me if I am wrong...but the real money in the Gas Station business is the convenience store. The Gas sales profit helps run the business...but the real profit comes from the sales at the convenience store. And thats what makes the business lucrative !

[flafson]

A friend of mine wants to start (I don't know if this is a right word or maybe buy) a Tim Hortons franchise. He has a capital to invest (up to 0.5 mln) and I red on their website that this is how much it will cost to start a franchise. He asked me to post here which I am doing on his behalf.

What else do they require ?

Who knows?

And how the process works?

Can we choose location or basically they will give us several available locations and I have to choose one of them?

Any help might be helpful, please he has never done this so new in this. And neither me to suggest or guide him...

Why don't you just contact Tim Horton's head office and let us know?
From general experience, it's more about them picking you rather than you picking them. In other words, my guess is you're going to call them, they are going to take your information and if you are lucky they will setup a time to get all your financial history from you. My guess is, you will have alot to prove to them beyond having money. Fact is, there are alot of money with at least 500k and they would probably prefer to give locations to people they are already working with rather than new people.

[erexa]

Why don't you just contact Tim Horton's head office and let us know?
From general experience, it's more about them picking you rather than you picking them. In other words, my guess is you're going to call them, they are going to take your information and if you are lucky they will setup a time to get all your financial history from you. My guess is, you will have alot to prove to them beyond having money. Fact is, there are alot of money with at least 500k and they would probably prefer to give locations to people they are already working with rather than new people.

yeah i red several other threads in this forum meanwhile and already got that.

the problem is this friend has lots of money but barely speaks English which assume is a problem, since he and his partner (I see Tim Horton's require 2 people in partnership) will be running the store. And his partner from my knowledge is not an English ace too

So I guess their chances of being picked by Tim Horton's are close to zero. Anyways I will try to call and gather some general info.

Thanks for the help.

[flafson]

Well, you never know.

If i were Tim Hortons i would care about financial stability the most, nothing else.
Most people who work in Tim Hortons tend to be immigrants or at least that's the case in the GTA, so language might not be that big of an issue.
Think about it, have you ever seen the actual owner of a Tim Hortons branch before? I have only once so they don't tend to be taking much of an active role specially because the whole business model of Tim Hortons makes it so.

My guess is they might have so many "good" people lined up to take up locations that the competition for getting a place is really fierce that they can just rule out people for no real reason.