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Nolos
Joined: 23 Oct 2011
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 Posted: Thu Jun 14, 2012 3:15 am Post subject: What Do Small Franchisee Businesses Make Here? |
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Say my wife and I want to open a somewhat well-known franchise shop or something like that. It would be in the food industry. Maybe Kimbap or dduk bokki.
What can we expect to earn doing this?
Anyone have any clue? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Jun 14, 2012 3:33 am Post subject: Re: What Do Small Franchisee Businesses Make Here? |
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| Nolos wrote: |
Say my wife and I want to open a somewhat well-known franchise shop or something like that. It would be in the food industry. Maybe Kimbap or dduk bokki.
What can we expect to earn doing this?
Anyone have any clue? |
Depending on more factors than there is room to go into here you can expect anywhere from bankrupt to 30million per month (net).
The specific franchise you are looking at should have all those numbers (and a lot more information as well) available to you in their prospective owner package. IF they don't then steer clear.
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Nolos
Joined: 23 Oct 2011
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| Posted: Thu Jun 14, 2012 3:37 am Post subject: Re: What Do Small Franchisee Businesses Make Here? |
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| ttompatz wrote: |
| Nolos wrote: |
Say my wife and I want to open a somewhat well-known franchise shop or something like that. It would be in the food industry. Maybe Kimbap or dduk bokki.
What can we expect to earn doing this?
Anyone have any clue? |
Depending on more factors than there is room to go into here you can expect anywhere from bankrupt to 30million per month (net).
The specific franchise you are looking at should have all those numbers (and a lot more information as well) available to you in their prospective owner package. IF they don't then steer clear.
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Sorry, what does the bolded mean? |
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isitts
Joined: 25 Dec 2008
Location: Korea
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| Posted: Thu Jun 14, 2012 3:40 am Post subject: Re: What Do Small Franchisee Businesses Make Here? |
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| Nolos wrote: |
| ttompatz wrote: |
| Nolos wrote: |
Say my wife and I want to open a somewhat well-known franchise shop or something like that. It would be in the food industry. Maybe Kimbap or dduk bokki.
What can we expect to earn doing this?
Anyone have any clue? |
Depending on more factors than there is room to go into here you can expect anywhere from bankrupt to 30million per month (net).
The specific franchise you are looking at should have all those numbers (and a lot more information as well) available to you in their prospective owner package. IF they don't then steer clear.
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Sorry, what does the bolded mean? |
Means run away, avoid, etc. |
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Nolos
Joined: 23 Oct 2011
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| Posted: Thu Jun 14, 2012 3:46 am Post subject: |
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| Thanks =) |
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Jonephant
Joined: 05 Jul 2010
Location: Seoul
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| Posted: Thu Jun 14, 2012 4:36 am Post subject: |
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| My friend opened a Dunkin Doughnut franchise a little under a year ago. She just closed down. |
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Nolos
Joined: 23 Oct 2011
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| Posted: Thu Jun 14, 2012 4:50 am Post subject: |
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| Jonephant wrote: |
| My friend opened a Dunkin Doughnut franchise a little under a year ago. She just closed down. |
Why? Bad location or she didn't do her homework? |
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Jonephant
Joined: 05 Jul 2010
Location: Seoul
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| Posted: Thu Jun 14, 2012 6:26 am Post subject: |
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| Nolos wrote: |
| Jonephant wrote: |
| My friend opened a Dunkin Doughnut franchise a little under a year ago. She just closed down. |
Why? Bad location or she didn't do her homework? |
The location was in a subway station. Some people are lucky, some aint. |
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detonate
Joined: 16 Dec 2011
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| Posted: Thu Jun 14, 2012 7:36 am Post subject: |
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| Jonephant wrote: |
| Nolos wrote: |
| Jonephant wrote: |
| My friend opened a Dunkin Doughnut franchise a little under a year ago. She just closed down. |
Why? Bad location or she didn't do her homework? |
The location was in a subway station. Some people are lucky, some aint. |
Why do you think her venture failed, aside from bad luck? |
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Jonephant
Joined: 05 Jul 2010
Location: Seoul
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| Posted: Thu Jun 14, 2012 2:59 pm Post subject: |
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| detonate wrote: |
| Jonephant wrote: |
| Nolos wrote: |
| Jonephant wrote: |
| My friend opened a Dunkin Doughnut franchise a little under a year ago. She just closed down. |
Why? Bad location or she didn't do her homework? |
The location was in a subway station. Some people are lucky, some aint. |
Why do you think her venture failed, aside from bad luck? |
It definitely wasn't because she didnt do her home work. She had worked in the restaurant/catering business for 10 years. Dunkin Doughnuts is a major franchise and they gave her clear instructions on how to run a successfull business. The franchise fee was very expensive also. Opening any small businesses is very risky, let alone the food business. I walk from Sinchon station to the bakery where i work in Hongdae everyday and its shocking to see the amount of businesses that have closed in the last 6 months. Its hard to notice though since they close down one week and the next week they are open as something else. |
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fosterman
Joined: 16 Nov 2011
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| Posted: Thu Jun 14, 2012 5:26 pm Post subject: |
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Franchise business are designed for the Franchiser to make money
not the franchisee. that's how the model is designed.
of course they want you to succeed and they help out best they can
but their model is to get people to sign up and buy their business.
in regards to dunkin donuts or Kimbad or Ttopoki place.
you need HIGH VOLUME sales so you need a good location. as your gross on each item is very low.
a donut 1200won on average? maybe each customer spends 3000-5000 on average, minus your franchise fee from that cost , operation costs etc..
your profit margin on a donut is very small.. 1 dollar?
kimbab is same..
this is why so many bakeries go under or just struggle.
if you want to go into business you need to look at a business where your profit margins are higher.
burgers, Steak, western food, as western food is perceived as luxury food
so you can charge 12.000 won for a burger which costs you 2 dollars to make, so your profit is 10 dollars! most customers drink or get a side order too, so that's about 15-20 dollars per person.. much higher than your 3000 won per person.
in case of a franchise store in Korea, then you will need to be in a good location.. and good location has two prices..
1: an existing location which is a good location will mean higher premium cost.
2: a new town with many apartments, you can secure a new location as you will be the first people in there so no premium, means less capital at the start and saves you money, then you can sell the location to the next person.
A franchise is ok for people who don't want the headache, but just figure out your budget, and your potential net profit? how many items do you need to sell to make what you need compared to let's say a coffee shop, or a burger bar, or a bar etc.. find out which is the smartest move for you.. don't just rush into something without figure out the sales figures first. |
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motiontodismiss
Joined: 18 Dec 2011
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| Posted: Thu Jun 14, 2012 7:28 pm Post subject: |
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| Oh another thing, NEVER go into debt to start a franchise business. Ever. |
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atwood
Joined: 26 Dec 2009
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| Posted: Thu Jun 14, 2012 7:57 pm Post subject: |
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| fosterman wrote: |
Franchise business are designed for the Franchiser to make money
not the franchisee. that's how the model is designed.
of course they want you to succeed and they help out best they can
but their model is to get people to sign up and buy their business.
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If you don't make money, then they don't make money. Of course, all franchises are not created equally, but owning a McDonald's, for instance, is a sure path to wealth, although you've got to work for it. |
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luckylady
Joined: 30 Jan 2012
Location: u.s. of occupied territories
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| Posted: Sat Jun 16, 2012 3:40 pm Post subject: |
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| a lot of franchises also close because they didn't perceive the amount of rent and taxes they'd have to pay - commerical businesses are often assessed according to their profits; the more they make, the higher the rent. some choose to fold or just move elsewhere rather than keep getting shafted by a greedy landlord, not to mention the tax man |
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fosterman
Joined: 16 Nov 2011
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| Posted: Sat Jun 16, 2012 10:02 pm Post subject: |
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| luckylady wrote: |
| a lot of franchises also close because they didn't perceive the amount of rent and taxes they'd have to pay - commerical businesses are often assessed according to their profits; the more they make, the higher the rent. some choose to fold or just move elsewhere rather than keep getting shafted by a greedy landlord, not to mention the tax man |
this is so true, building owners see the next door guy doing good business in the building, that means he believes his building is just as good, there for he can raise the rent to as high as the guy is paying next door, doesn't matter the guy next door is creaming it due to his business being popular.
the greedy landlord will just tell you, "it's your fault you can't pay the rent with your business. you need to operate your business better, if you don't want to pay the new rent price. then leave"!
so they leave and shop stays empty for a year, the landlord will just wait for some rich idiot who thinks he can make it. and cycle continues.
landlords don't care about you. they only want money for nothing.
why you think you can't sign a lease more than 2 years here?
why you think you have to pay 100.000 dollars deposit?
hahahahahaa |
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