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Korean Job Discussion Forums
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fosterman
Joined: 16 Nov 2011
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 Posted: Sat Jun 16, 2012 10:04 pm Post subject: |
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| atwood wrote: |
| 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. |
maybe.. but you know how much it costs to open a Mc Donalds?
it's one of the most expensive franchises around. |
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littlelisa
Joined: 12 Jun 2007
Location: Seoul
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| Posted: Sat Jun 16, 2012 10:16 pm Post subject: |
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| atwood wrote: |
| 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. |
Actually, this is mostly not true from what I have read. Whether you succeed or fail they make money off you at every step. First with the buy in, then with the rent, then with purchasing/loan of equipment, then with purchasing ingredients, packaging, etc. If you fail, they don't get more money once it closes, but they have made so much off of you that they won't care much. Though the farther apart they space their franchises the more successful the franchises are likely to be, they make most money on the actual selling of the franchise license to you, so many will crowd franchises together much closer than they should for success of the business. Ideally, both of you make money, but it doesn't always work that way. Any new business, especially one in the food industry, is a risk. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Sun Jun 17, 2012 10:00 pm Post subject: |
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| I'd say don't do the same thing as everyone else. That's an assinine way to failure. There are 50 million places that sell gimbap. If you're in a small country town you're prob SOL. If you're in a bigger regional city, figure out some way to sell Korean and other foriegn food as a restaurant. Do something the other guys aren't doing. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Sun Jun 17, 2012 10:06 pm Post subject: |
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| Weigookin74 wrote: |
| I'd say don't do the same thing as everyone else. That's an assinine way to failure. There are 50 million places that sell gimbap. If you're in a small country town you're prob SOL. If you're in a bigger regional city, figure out some way to sell Korean and other foriegn food as a restaurant. Do something the other guys aren't doing. |
Many younger and even middle aged Koreans who have been abroad have developed foriegn tastes. Just look at all the restaurants that have popped up in Seoul. If you're in a regional city, you can prob do the same. Most Korean burger joints have burgers with weird tastes. Imagine if someone made a normal burger without strange tastes. Some Koreans have told me they love eating Subway when abroad. (Make your own sandwich shop with some weird Korean combinations and serve some western style ones.) Anyways, you get the picture. Be unique while still have some basic conformity. |
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atwood
Joined: 26 Dec 2009
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| Posted: Mon Jun 18, 2012 12:24 am Post subject: |
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| littlelisa wrote: |
| atwood wrote: |
| 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.
|
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. |
Actually, this is mostly not true from what I have read. Whether you succeed or fail they make money off you at every step. First with the buy in, then with the rent, then with purchasing/loan of equipment, then with purchasing ingredients, packaging, etc. If you fail, they don't get more money once it closes, but they have made so much off of you that they won't care much. Though the farther apart they space their franchises the more successful the franchises are likely to be, they make most money on the actual selling of the franchise license to you, so many will crowd franchises together much closer than they should for success of the business. Ideally, both of you make money, but it doesn't always work that way. Any new business, especially one in the food industry, is a risk. |
Does what "you read" apply specifically to Korea or franchises globally? Doing the market research regarding location is one of the things franchisees are paying for. If you're not getting that, then steer clear. But there are plenty of aboveboard franchises. For example, I don't these guys are looking to just suck you dry:
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Chick-fil-A
While many people have not heard of this fast food franchise, their simple fare enjoys a cult-like following that is worth mentioning since the following is what makes Chick-fil-A a successful restaurant franchise. The requirements to own a franchise requires a litmus test of Christian values and a life-long commitment to the brand. If an applicant survives the intense scrutiny and makes it through as many as 17 rounds of interviews, then the rest can be a major success. Excerpt from Forbes:
"Chick-fil-A pays for the land, the construction and the equipment. It then rents everything to the franchisee for 15% of the restaurant's sales plus 50% of the pretax profit remaining. Operators, who are discouraged from running more than a few restaurants, take home $100,000 a year on average from a single outlet. |
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Troglodyte
Joined: 06 Dec 2009
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| Posted: Mon Jun 18, 2012 8:34 am Post subject: |
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I'm sure that a lot of them do simply go bankrupt and close up, but I know that some owners intentionally close up shop and change business without going bankrupt.
I used to go to a noodle restaurant a few times a week. Always the same place. I got to know the owner of the place. One day I noticed that it was closed and a few days later it was being renovated. Within a few weeks there was a sports clothing store. I figured that the restaurant has gone bankrupt and that was it. A while later I went in the store to see how it looked inside and how much it was different from the noodle restaurant when low and behold, who did I see behind the cash register? The owner of the noodle shop! It turns out that he never planned on having the noodle restaurant forever. It was just what was profitable at the time. Now a sports store was more profitable so he closed the restaurant and opened a sports store.
I've heard similar things from other people as well. Some people just open a small business because that's what's profitable at the time. They have no great love of the business. It's just a matter of profit. When it's no longer the most profitable option, they close up. Maybe they open another business. Maybe not. It's just not considered a long term business. |
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fosterman
Joined: 16 Nov 2011
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atwood
Joined: 26 Dec 2009
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| Posted: Wed Jun 20, 2012 6:55 pm Post subject: |
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| fosterman wrote: |
| atwood wrote: |
| 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.
|
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. |
maybe.. but you know how much it costs to open a Mc Donalds?
it's one of the most expensive franchises around. |
There's no maybe to it if you do the work. As for expensive, you've got to spend money to make money.
But if you want to do it on the cheap, Subway is the way to go. |
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