How do franchise agreements work for fast food restaurants?
492532
Let's look at Subway, which Entrepreneur Magazine ranked as the #1 franchise for 2006. Their requirements are as follows:\n\nTotal investment: $70K-220K\nFranchise fee: $12.5K (this is the upfront fee)\nOngoing royalty fee: 8% (this is your regular monthly fee)\n\nTo be accepted as a franchisee, they require \nNet worth requirement: $30K-90K\nCash liquidity requirement: $30K-90K\n\nAs a franchisee, they will provide you with the following in terms of training and support:\n\nTRAINING\nAvailable at headquarters: 2 weeks \nTraining available in Australia, China, Germany, India, Montreal, Canada & Miami, FL\n\nONGOING SUPPORT\n\nNewsletter\nMeetings\nToll-free phone line\nGrand opening\nInternet\nSecurity/safety procedures\nField operations/evaluations \nPurchasing cooperatives \n\nMARKETING SUPPORT\nCo-op advertising \nAd slicks \nNational media \nRegional advertising \nOther marketing support: Local store marketing
75077
You get food that is inexpensive and convenient.\nYou know what to expect when you go in. The product is going to be pretty much the same whatever franchise you go to. \n\nYou get food that isn't all that healthy.  You also support a large homogenous chain over local establishments that offer something different.
958304
Total Investment: $506,000-$1,600,000\nInitial Franchise Fee: $45,000\nRoyalty Fee: 12.5%+\n\nYou have to buy a McDonald's franchise. In order to qualify for a conventional franchise you have to have $175,000 (not borrowed). Your total costs to open the restaurant, however, will be anywhere from $430,000 to $750,000 which goes to paying for the building, equipment, etc. Forty percent of this cost has to be from your own (non-borrowed) funds.  You'll pay an initial franchise fee of $45,000 directly to McDonald's. The other costs go to suppliers, so this is the only upfront fee you pay to McDonald's. Then, you'll go through a rigorous nine-month training period where you'll learn about the McDonald's way of doing things -- things like their standards for quality, service, value, formulas and specifications for menu items, their method of operation, and inventory control techniques. You'll have to agree to operate the restaurant from a single location, usually for 20 years, following their guidelines for decor, signage, layout and everything else that makes McDonald's McDonald's.\n\nOnce you've completed training and are ready to go, McDonalds will offer you a location they've already developed. The exterior of the building will be complete, but you will have to take care of interior additions such as kitchen equipment, seating and landscaping. You'll get constant support from a McDonald's Field Consultant, who can advise you on details and will visit regularly. You'll pay McDonald's a monthly fee of 4 percent of your sales, and either a flat base rent or a percentage rent of at least 8.5 percent of your sales. How much money you make depends on many things, including the location and its popularity, the efficiency of your operating costs, and your ability to manage and control the business.
793055
i use this site for info and it has links on it for franchises, where to get info on them and whats for sale.\n\nhttp://www.businesslink.gov.uk/bdotg/action/layer?r.l1=1073861225&r.s=tl&topicId=1073866247\n.
129596
Both these answers are basically correct, just one part left out: If the player signs an offer sheet with another team, his current team gets a chance to match it.\n\nThere is also a "Transition Player" tag a team can slap on a player. It is the same as a "Franchise Player", except two differences:\n\n1) A Franchise Player gets a salary of the average of the top 5 players for that position or 120% of last season's salary whichever is greater. A Transition Player gets a salary of the average of the top 10 players for that position or 120% of last season's salary whichever is greater.\n\n2) If either type of player signs with another team, his current team gets a chance to match or beat the offer. If they do not match it, the team gets compensated with two 1st round draft picks for a Franchise Player, and no compensation for a Transition Player.
1176216
FRANCHISEE*********LETS YOU   "OWN"   THAT   BUSINESS\n\nLICENSEE*******LETS YOU  "OPERATE"  THAT  BUSINESS
78651
Not sure how doable that is.  First of all the business on it's own has to be totally successful.  It must be something that people will pay you for and thus make you and your small busines into a sucess.  Then only then if you are so darned sucessful that you can't handle all the work load - you may be able to get others to do it with you under your name - they would buy into your franchise.  Who in their right mind would buy into a franchise if it weren't already known and successful?  So you must be a success before you an even THINK about frachising.  \n\nGood luck
766175
Franchise's are a money pit, which means they take all your saveings and leave you with nothing, unless you can buy in, ride the storm for a year and sell it to another sucker, i would stay away from franchise's. Unless it's McDonalds.
594444
It boils down to dollars and cents. If the brand franchise is a popular one, you may not make the dollar targets you aspire simply because of popularity. Otherwise if the brand franchise is for a new or expanding market, then you stand to gain.\n\nYour investment vs how much you generate and how much you profit you gain should help you determine if this is the right business model. \n\nI have seen franchises fail simply because people assume the brand is strong. Do your math and research.
998063
They are franchises. you have to apply and undergo training from subway and pay them quite a bit of money. They have very strict rules for example the bread cannot be used after a certain amount of time.
428388
I have heard of them...are they really new? New franchises usually don't have all of the kinks worked out for their system. Do very deep research no matter what franchise you choose. I highly recommend hiring a FRACNHSIE ATTORNEY when the time is right. There are extensive legal documents to sign. I work for a staffing franchise called LINK so I can help you if you like. Let me know...
126301
If you have a brilliant recipe for fast food that will differ you from your competitors, such as McDonalds KFC, etc; then you have it big as soon as you can convience an investor which is your inventory. And your worth an investor with big pockets to pay for all necassary business activites such as Marketing Advertising, or you could take a loan from your bank, but you will also have to convience them such as business plans, taste actual product.
478680
Try findlaw.com, see link below to their Intellectual Property section.   But be warned, Findlaw culls the public company filings, and the contracts are way, way longer than you will likely want.  But it's better than nothing...... just looking at Findlaw, there was one under Alamosa (it was between Alamosa and Sprint.)\n\nBe aware that if you license your name to someone and they pay you, and you offer them any kind of assistance in starting or operating their venture, you may fall within the FCC's "Franchise Rule."  Look it up at www.fcc.gov.  The Franchise Rule requires disclosure of business plans and risk factors and financial info through a UFOC (uniform franchise offering circular.)\n\nAlso, many states have "mini-fcc's" that impose filing requirements, if I'm not mistaken some of those may be ongoing (yearly) requirements....\n\nI realize you may not think it's as intense as a franchise, but regulators (especially state regulators) may take a different view.  Don't be caught unaware, you should hire an atty with franchise experience, good luck.
187902
Rent is fixed.  If you sell one burger or a million, it won't change the rent.  You'll have to do the math on the other stuff.
265579
Franchises are good if you have good to fair credit and the upfront franchise fees as well as first 6 months of operating cash flow available. Be careful and check your area competition first, always request the a copy of the franchise UFOC prior to signing anything they are required to give this to you prior to signing, this will disclose all hidden fees and charges you will have. I own a franchise and just about folded my business due to cash needed initially the first year and finding employees who help.  Franchisors only give you the tools to gain the advantage over your competitors but you must make sure that you follow thru with the tools they give you. Remember that you will also have fees monthly to pay to the franchisor and you are limited sometimes on territory area and product line.  I would not purchase a franchise if I had to do it all over again, as the money that I spent initially and fees charged monthly I could have made more doing it myself. Owning a franchise requires you to have higher gross sales as well as higher costs to your customors to maintain same profit margin as your competitor who does not have all the extra overhead. The key to any business is a plan for your operation, marketing, sales, production/employees.  Hope this helps
179216
The benefits of franchising are:\n\n1. Risk is minimized, since a well-established franchise has a proven business method with established products or services. \n\n2. Many franchise organizations also provide extensive assistance in terms of marketing, advertising, even managerial support. Oftentimes, management training and follow-up assistance are provided.\n\n3. You can realize cost savings on inventory items, supplies and equipment due to bulk purchase orders made by the franchisor, which in turn is passed on to franchisees.\n\n4. Some franchisors also assist the franchisee in securing financing, while some provide the funding themselves. \n\n5. Franchisees find it easier to convince banks and other lenders to provide loans because franchises are less risky than start-up businesses. \n\n6. Support can also be given in finding the right location.\n\n7. Some provide the layout, display, facilities and business techniques that have already proven successful in previous operations.
926374
one of a few ways..but I know one works\nyou have to have proof your moving out of their operating area, so as you can see, they can not serve you, so the contract has to be broken....this works...\n\ntell them you lost your job and you AVE to cut back on ALL things....period..no money to pay..\n\ngood luck\nsmile