jwb

You know how risky it is to start a business on your own? The vast majority fail. A franchise is a trade off that doesn't give you that kind of equity but like you noted the financial barrier is much lower, you inherit an existing brand and infrastructure from the franchise so it's a much safer bet albeit with lower returns.

I dunno what you mean by name the company. It is chick fila. I don't know what you mean by different deals but afaik what you earn as an operator is tied to the profits you bring in.

The Batlord

No you just take some classes every now and then to maintain a fiction. You're a schlub.

Ah it is Chik Fil A. And it is a very different deal than most other franchises. I generally saw that you'd pay the parent company something like 5% of your revenue as opposed to 50% with Chik Fil A, which is quite a leap, along with 15% royalties and while I don't know what that means it doesn't sound like peanuts. Also in a traditional franchise you own the business and can sell it for fat stacks or pass it on to your kids, but Chik Fil A owns everything, so you can't sell it and your kids can't inherit it, so you're essentially buying a reasonably cushy job (Chik Fil A franchisees make on average 200k).

Not a bad deal if you're poor and have no other prospects but it's a vastly different level of opportunity than buying a McDonald's franchise since you can buy more than one McDonald's franchise and can sell them or pass them on to your kids.

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The Batlord

Like a facade of a student.

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jwb

I told you I have no idea how it compares to other franchises. The only things I've heard about getting a franchise are directly from my sister's situation.

I would imagine even those other franchises there is a certain ceiling on how much you can ultimately make compared to if you had your own successful start up and brand... You don't get anything in this world for free. That's what I meant about it being a trade off. Like you said chick fila is apparently unusual in terms of how much equity and control they maintain and it's also a much lower financial investment that you need to make. So yeah... I feel like that pretty much lines up.

And yeah dude we grew up poor. 200k is a lot of ****in money.

The Batlord

I mean I work for a BK franchisee that owns over a thousand stores, operates all over the Eastern US and apparently Peru and Ecuador, and has a revenue of 1.5 billion as of 2019, whereas a Chik Fil A franchisee can only run one store they don't own (and can own no other businesses at all if I'm reading it right). That's not just a difference of return on investment, that's an entirely different economic world for people who can scrape together 10k vs people who have a million dollars to spend. Don't be bootlicker.

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jwb

Well I didn't know franchisees got that big tbh but I don't really see how any of this proves anything other than you can make more with one where you have to put down more money.... This started with you telling me maybe some venture capitalist was skipping her in line which is what I responded to. The fact that there are other kinds of franchises that both require more investment and return more money is honestly irrelevant.

jwb

Like yeah they might very well be in different brackets to such a point that while the one that offers more returns as you said offers a completely different economic reality, if it's that different then that is offset by more risk and a higher minimum threshold of investment.

I.e. what's the point of saying owning a McDonald's would be better if she's not capable of that rn but she is capable to get the chick fila one? Seems like a moot point to me.

music_collector

Good luck with your sister's business venture.

It's too bad she wasn't closer to the border. If she got a Tim Horton's franchise, it would be a license to print money, albeit lousy Canadian money.

The Batlord

Like I said this illustrates the difference in opportunity. In a world where FREE MARKET CAPITALISM hadn't been used both to economically and legislatively advantage a small minority of those with pre-existing wealth over the vast majority without pre-existing wealth this might not mean much, but since that is the world we live in it really expresses what the different classes can expect out of life. I mean I was asking what company your sister worked for because I was curious if there was a plethora of options for potential franchisees to invest in based on their current wealth, but no there just seems to be rich people opportunities and then Chik Fil A's feudalism option that is super hard to even qualify for. I mean there's a somewhat cheaper option for Subway that still requires 100k-250k but everything I've heard about being a Subway franchisee is ****ing dystopian and kind of a scam.

Basically you're either born wealthy enough to buy a McDonald's and become even wealthier or you settle for Chik Fil A if they'll deign to accept you and become middle class with little options for advancement.

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jwb

So your point is not that the chick fila franchise isn't a good deal, it's that most franchises are for richer people than that? Or are you still saying it's a bad deal because it's not as lucrative and doesn't give as much ownership? Because given the lower investment that makes sense. It seems like you think they should somehow retain tons of equity without putting much capital in.... Other than that I'm not sure what you expect.