Buying into a franchise $$$$ thread
 

I have been more and more interested in buying a pizza joint , like Little Caesars or Hungry Howies... anyone know what kind of profit turnaround to expect from this? Can you tell me any pitfalls to expect??

Any experience?

Little Ceasars is owned by K-mart, who seems to know squat about making a buck these days.... and quite frankly ruined the franchise once they bought it. Stay away from that one... (How can you have a pizza joint with no delivery service anyhow?)


Never Heard of Howies,

Pizza Hut is too well known for its heart clogging cardboard and taste.. Totally killed themselves with their poor ingredients and overmarketing how good it is. I would not eat this stuff if i was stuck in a desert, the sand tastes better...

Papa Johns, never had it myself, but they have a great reputation and marketing team... I'd go with them, have fun in franchise school!

oh forgot to mention the real backbone of franchises, its all about location... spent 99% of your research on the location!!!

Out of all the franchises I would own, a pizza join is not one of them.

A friend of mine runs several different frachise restaurants and tells me that his average "Profit" on each one is only about $40k/yr. He makes his money on volume.

Each one turning 40k/year profit isn't too bad I don't think. If the franchise fees aren't too bad and you have good managers at each place running a good place you could do well. If you know what you're doing, you can do volume just like your friend and that 40k/year really adds up.

Incorrect.

http://www.ilitchholdings.com/
http://www.ilitchholdings.com/Companies/companies.html

KMart might own a franchise, but they don't own Little Ceasers. Back on topic, I've heard that the restraunt business can be a risky venture from a number of investors, and people whom have tried. A pizza joint in a good location would probably do well. Especially in a nice suburb, or new development area. If you have a nice targetted delivery area, or minimal competition, you should probably do well til the others move in.

:pimp

I looked at some franchises last year. I liked the idea of buying an existing local with a proven track record. The prices are all over the board for stuff like that. The reason i did not pull the trigger is most of them, you buy a job. Running a restaurant for 40k/year is not a lot of fun. And if that is on a good size gross, one inflated expense wipes that 40k out.

I looked into a White Castle franchise a few years ago. One problem, they are privately held and have no interest in franchising. Krystal burger can't touch White Castle. The frozen ones are crap.

I'm not worried about location as there are a plethora in the valley (potential hotspots)
The Little Caesars buy my house always has people out the door, especially on the weekend.

Thanks for the feedback, I appreciate it.

Little Caesars will always do well because the product is so cheap, partly due to the fact that they have a low overhead.

In addition, the amount of drunkards that stumble in will alone keep em in business.

Not everyone is sitting around, working or partying at the abode waiting for the pizza dude.

I heard there is good money in porn.

My dad is friends with a man who owns several Subway's and he is making a killing. Also, it is one the cheaper franchise licenses to aquire. May want to look into those.

just dont buy into a fucking coffee house.

the last thing this world needs is more hangouts for hippies and pacifists