any franchisees here?

[mopinko]

the hubby is thinking of leaving his job to consult. this is a scary thought for us, with 4 kids to support. (plus me, an artist who contributes NO $$.)
we have a good chunk of change in a 401k, and would take 1/3 to 1/2 to put into something that would give us at least some income.
aar has been running bits for quizno's franchises.
we need something that takes minimal babysitting. we have a daughter and son-in-law that could manage the day to day. they would do a good job, and can be trusted.
anybody been down this road??
(totally unrelated suggestions for good investments welcome.)

[Cyndee_Lou_Who]

1. I work for corp HQ of a franchised organization based in WI

PM me if you'd like details. We are a retail chain with about 240 stores nationwide. I am in the IT department. I report to about 110 CEO's. It's an interesting and rewarding change to 'standard' org charts.

[mopinko]

6. i will see you at the get together

and we can talk. will pm in a second.

[On the Road]

2. I Don't Know of Any Franchises That Require Minimal Babysitting

You can make money in fast food, but it's a brutal business that saps energy and consumes all your time. Having a Quizno's franchise, four kids, and a new consulting business in the family could be a great strain. But, if you have a relative who you can trust and who would really take care of 95% of the work, it might actually pay off. The question would be how involved you would end up being and how much return you would get after their salaries were paid.

If you want something that doesn't take as much time, you might want to consider being a landlord. If you use a property manager, it will cut down significantly on your time and hassle. It's very flexible -- you can do a little or a lot. If you buy cheap houses in the poor section of town, the cash flow can be better and you have more leeway. Like in most businesses, the long-term benefits are great, but you shouldn't count on a lot of money coming in the first year. Something else to explore -- it's not for everyone.

[FloridaPat]

7. I've had rental property and know others. It's not that easy. When

you are trying to rent it, you still pay the mortgage. If people come in and destroy everything, you're out the money. If you have to evict someone, it could turn into a nightmare.

I had someone in a duplex kill someone. No rent for 6 months. I have a friend in Atlanta that has 3 houses. She has trouble keeping them rented.

[On the Road]

16. That's Why It's Not for Everyone

You need a certain financial cushion, which didn't seem to be a problem, and enough time for the property to stabilize. It's absolutely necessary to understand the upside and downside.

One reason to use a property manager is to handle evictions and other hassles like maintenance. Around here, they charge 10% of the monthly rent, which is not a bad deal considering what you avoid. That's how investors can own 50 properties and not go crazy.

The hidden benefit is that you get excellent tax breaks, and even if you never make a dime, when you pay off the mortgage you own a house. It's a great way to build up for retirement.

My girlfriend has ten houses and grosses about $7,000 a month part-time. But she works herself to the bone to do it.

I have three small places. I have definitely had problems, and have just hired a property manager. But it works well enough that I'm thinking of buying a fourth.

[mopinko]

21. lots of realtors and landlords in the family

principle residence is a 2 flat. we occupy it all now, but had tenants for years. like you say, didn't make a dime, except on april 15, but have a tidy nest egg now.
tired of eating dust, etc. but some of it i like, and have kids that i am training also. so it would be tolerable.
my sister started at 50 buying those downtrodden but sturdy houses, and making them pretty. she is 60 now, has 9 houses, has turned over about 10. she didn't have mush for retirement, having mostly been a mom, but she is set now. she can hand it over to a manager when she gets tired, and still have a cushy retirement.
no can do in chicago, tho. would have to be a long distance thing.

[On the Road]

25. Some People Do it Long-Distance

but personally I wouldn't touch it. It's probably better to stick to what you know. Sounds like there's a lot of good business and financial experience in the family.

Although there are a lot of niches in real estate. My girlfriend rents some of her houses as single-room occupancy to students and young singles. You can get twice as much rent that way and always have at least some revenue coming in. For example, she bought a small rowhouse for $100K and rents four rooms for $500 each.

She seems to have found a niche among Indian programmers coming over on work visas. They tend to be good tenants -- they have money, are on-time with the rent, and have good living habits. Takes a little more time, but you also meet some interesting people that way.

Not trying to push it -- just sharing some experience.

[mopinko]

30. there may be something here

like a bigger building with a tavern or something. don't want to go too far out on a limb, but might be able to find one of those ugly but workable properties. there are still a few out there. it'll be fun to look.

anything long distance would be something that we could visit frequently. we are about ready for that now that the kids are getting bigger, anyway. i agree long distance is not the best idea.

[On the Road]

32. Mine are 45 Minutes Away

but I'm in the area frequently, since my girlfriend lives there. I want to keep mine all within a few miles of each other. Distance is a big obstacle.

What I found out is that a lot of neighborhoods are just psychologically out of bounds. Once I started looking for the cheapest neighborhoods within an hour's drive, I couldn't believe the results. Some of them might be seedy, but otherwise perfectly livable. And the streets are safer now then they were twenty years ago.

[FloridaPat]

35. My problems were while I did have a manager.

[mopinko]

9. real estate is on the list

trouble is that prices in chiago are NNNNUUUUTTTTTSSSS!!!!!
we were in galena over the weekend, tho, and fell in love. it's on today's to do list to see what i can find out about prices and availablity. there looked to be a lot of tiny old houses that are probably not great for a residence, but might make a nice vacation rental type thing. lots of tourists, even in feb. and we get a "free" vacation in the off times. plenty of agents available, and know some of the folks that live there.

not in the mood for any fixers, tho. been working on the ole primary residence since we bought it, 17 years ago. finally see the light at the end of the tunnel, but it is still a pretty good size tunnel.

might go for a reit or something, tho.

[On the Road]

17. I Didn't Check Your Profile, Mopinko

so I didn't see you were in Chicago. I agree that it's not a particularly good time to buy in a lot of cities. I live in Maryland close to Washington DC, which is sky-high and almost out of the question.

My three places are in a seedy working-class suburb of Balimore, where you can still get a rowhouse for $50,000 or less and charge $8-900 for rent. (The ugly ones and the ones you would never consider living in are often the best investments.) To get those conditions, you might have to drive aways to some run-down industrial neighborhoods, which still might be inflated.

Just a suggestion. Pay attention to those posts which warn about the dangers.

[seabeyond]

3. its hard it is scary and there are no quantees and

you work your ass off and lots of hours. little free and family time. my husband stepped into it about 3 years ago. two little ones. a couple times i thought we were going to have to shut the doors. i swore i would not get into debt where i had dug hole, but would get out when i was still ok. but...........three years later, it has settled. it is less scary. and the company has evolved. in business class you will hear 2-3 years. but being the optimists we were hoping we wouldnt have that period. we did, like the majority.

quizno is a good company. it is a good product. my father is more in the understanding of franchises and the percentages a company will want from you and whether it is a good deal. and how long their cut is. this is the stuff you have to look into with franchises. get that info

employees even in family members, as much as you love them, and feel they will be good there are always surprises. being manager of employees and father owning businesses a lot of years, amazing how many family members and other employees think they are owed. can be a challenge with family. can cause rifts. always gunho at first then the honey moon is over

good luck, wink

[mopinko]

11. family members

actually, i think they will be good. but seriously, i will insist on some family therapy for the 2 of them, and for the 4 of us, before anything happens.
they are both long time restaurant workers, good at their jobs and very hard working. he is now managing a place that is making him crazy, due to bad, lazy, cheap owners.
she is working for me, helping with some home improvement projects, till the weather gets nice. her job is waiting for her at a seasonal place. we had a rocky relationship most of her life, but get a long well now.
i would definitely try to do a percentage deal with them. don't know how that would fit into a franchise deal, but i would want them to be rewarded as well as possible for their work. and both would respond to the incentive.

[seabeyond]

13. cool thanks for the info

my father and i, off and on, have worked together many years in different companies. i loved him as boss. he trusted and respected me and allowed me to do. we are great working together. i dont take things personally and i understand business, so not into extreme demands

where as my two brothers are more challenging for him. they challenge him, and they dont have nearly the experience.

my father brought in his brother in law almost two decades ago. they didnt have the cash, but he gave them the business to run, day to day operation. now, they are equal partners and have been for quite a while, as far as business ownership, though father is the authoritive one.

they are not getting along. not since mom died.

but with what you described in your family, sounds like you have the making for something good.

[mopinko]

22. good teenagers, also

my real true motive is that i have 3 teens, and a pre-teen, and could abuse them a little in the process. their big sister handles them very well, and they all have useful gifts. none of them are in danger of 100% scholaraships to harvard. they need jobs.

[seabeyond]

26. my parents bought donut shops in calif

as i was starting high school. there were three of us kids, teenagers. it was great. we worked all thru school, my mom saved our money for us and allowed us only so much. adn it taught us how to work, be responsible and the responsibility of owning and running a business. why all three of us tend to go towards owning own business.

you betcha.

and it will be a fun place for your kids to work, especially summer. friends come in and spend money, no give aways even to the cute girl, lol lol. and then high school friends and stuff for counter help, could become the kid hangout. my parents hired the senior cheerleaders. so everyone hung out there. i loved working friday and saturday nite. i was a freshman so walking into high school, i knew all the popular seniors, and they took care of me

cool memory, lol

[mopinko]

31. hired the senior cheerleaders

making a note, here.

[seabeyond]

33. they did it by accident

but was a smart move, lol. all the football players came in hungry. the tricky is them not giving it away

[On the Road]

18. If Your Family Members are Experienced Restaurant Mangers

that is extremely valuable. If they go into it knowing that you want to be saved the hassle, that might make it worthwhile. All you would need is the absolutely right location.

Whether it makes money and how long it takes to turn a profit are still question marks. But it sounds like you have one of the most valuable assets, good trustworthy management.

[greatauntoftriplets]

4. PM Andy Stephenson.

He owned a Subway franchise. It was a nightmare ro operate and selling the thing took years. Also not a moneymaker.

[mopinko]

5. hmm

i really like subway. too bad. i will drop him a note.

[greatauntoftriplets]

8. He's on the road, so a response might take a bit of time.

He can give you good advice. To this day, he avoids Subway...but he got rid of it only one year ago.

[amazona]

20. subway doesn't protect its franchisees

You can buy a franchise, and they'll turn around and sell another right down the street a block away.

So you have an investment and suddenly you can't make any money.

The conservation movement is a breeding ground of communists
and other subversives. We intend to clean them out,
even if it means rounding up every birdwatcher in the country.
--John Mitchell, US Attorney General 1969-72

[mopinko]

24. i can see that

they are doing that around here. there are 4 within 6 blocks of me!

[seabeyond]

14. location, location, location n/t

[greatauntoftriplets]

19. It was in a GREAT location.

n/t

[ohiosmith]

10. You should read this:

http://www.ripoffreport.com/reports/ripoff122344.htm

I personally lost more than $100,000.00 on an Inches Aweigh franchise. I learned too late that corporate had misrepresented the potential and overstated success rates and earnings. I was one of the lucky ones. Other operators lost millions.

[mopinko]

12. i do know

that rosy scenarios are common, and should all be discounted by at least half. and then pounded on by lawyers, and independent marketing people. i would go into it with absolutely no trust.

[radwriter0555]

15. Curves is the number 1 small start up fee franchise in the nation

and is expanding to europe as well.

That's where I'm putting my money, actually.

[mopinko]

23. aren't they fundies?

this is not something that i really could see myself buying/using personally. a yoga school, maybe. but i am in pretty bad shape. i would not be a good advertisement.

[medeak]

28. my friend is very overwieght with Curves franchises

she doesn't work out..and yes unfortunately founder is big antiabortion nutso.

[mopinko]

29. yeah, deal breaker, tho.

no can put anything into those hands.

[medeak]

34. can understand that

however fyi..friend had declared bankruptcy and they financed her even so....so no gain to them other than monthly fee which is relatively small for franchise.

She puts up her own liberal messages on walls. Sort of makes up for it.

btw... her first one grossed $350,000 in one year. I don't even ask about the others...husband quit job.

[medeak]

27. friend has three Curves franchises

rarely checks in... run themselves.