Setting up a Franchise

Goose Hyypia

Hi there,

Im interested in setting up a subway, quizno's franchise. I have done a lot of research so I am aware of the basics. I am just looking for a bit of advice if anyone has some experience.

I am in the process of writing up a business plan and have sent off application forms to the above franchises.

I would appreciate any kind of advice.

Cheers!
- Goose.

MagicMarker

Quiznos, do they allow franchises internationally? I only ask because if they did I'm surprised why there isn't any over here already.

Unfortunately, I can't offer advice. Best of luck though!

Zascar

this site might be some use to you: www.irishfranchiseblog.com

Rockshamrover

MagicMarker wrote: »

Quiznos, do they allow franchises internationally? I only ask because if they did I'm surprised why there isn't any over here already.

Unfortunately, I can't offer advice. Best of luck though!

There are two in Dublin that I know of. One in the Stephen's green shopping mall and one in Mary street. They do great subs.

Bandara

there have been loads of posts on here about subways etc they come up every week or two

do a search

MagicMarker

Rockshamrover wrote: »

There are two in Dublin that I know of. One in the Stephen's green shopping mall and one in Mary street. They do great subs.

Cool, never knew that.

I had one in the U.S but wasn't that impressed tbh. It was the one time in my life where the food just didn't taste as good as it looked, and it looked DAMN good!!:)

Goose Hyypia

Hammertime wrote: »

there have been loads of posts on here about subways etc they come up every week or two

do a search

Will do thanks!

Bandara

MagicMarker wrote: »

Cool, never knew that.

I had one in the U.S but wasn't that impressed tbh. It was the one time in my life where the food just didn't taste as good as it looked, and it looked DAMN good!!:)

they are not too interested in expanding at the minute afaik

Bellies

There is so much work to go into a franchise I personally think that it's not worth it! Considering you are paying a first off payment of... €15,000 (depending on the franchise) and x% as a royalty I'm not sure is your hard work rewarded as your basically making the master franchise more wealthy!!?

Have a look at www.irishfranchiseblog.com make contact with a number of franchise operators and see what they have to offer? I know when I check last April, a Kiosk was starting between €15-€20,000, obviously depending on the size.

Why not set up your own sandwich bar, which serves a healthy, nutritious sandwich/ wrap with a soup/ tea of coffee for fee of €5.00? As word of mouth spreads and you gain a reputation you can charge a higher price. I know that this sounds very obvious, but do something different that other competitors aren't offering their customers!! Good luck.

Bandara

Bellies wrote: »

There is so much work to go into a franchise I personally think that it's not worth it! Considering you are paying a first off payment of... €15,000 and x% as a royalty I'm not sure is your hard work rewarded as your basically making the master franchise more wealthy!!?

Why not set up your own sandwich bar, which serves a healthy, nutritious sandwich/ wrap with a soup/ tea of coffee for fee of €5.00 as word of mouth spreads and you gain a reputation you can charge a higher price.

because the chance of you'll managing survive long enough to have word spread is miniscule.

Franchises work, and there is so relatively little money made by coffee shops anyway that the amount you'll make as an indy or as a franchise is not very different. And the franchise gives you a MASSIVE advantage

Goose Hyypia

Bellies wrote: »

There is so much work to go into a franchise I personally think that it's not worth it! Considering you are paying a first off payment of... €15,000 (depending on the franchise) and x% as a royalty I'm not sure is your hard work rewarded as your basically making the master franchise more wealthy!!?

Have a look at www.irishfranchiseblog.com make contact with a number of franchise operators and see what they have to offer? I know when I check last April, a Kiosk was starting between €15-€20,000, obviously depending on the size.

Why not set up your own sandwich bar, which serves a healthy, nutritious sandwich/ wrap with a soup/ tea of coffee for fee of €5.00? As word of mouth spreads and you gain a reputation you can charge a higher price. I know that this sounds very obvious, but do something different that other competitors aren't offering their customers!! Good luck.

I take your point but what about the national/ international marketing?

Each franchise also lends you hand in setting up your business etc..

Bandara

Goose Hyypia wrote: »

I take your point but what about the national/ international marketing?

Each franchise also lends you hand in setting up your business etc..

don't believe all they tell you, they don't really give a toss about you tbh, but they have the template for you to work off which gives you the huge headstart on some indy startup.

Bellies

Goose, to be honest. If your serious about this venture you should concentrate on a certain area. National and International markets are a fair bit in the distance at this early stage.

Marketing is very easy. Ask yourself one question.

What is the best and cheapest method to get ppls attention and attract sales?

Do I bombard housing estates with flares??

Take an advert out on a local paper and hammer out a good deal.

You have to take advantage of the recession also, they're looking for business just as much as you.

Your pricing and quality of your food will have a knock on effect!

Bandara

Bellies wrote: »

Goose, to be honest. If your serious about this venture you should concentrate on a certain area. National and International markets are a fair bit in the distance at this early stage.

Marketing is very easy. Ask yourself one question.

What is the best and cheapest method to get ppls attention and attract sales?

Do I bombard housing estates with flares??

Take an advert out on a local paper and hammer out a good deal.

You have to take advantage of the recession also, they're looking for business just as much as you.

Your pricing and quality of your food will have a knock on effect!

I would suggest that Goose is referring to the fact that franshises such as subway advertise hugely on national and international media so brand recognition is superb and means people will buy off you from the first day you open as they know the product alreadly.

unlike a independent startup where no one will give you a chance

Bellies

Very True.

Isn't that the beauty of business thou?

But would you honestly invest in a franchise, where you must invest €20k for the name alone, aswell as pay for the fixtures and fittings, along with rent!



Ohhhh not to mention the X% of royalty each month!?

Goose Hyypia

Hammertime wrote: »

don't believe all they tell you, they don't really give a toss about you tbh, but they have the template for you to work off which gives you the huge headstart on some indy startup.

Really ?

Hammer you really seem to know your stuff when it comes to this.. have you any pointers?
I believe this location to be perfect for this kind of business.

Bandara

Bellies wrote: »

Very True.

Isn't that the beauty of business thou?

But would you honestly invest in a franchise, where you must invest €20k for the name alone, aswell as pay for the fixtures and fittings, along with rent!



Ohhhh not to mention the X% of royalty each month!?

Yes, I would, I do, and I've made a lot of money from it.

Bandara

http://www.boards.ie/vbulletin/showthread.php?t=2055397760&highlight=subway

http://www.boards.ie/vbulletin/showthread.php?t=2055511813&highlight=subway

http://www.boards.ie/vbulletin/showthread.php?t=2055506937&highlight=subway

some decent stuff there

Bellies

I'm delighted for you. Well done, one of the many who surfed that huge economic wave!

So what's your strategy that's going to guide you through this economic storm?

Unemployment is on the increase and disposable income is shrinking! Can you drop your prices if your involved in a franchise??

Bandara

Bellies wrote: »

I'm delighted for you. Well done, one of the many who surfed that huge economic wave!

So what's your strategy that's going to guide you through this economic storm?

Unemployment is on the increase and disposable income is shrinking! Can you drop your prices if your involved in a franchise??

To be honest there is no economic storm for me thus far (touch wood)

on average sales are down between 4% to 6% which is marginal considering the profit levels we're running at, week on week the last month has been excellent, I've been able to shift the dead wood I've been dying to get rid off and the businesses are running better than they ever have.

Margins have dropped minimally (about 1.25%) which in reality is not an issue as I will still be retaining an excellent percentage and am still trading extremely strongly.

Good business in my sector that are in good locations are still doing very well.

I can drop any price I want, a franchisee owns the company and owns the business, the parent company are simply the landlord, I do what I like how I like it. Once they get paid their cut and the site is run to a high standard they know to stay out of the way. Which they do. They are busy enough chasing people who are not paying their bills and acting the mick, I don't buy fancy cars out of cash flow, I don't work 15 hours a week and play golf the rest, all these lifestyle/part time retailers/owners are being found out now.

I'm opening another retail site in about 3 months time and I strongly feel its going to be a superb business.

To be honest I'm enjoying things at the moment more than ever, I love having to fight for everything, its exhilarating.

Bellies

I'm assuming that your involved in the food business of some sort.

However, I was under the impression that you had to stick to a recommended selling price as the other franchise operator? Because the obvious question would spring to mind....

For example: Why would I purchase a Sub of the day from you for €8 while I could purchase the same product from the same franchise 2 streets down for €6??

It's here that would make me believe that a pricing strategy would have to be agreed! As far as I'm aware of McD's ensure that the price of a Big Mac is the same price in Dublin as it is in Paris? Am I correct???

Goose Hyypia

Thanks for your help Hammer.

I notice you have had your difficulties with Subway which is worrying.

How long does the process of setting up the Subway take ? roughly

tuxedo

Hi Goose,

Can i ask the question where you intend to set up this potential sub shop??

In Limerick City a Quiznos opened up on a very busy street, a street well known for good food and a great catchment area. I was told the person who took the franchise was a great businessman in the food game.

This venture lasted 7 months and now has been closed about two months.

As i am sure Hammertime will tell you, a fanchise cannot ensure success, its down to the person running the business and his/her will to make it successful!!

Tux

Goose Hyypia

tuxedo wrote: »

Hi Goose,

Can i ask the question where you intend to set up this potential sub shop??

In Limerick City a Quiznos opened up on a very busy street, a street well known for good food and a great catchment area. I was told the person who took the franchise was a great businessman in the food game.

This venture lasted 7 months and now has been closed about two months.

As i am sure Hammertime will tell you, a fanchise cannot ensure success, its down to the person running the business and his/her will to make it successful!!

Tux

Thanks Tux,

Im pretty sure this is a good area im considering with a big lunch time market.
I thought location would be the key to success. Obviously not the only key to success.

What other factors contribute to a successful franchise in your opinion?

deepriver

tuxedo wrote: »

Hi Goose,

Can i ask the question where you intend to set up this potential sub shop??

In Limerick City a Quiznos opened up on a very busy street, a street well known for good food and a great catchment area. I was told the person who took the franchise was a great businessman in the food game.

This venture lasted 7 months and now has been closed about two months.

As i am sure Hammertime will tell you, a fanchise cannot ensure success, its down to the person running the business and his/her will to make it successful!!

Tux

I have heard anecdotal suggestions that franchises will open up new operations in the exact locations that pervious ventures have failed, with new franchisee's... I guess it shows their about business and not protecting individuals interests

VO

Like everything there are Pro's and Con's involved in franchising as a business venture. If you have wide ranging business experience in the business sector you are looking at franchising may not be for you. If you don't it can be a cheap way of accessing the exoertise.

A couple of the pro's

Banks tend to favour proven franchise operations like subway etc when it comes to start up capital and working capitla loans.

Brand Development is normally part of the deal with a franchise, building a brand form scratch is extremely expensive.

The expertise and support from the master franchise can be invaluable as can the support of the network of franchisees- difficult and expensive to replicate when you are a one man band.

A couple of the Cons

The initial outlay - What are you getting for this examine thououghly

The ongoing royalties - can be worth it if support is good form Franchisor.

Marketing Royalty - What do YOU get for this.

Be aware that if there are weak franchisees they can impact negatively on your business -something which you have no control over.

My advice is think about it carefully and make sure you speak to existing frnachisees for their views. Then speak to a good Solicitor with experience of Franchising.

Good luck in whatever you do.

maninasia

Hammertime wrote: »

To be honest there is no economic storm for me thus far (touch wood)

on average sales are down between 4% to 6% which is marginal considering the profit levels we're running at, week on week the last month has been excellent, I've been able to shift the dead wood I've been dying to get rid off and the businesses are running better than they ever have.

Margins have dropped minimally (about 1.25%) which in reality is not an issue as I will still be retaining an excellent percentage and am still trading extremely strongly.

Good business in my sector that are in good locations are still doing very well.

I can drop any price I want, a franchisee owns the company and owns the business, the parent company are simply the landlord, I do what I like how I like it. Once they get paid their cut and the site is run to a high standard they know to stay out of the way. Which they do. They are busy enough chasing people who are not paying their bills and acting the mick, I don't buy fancy cars out of cash flow, I don't work 15 hours a week and play golf the rest, all these lifestyle/part time retailers/owners are being found out now.

I'm opening another retail site in about 3 months time and I strongly feel its going to be a superb business.

To be honest I'm enjoying things at the moment more than ever, I love having to fight for everything, its exhilarating.

Obviously some of the things you wrote are not applicable for most franchises. I have almost NEVER seen any franchise allowed to charge what they want when they want, this will cause a big price disparity and problems for marketing strategy for the franchiser. I have seen it in the US though were there is a big disparity between incomes in different neighbourhoods. Depending on the retail sector a recession can be good for business as people want 'value for money', leading to bigger sales of fast food and cheap eats.

You'd want to have a little inkling of what you are doing before fronting so much money into a business at the start. Location is key with a lot of these things.