Franchisor
topic on 1 show · 4 statements across 2 episodes
4 statements about Franchisor, every show
Myers: Franchisors make little profit from upfront franchise fees
“The way a franchisor makes money is certainly not off the franchise fees. The franchise fees are very low. That's really just to help us support all of the training and everything that we run a franchisee through.”
Rutledge: Opening food franchise in existing space costs $500K to $750K
“So if you're gonna get into a Food business in general, you're probably at half a million dollars to actually get the business open with the percentage of that going to half a million to 750,000 dollars with in a non standalone location, meaning you're buildin…”
Rutledge: Franchisor fees often slash expected 30% bottom-line margins down to 10%
“Your bottom line isn't nearly what you thought it would be. You were expecting 30% and it's 10, for example, because of all the various ways you have to pay the franchisor.”
Rutledge: Hospitality franchisees are often trapped in expensive closed-circuit sourcing contracts
“They may find a like product for a lot less money, but the franchisor has a deal where they're getting, you know, margin on what you buy, and therefore you're in contract to get things, even if it's not in your best interest, or you have to buy the, again, spe…”