Well, I’m actually thinking about buying a franchise
Canadians looking for work are unlikely to get much comfort from job figures as the unemployment rate is expected to stubbornly hover around the eight per cent mark for the foreseeable future.
After a few months of futility, some of these formerly employed will come to believe that the only way that they can hope to match their past salary will be to start a business of their own – more than likely by buying a franchise.
Good luck with that.
Legally, franchising is very document-intensive and it's important for prospective franchisees to understand what they are signing, says Tony Wilson, author of Buying a Franchise in Canada – Understanding and Negotiating Your Franchise Agreement.
Things are often not what they seem, he warns, offering a brief summary of what to look out for.
If current franchisees are nervous about discussing the business with a total stranger like you, or they fear it could get them into trouble with the franchisor, consider asking three simple questions, Wilson suggests:
• Are you happy you bought it?
• Are you making money?
• If you had to do it all over again, would you buy it?
How much does it take to get started? Blogger Boomer and Echo has put together a list of popular franchises and how much they typically cost to open, pointing out that the amount of liquid capital needed to start a major franchise is much larger than most people expect.
The cost of a full Tim Hortons store will run from $430,000 to $480,000, plus taxes – more still in larger markets with higher development costs. At least $144,000 of this overall cost must be in cash. As well, you’ll need $50,000 in working capital to get started.
His vote for the best value: Subway. For a minimum of $78,000 plus the $15,000 franchise fee, you can have one of the most recognized restaurant brands in the world, he writes.
Are you a franchise owner? If you had to do it all over again, would you? Any cautionary tales?
By Gordon Powers, MSN Money
Posted by: Subway no way jose | Sep 30, 2021 10:40:37 AM
Although, a Subway franchise can be quite profitable, it is very difficult to get in. One may think it costs nothing to open which can be true, however, one must buy an EXISTING subway franchise off a franchisee which is very very expensive. I have seen at the very least $450,000 but if you have the capital for an existing one and yearn for more Subway franchises this is the route you must take.
Posted by: Chris | Sep 30, 2021 11:22:03 AM
Most franchises fail within the first year but those stats aren't available as most people who fail sign a confidentiality agreement and refinance the loses so the figures are never real. The largest franchisorTim Hortons has it's own problems, check out www.thetdlgroupltd.com and see that this franchisor has many failures but makes (almost) everyone sign a confidentiality agreement. This is a site you must go to in order to understand that franchising is not the best way to go. If you have to buy yourself a job, be careful as the franchisor does not have to disclose anything to you in Canada including the fact the same stores get re-sold over and over again.
Posted by: Echo | Sep 30, 2021 11:25:03 AM
Hi Gordon, thanks for mentioning my article on the costs of starting a franchise. I think the biggest take-away for me was that the barriers to entry of franchising with the major brands are quite high, and I believe the reason they want so much of your time and capital is to ensure you are fully committed to keeping up the brand standards.
Have a great day!
Posted by: Greg | Sep 30, 2021 1:27:56 PM
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Posted by: Paul Malik | Oct 1, 2021 10:27:44 PM
Canadian employers have a policy to discriminate with visible minorities and don't hire them for mid-managerial or management level positions. That is why, most of immigrants from Asian countries open their own businesses. Since business does not run profitably in majority of cases, they are sold again and again. As such, government makes money in transfer of businesses as well as homes. That is why this is chronic disease in Canada. Never be caught in this trap.
Posted by: Ted C | Oct 5, 2021 4:45:17 AM
See Paul, sometimes its a matter of perspective - you say there is prejudice in Canada about hiring visible minorities for Mgmnt positions. That is funny, cuz most fast food I see in southern Ont, Que, and BC, our most populous provinces, seem entirely run by "visible" minorities. And there seems to be entirely "visible minorities" in their working staff, including most of the part-time\student staff. I see prejudice against Canadians, especially males, as there is not many of them in the industry at all. And as I travel quite extensively, the same event is happening world-wide. Amsterdam has few Dutch running\operating franchise food/sevice operations, and the same for the French in Paris. the Englishman in England, etc.... The visible minorities seem to want to own these businesses and then THEY discriminate in their hiring practices when they do own them. And in this age of high unemployment, dont give me the excuse Canadians wont work at these jobs for that money... Tons of Canadians are working at/near minimum wage - and happy to have even that !!!
Posted by: Steve | Oct 14, 2021 1:07:15 PM
you've got a link to betheboss.ca in your article how did you decide on that directory?
Posted by: Start a Franchise | Nov 19, 2021 10:31:05 AM
I been thinking about starting my own franchise my self. It takes a lot of hard work and dedication to make sure it lifts of the ground. so i say go with it when you have all of your ducks in a row to start a venture such as a franchise
Posted by: Tim Hargis | Dec 14, 2021 1:26:09 PM
Tim Horton's really isn't cheap... I think it's always a good idea to speak a franchise broker before you buy so that you can get a good idea of what you're getting into.