arbys franchise?

Question

I am interested at buying at Arbys franchise. Two actually the purchase price is 465k. The owner claims net earing of 180k. Is this a good investment. Good thing to own and operate or will I be working 24/7 with no end in sight. Good franchise or lousy

Answer 1

I would do research on Arby's...remember whats good for one place might not be great for another place. I haven't seen any arby's near NY so im not sure how good their doing here. Go to their website and see how the overall company is doing, income statements & balance sheet. Also, the owner claims to have a net earning in 180K, well ask to view income statement and balance sheet. They could make 180K but after expenses could be negative. Just do your research.

Answer 2

A few things that may help:

First, here's some survey data garnered specifically from current Arby's franchisees. Data is from 15 franchisees in 12 states.

About how many hours per week do you dedicate to your franchise business?

% answering
A) Less than 40= 27%
B) 41 – 50= 13%
C) 51 – 60= 13%
D) More than 60 = 47%
E) Passive investment = 0%

Is your income more, less or about what you expected prior to opening your business?
% answering
More 36%
Less 29%
About what was expected 36%
Summary: 72% are making about what they expected, or more.


If you could turn back time to the day you signed your franchise agreement, would you make the same decision to buy your franchise?
% answering
Yes 87%
No 13%

Whether it’s worth investing in a franchise can only be answered after the fact. The best way to truly assess whether to buy any franchise is to speak directly with several (at least six, preferably more) franchisees for the company you are considering.
A self-examination as to whether owning a business is what you really want is also essential, as is a very thorough due diligence. Here are 10 steps that should be taken by anyone considering investing in a franchise:

1 - Conduct due diligence on yourself
2 - Find a great accountant
3 - Find a great attorney specialized in franchise law
4 - Conduct due diligence on the business
5 - Refresh and enhance your business acumen
6 - Write a business plan
7 - Identify and hire a great team- then create a culture to retain it
8 - Hone your leadership skills
9 - Hone your sales skills
10 -Create a schedule that allows some time for family and friends

Some other information you may find helpful:

Most franchise contracts are 10-year commitments for which the franchisee has virtually no rights. They're structured such that the franchisee has very little latitude or say in how the business is operated. You have flexibility to hire your staff, manage them and set your own prices, but most everything else, from displays to products you may/may not carry to signage/advertising, equipment, technology, etc. is usually either governed by or subject to the approval of the franchisor. It's not like owning your own business, it's more like being a store manager who, if the business is profitable, takes home most of that. And if the business is not profitable and you want to sell it or close it after five years, these are both very difficult to do. The former is usually via either a very large fee (an example is a local franchisee who paid $100,000 to terminate his franchise contract with one of the more popular women's fitness center franchises) or personal bankruptcy (franchise contracts generally require you that you be personally liable your business debts, not just through whatever type of corporate entity you might establish; e.g., LLC, S Corp., Partnership, etc.). The latter option of selling your franchise is generally accomplished only at a very large discount.

There are dozens of things to investigate when considering investing in a franchise, but here are some fundamental questions to ask current franchisees:

About how many hours per week do you dedicate to your franchise business?

How would you describe your relations/communications with your franchisor?

Is the franchisor fair with you in resolving any grievances?

Are territories equitably granted?

How would you describe the initial and ongoing training provided by your franchisor?

In what ways could the parent company most improve?

Is your income A) more, B) less or C) about what you expected prior to opening your business?

If you could turn back time to the day you signed your franchise agreement, would you make the same decision to buy your franchise?

The last one is of course the most important. There are many very happy, wealthy franchisees out there, but it's not a guaranteed formula for success. Every opportunity is unique and requires extensive due diligence of both the franchise itself as well as the regulations governing the industry. If you have more specific questions, please feel free to contact me.

Good luck.

Answer 3

If I were you, I'd demand financial proof that they are netting 180K per year. If it's true, you will make your money back plus profit within 5 years. That would be a good investment. But demand proof! That's a LOT of money that you would be putting up front if you don't have proof that it is netting 180K profit.

Arby's food is not gross either lol> Some people like it, some people don't. It tastes good to me

Answer 4

$180k earnings per year, for sale at $465k?

Seems like he's selling cheap. Why?

If his numbers bear out, buy it, hire 2 managers at $30k/year,
and you'll be making 25% on your money with no time invested.

Answer 5

1

Answer 6

It's questionable and there are in fact several answers to this question...

Answer 7

arbys sucks dood.

Answer 8

arby's is gross.....