a friend of mine is opening up a food franchise and he is insisting that he will make $10,000+ weekly upon opening his business next month... I told him that he will eventually make that money but not at the beginning... he thinks he is going to roll in the dough within weeks of opening his first business. what do u think?
2007-11-08 09:15:59 · 19 answers · asked by Anonymous in Business & Finance ➔ Small Business
Every business person knows that everything is based on this one concept :Supply & Demand....with this understanding how can a newly opened business unknown to the neighborhood have such great demand?
The business needs to acclimate to it's location.
2007-11-08 09:19:53 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Depends on the franchise, and it is possible. Especially if there isnt another strore around like it for miles, very possilbe. Friend opened up a Subway, and makes 8500. a week profit. There's not another fast food for 10 miles
Most franchises you have to pay for the name:
McDonalds around 1 to 3 millions
Burger king 800,000 to 1,000,000.
2007-11-08 09:22:41 · answer #2 · answered by mevanr8x7 3 · 0⤊ 0⤋
Depends on the franchise and what other businesses are around him.
If it's a popular franchise, AND he works hard to keep up quality of product it's possible to make a profit like that.... But if he doesn't keep the quality of the food and enterior, he will fall flat...
Good luck to him...
2007-11-08 09:22:20 · answer #3 · answered by ♥♥The Queen Has Spoken♥♥ 7 · 0⤊ 0⤋
Possible? Yes
Likely? no
Most franchise owners make 40k a year or less
It take a while for a business to make a profit, on average a few years.
If your friend is looking for instant cash, he may be very disappointed.
2007-11-08 09:19:46 · answer #4 · answered by Uni 3 · 1⤊ 0⤋
Actually it's 85% of businesses that fail within the first 5 years.
Restaurants are a great money maker but franchise fees "eat up" a lot of the profit. (Pardon the pun.) And while his revenue may be 10K/wk, his profit certainly won't.
Good luck to him, though!
2007-11-08 09:21:19 · answer #5 · answered by Marion K 3 · 1⤊ 0⤋
No way. If he's VERY lucky, he may take that over the counter. But after tax, rent, staff, bills & provisions etc. I bet it's no more than 1 or 2 thousand a week & a lot of hard work & worry.
2007-11-08 09:21:35 · answer #6 · answered by andy in greece 6 · 1⤊ 0⤋
There is an old saying...A fool and his money are soon parted. He may gross that amount but after the bills are all paid he will be lucky if he clears a profit his first year!
2007-11-08 09:20:32 · answer #7 · answered by Anonymous · 1⤊ 0⤋
Normally you wouldnt get that much at first. After maybe the 1st or 2nd month, & his business was very succesful, he may have a chance making that profit=]
good luck=]
2007-11-08 09:19:14 · answer #8 · answered by Anonymous · 0⤊ 0⤋
after all those investments: the cost of the franchise, intial set-up, advertising, etc. etc, etc, it will probably be about 6 months to 1 year before he SEES his return break even or gain a profit.
2007-11-08 09:19:16 · answer #9 · answered by Anonymous · 1⤊ 0⤋
it takes up to a year to reach full potential. on the 10k, figure it out...about 1,400 a day. if each sandwich sells for about $3, that's 470 sandwiches a day.
2007-11-08 09:20:46 · answer #10 · answered by Anonymous · 0⤊ 0⤋