Want to open new Optical shop, thinking of going with a Franchise

[Johns]

I have gone the french fry route, and have to say, for what we put into it, it was very lucrative. We rented all the equipment for an Octoberfest event. It rained the ENTIRE time, the turnout was sparse, and my friend and I still netted $1800+ for 2 days!! We then bought airline tickets, flew to Miami, met some co-eds and spent another weekend drinking.

Ah, those were the PMS (Pre-marriage/servitude) days!

[Java99]

Was talking to the neighboring business today, which is a franchise. She gives away 30% off the top for the privilege of being a franchise. I also know she has to have approval on all ads, promotional material, signage, and buys most of the same from the mother company, probably not at cost. She also has to use their business systems, honors ads and specials, etc.

To me, that's more like managing a business for a percentage of the profit than really running your own business. But hey, it works for her, and I might be bankrupt in a year.

[Speed]

Sure. It's been done. There is a potential fortune to ba made off franchises. They finance the 100 Gs to open(made money there on finance charges). Provided advertising (buy one get one free. The stores did not get the second one free so they doubled the sales and made money there). You must buy everything from them, regardless if you can get the same thing cheaper. Then you had to give him a cut% based on your stores intake based on gross(plus a "gross up", gross X 1.10. Took me a while to understand that one. I finally figured out that that clause was to increase corporate profits. Oh yea. (Made profits from this.) Heck yea! Franchising has much potential for profits. You just got to be willing to put in the hours edging all that product, half of which you are giving away.

[cocoisland58]

I have managed for two sucessful franchisees. You generally have to pay around 30% of your net (bank deposits) for the month. Some franchise agreements are more lenient than others in that you can open your own accounts with vendors, carry stock the corporate stores don't and make your own rules regarding office procedures. What you are paying for is the use of a known name and advertising, otherwise you are often on your own.

[Dana7Wheel]

Thank you all for your advice even the Pizza and FF bloggers. I am considering different routes, and will take my time deciding. Even though I am in the insurance business I have proven to be successful, but would like to expand my career and service the community. If I were to say I wasn’t in it for the money I would be lying but only partially. As I live in a rural area and I am focused on the needs of the community. If you are signed in to this site the rules are that you should be in the optical community, in saying that I have probably spoken or assisted you with an issue at one time or another throughout my career. What’s my point you ask? Well my point is that I have developed many relationships and a very good understanding of the Optical field. All though I have never owned an office I do speak with labs, OD's, MD's, and office staff daily...and have been for years, its all I know. I have always wanted to be proud of my performance, and have been in insurance, but my personality type and goal in life was not to stay in insurance forever. So the bottom line is keep the info coming I have a lot to learn, and I am very passionate about proceeding with my goal. I am confident that with your help, the help of my current business relationships, and the business plan this will work for the community and me ( : Just holding on to faith that the funds will work themselves out....holding holding holding. No...I know it will it always does somehow some way.
Thanks again!

[Dana7Wheel]

Thank you all for your advice even the Pizza and FF bloggers. I am considering different routes, and will take my time deciding. Even though I am in the insurance business I have proven to be successful, but would like to expand my career and service the community. If I were to say I wasn’t in it for the money I would be lying but only partially. As I live in a rural area and I am focused on the needs of the community. If you are signed in to this site the rules are that you should be in the optical community, in saying that I have probably spoken or assisted you with an issue at one time or another throughout my career. What’s my point you ask? Well my point is that I have developed many relationships and a very good understanding of the Optical field. All though I have never owned an office I do speak with labs, OD's, MD's, and office staff daily...and have been for years, its all I know. I have always wanted to be proud of my performance, and have been in insurance, but my personality type and goal in life was not to stay in insurance forever. So the bottom line is keep the info coming I have a lot to learn, and I am very passionate about proceeding with my goal. I am confident that with your help, the help of my current business relationships, and the business plan this will work for the community and me ( : Just holding on to faith that the funds will work themselves out....holding holding holding. No...I know it will it always does somehow some way.
Thanks again!

[Johns]

I have managed for two sucessful franchisees. You generally have to pay around 30% of your net (bank deposits) for the month.

What a depressing thought, when after you've "learned" the business side of it after about 6 months, you look forward to a lifetime of 30% of your income going out the window?

PT Barnum must have invented franchises!

[obxeyeguy]

I have managed for two sucessful franchisees. You generally have to pay around 30% of your net (bank deposits) for the month.

I am sure no accountant, and I may be mis-understanding this statement, but my net is no where near my bank deposits. I do have a few other expenses to pay...

[Johns]

I am sure no accountant, and I may be mis-understanding this statement, but my net is no where near my bank deposits. I do have a few other expenses to pay...

I'm sure they referring to "gross". The only people stupid enough to negotiate contracts based on net were musicians that died broke. When a contract is based on net, there never seems to be any when it's time to divvy it up.

That would be a fun check to write every month. I'm sure those guys do a lot of "side" jobs.

[cocoisland58]

I'm sure they referring to "gross". The only people stupid enough to negotiate contracts based on net were musicians that died broke. When a contract is based on net, there never seems to be any when it's time to divvy it up.

That would be a fun check to write every month. I'm sure those guys do a lot of "side" jobs.

It was a percentage of the monthly store deposits whatever that might be called. Both of these businesses were owned by opticians and franchising was a way to get started. They both ended up going private in the end. One still exists and is doing well.

[Java99]

It was a percentage of the monthly store deposits whatever that might be called. Both of these businesses were owned by opticians and franchising was a way to get started. They both ended up going private in the end. One still exists and is doing well.

I can see a franchise being a good way to get started, especially if you want to company support and advertising, or are in a large area with lots of competition. I can't see wanting to stay a franchise, unless you're making so much money it doesn't matter, like the Chick-Fil-A Franchisees do. There's one just across the parking lot from me, and he's won an award every year he's been open for sales. Now that I think about it, I'm surrounded by franchises. Chick-Fil-A, a tax place, a salon all in the same parking lot basically.

[scriptfiller]

Our last PV we started cost us around 350K up front, royalties are somewhere between 15-20% of gross. We opened 04/2008, we just started making money this year (thanks recession!).

You better be in it for at least 10 years if you are looking for a gravy train. My current office is a 13 yr. old PV franchise and things are really GOOD right now!

[Johns]

I can see a franchise being a good way to get started, especially if you want to company support and advertising, or are in a large area with lots of competition. I can't see wanting to stay a franchise, unless you're making so much money it doesn't matter, like the Chick-Fil-A Franchisees do. There's one just across the parking lot from me, and he's won an award every year he's been open for sales. Now that I think about it, I'm surrounded by franchises. Chick-Fil-A, a tax place, a salon all in the same parking lot basically.

Chick-Fil-A has a unique recipe, and a specific way of doing business, plus you know that you will get the same, consistent product and service...every time, regardless of where you are.

On the other hand, I optical franchises have little to offer in the way of uniqueness, with the exception of maybe one-upping the competition on the best BOGO sale, or gimmicky tag line. You can't buy ChickFA chicken just anywhere, but you can buy a Versace or a Coach from just about anywhere.

Now if you really want to make money and be unique, let's talk FezzJohns...

[varmint]

I was thinking of opening up an animal psychologist office...I can picture it now. sorry Mrs Jones, I'll need to speak with your dog alone...that'll be $400.00. I think he will need a couple more appointments before you start seeing results!!!

[Johns]

I was thinking of opening up an animal psychologist office...I can picture it now. sorry Mrs Jones, I'll need to speak with your dog alone...that'll be $400.00. I think he will need a couple more appointments before you start seeing results!!!

Just out of high school, my best friend and I were going to open a pet cemetery. We had a 55 gallon drum with holes in it for the crematorium, and figured after we sold them a headstone, we could toss the carcasses into the dumpster behind the local IGA.

I figured it was a slam dunk. (I still think it would've been). My parents nixed the idea.