Automate Income with a Franchise instead of an Online Muse?

[Krackato]

Title basically says it all. tl;dr at the bottom.

If you have the money and you're not into online muses (or you've just failed with them), is it possible to "just" buy a brick and mortar franchise business like a McDonald's or Subway or a Dunkin' Donuts and have generate automated income so that you can just leave the country for 15 months while you travel Europe and live the 4HWW dream?

Here's a list of the Top 10 Franchises for 2010:
http://www.entrepreneur.com/franchise500/index.html

It's easier for me to come up with the money for one of the above franchises because they're proven than it is to actually make money. But I imagine that most of the people that buy these franchises find themselves swimming in work.

That's not the dream. The dream is totally automated income that completely frees up your time. Is this possible with a Franchise?

tl;dr - Can I just buy a franchise and make it generate automated income or will I be required to live close to the franchise if I get one?

[Groucho]

I'm so bummed that no one has answered your question. Have you found out any other responses/info regarding your question anywhere else?

Would love to know what you found.

Thanks,
Groucho

[jwmares]

I worked for a franchise recently as a friend started a smoothie franchise. He spent a ton of time at the office initially in order to get things running, but after about a year he was able to find a very competent manager and then work remotely. After that first year, he came in about once a week. I have no idea if this is typical or not though.

[MattHavok]

If you have several hundred thousand dollars to spend on buying a franchise like McDonalds or Subway then you have either saved like a mofo or are a very competent worker and have a high paying job.

Either way your going to have to have excellent management skills and business skills to pull it off. If you have those skills then you probably have the proper skills to start your own company or just buy one (not a popular franchise).

Anyway just my two cents since ive started working in the business world.

[seth121]

You know that is actually a really good question.

Franchises are actually quite like a niche product. For instance the franchise that you may have in mind has to be situated in an ideal location. If the location is not prominent or has a lot of foot traffic then the business may have a hard time succeeding. But the good locations or spots for a franchise are usually taken or the leases for a high traffic area would be quite expensive. So on top of the franchise initial startup cost you will be paying a lease or getting a commercial loan, which are also quite expensive and around 10% interest, which can be hard when you are not making money initially.

But if you were to do a franchise the best approach might be to research a particular location and then look at the traffic those businesses get. Once you've done that then try to analyze how many workers they have, their overhead expenses, etc.

This will help you kinda analyze whether you will have a better chance.

And some franchises to exceptionally well, but you have to pick a really good location. It's actually not so much about the franchise itself, but the location. For instance you know a Denny's in a certain area has horrible food, but yet always busy.

The weirdest thing is that some of the most successful franchises I see are by bars or night clubs, so when the kids get done partying they all want to eat something salty. So they usually go to the closest Denny's or McDonalds.

[Krackato]

I haven't discovered much. I have bought a few books on Franchises and I'm learning about franchising.

It's amazing how there's not that many communities where you can say "I want to make money and have it be on 100% autopilot. No seriously, I want travel the world and make money automatically and not have to touch it ever."

Is anyone having success with Automation? I love Tim's book and nothing would make me happier than to be able to implement the automation aspect of it. Currently I'm working with Internet Marketing and trying to launch small information products. Before that I was in the PPC > CPA offer game.

Finally, I just thought, I'm not starting from scratch. Maybe I can just buy a STABLE franchise business.

I'd love to hear anyone else's thoughts.

If you've succeeded at this Automation thing, let me know.

[allthatremains]

I was just thinking about this the other week. One thing to consider about this is that people make a business work. Find the right people and you will be happy with the results.

As far as your muse concept, find someone who has the right mindset and work ethics and lean on them as you begin. That way you leverage their experience, instead of doing it all yourself. Offer incentives for growth, like ownership or income % to give them a future to look forward to.

Take a bit of time and sit in stores and look at the different people working in those stores. Just watch. When a good candidate catches your eye, test them.

If I were to do a fast food franchise, I know the first person I would look at. This man has been working at joint I frequented for several months. Always has a smile. Polite, and respectful, and really feels genuine. One day I ordered 4 items and drove off only to find 3 in my bag. The next week I pulled up, and he stopped the order taker and leaned out to tell me he remembered, and offered me extras to apologize. This guy is ON it. I'd ease him into a management/owner position in a heart beat.

Just as important as selecting the right franchise is bringing on the right people. Perhaps even more-so.

[mrhandyman]

Starting a franchise can be less expensive than starting a business from scratch, and it comes with a built in reputation and customer base because consumers recognize the name of the franchise.
There are many franchise opportunities uk (http://www.mrhandymanfranchise.co.uk/).

[Avex]

I've interviewed a franchise owner at a very interesting location - 2 green railroad cars turned into a restaurant. She was still making sandwiches for me just about every other day.

Think about it - franchise is usually a store business with very high turnover rate and very low skilled workers. How can it survive when the manager is far away adventuring in a far away land?

[B-rad]

Hire a manager to take your place. I don't see why you couldn't. Honestly though, the idea of running a franchise for any length of time makes me feel kind of sick.

[justinblue111]

Starting a franchise can be less expensive than starting a business from scratch, and it comes with a built in reputation and customer base because consumers recognize the name of the franchise.
There are many franchise opportunities uk (http://www.mrhandymanfranchise.co.uk/).

That's true and even it requires less marketing as the product is already known and trusted by the users. And I agreed too that there are so many franchise business opportunity in UK and to select the perfect one you can take help from a franchise consultant. They keep themselves updated and hence can recommend the best suitable one.:)

[paulwbrowning]

I franchised my first business. You need to:

1. Build a pilot business and prove it makes money
2. Sell one or two franchises to prove it works for others/elsewhere
3. Get appropriate licenses depending on your country
4. Pay a lawyer for contracts
5. Provide ongoing training and support

If you want to buy one you are looking at a substantial sum and you will have to run it to start with. IF it is making enough money you could get a manager in but you will have to pay them and staff.

I know guys running Subways and Coffee shop franchises and they are working like dogs.

Regards

Paul Browning