Hello all,
I am intrested to take up a new franchise in GTA.
I have intrest in following:
1) Coffee Franchise
2) Dollar stores
3) Restaurant franchise ( Apple jack restaurant)
4) Postal net / canada post franchise
5) UPS stores
I listed the above in order of my intrest.
Can invest upto 125K.
Pl. suggest following:
1) which one of the above is better?
2) Can i get loan?
3) Which area is better?
Thanks.
2
You might need to have more funds to acquire a decent franchise here in Canada.
Here is one that is in good standing : http://www.cfa.ca/FranchiseDetail.aspx?item=McDonald%27s+Restaurants+of+Canada+Limited
Also, there are more people on their wait list.
1) All the industries are on a down ward trend. So wait and watch the closures that are coming up first before you get into one. The surveys will be lopsided.
2) You surely can get a Business loan. Try BDC or your friendly Neighborhood Bank and if you have good relationship with them, then, you will come recommended.
3) There are people who RUN a business that does just surveys. They will charge you a fee. And you get what you pay for. Not too much. That is just to satisfy the lenders.
As for the list with your interest: I think they all are risky for a star. Initially, with a few, you and your family will never go hungry right from the start, if you like what you sell. (Or what you cannot sell) The others won't fly.
What is your expected rate of return? 30% Just to keep you a float?
Good Luck.
Freddie.
Quote:
Originally posted by ftfl
You might need to have more funds to acquire a decent franchise here in Canada.
Here is one that is in good standing : http://www.cfa.ca/FranchiseDetail.aspx?item=McDonald%27s+Restaurants+of+Canada+Limited
Also, there are more people on their wait list.
1) All the industries are on a down ward trend. So wait and watch the closures that are coming up first before you get into one. The surveys will be lopsided.
2) You surely can get a Business loan. Try BDC or your friendly Neighborhood Bank and if you have good relationship with them, then, you will come recommended.
3) There are people who RUN a business that does just surveys. They will charge you a fee. And you get what you pay for. Not too much. That is just to satisfy the lenders.
As for the list with your interest: I think they all are risky for a star. Initially, with a few, you and your family will never go hungry right from the start, if you like what you sell. (Or what you cannot sell) The others won't fly.
What is your expected rate of return? 30% Just to keep you a float?
Good Luck.
Freddie.
Thank you freddie.
Keeping in mind 30 % gross profit on annual sales, can i expect 15% net after allowing for lease rent, salaries, water & electricity etc.
Assuming that i make weekly sales 16000 $, it works out to 52 x 16000 = 832,,000/ annual sales.
30% Gross profit works out to 249,600$.
My question :
1) Can i expect 30 % return on sales on the five categoroes which i mentioned in my post?
2) I have roughly calculated 165,000 $ expenses. Will it be suffiecient for expenses?
My calculation is this :
a) Lease - 50,000$
b) Salaries - 4 persons - 3 x10 hr x 7days x 52 weeks x 10$ = 109,200$
c ) Water, electricity, Consumables - 400$ x 12 M = 4800$
3) Weekly sales ($ 16000), which i mentioned, can i expect in the businesses i mentioned?
Location: carl sagan's universe
Posted on: 26-01-09 08:25:45
Hi NM,
If u r interested in a Wimpy's, I have a friend who wishes to sell his unit in Vaughn.
I can put you in touch with him.
Maybe you can sound him out on sales and other numbers. Get some inside info.
If u r interested outside the GTA area, there are subways and other franchises available for less than 125k.
NM,
When you take a Franchise Location. Please take into consideration that you have to pay Royality Fee..> Which differs from compnay to company, can be around 5- 8 % of Gross Sales. Also You have to Pay for National Marketing, Which is roughly b/w 1-2 percent.
Plus You also have to pay polling fee so that Corporate of ur Franchise should be able to capture your gross sales.
Hydro, water, telephone runs around $ 1000/Month.
Also if you are going to accept Credit cards then there is 1- 3 % charge you have to pay.
In regards to Salary and Wages.... take into Consideration you have to pay taxes as well.
Beside base rent, there may be other commited cost. as well as otehr direct cost, like repairing , Decoration, and Lot of different items.
I hope this will help....
Let me know if you have any other questions.
Quote:
Originally posted by investpro
Hi NM,
If u r interested in a Wimpy's, I have a friend who wishes to sell his unit in Vaughn.
I can put you in touch with him.
Maybe you can sound him out on sales and other numbers. Get some inside info.
If u r interested outside the GTA area, there are subways and other franchises available for less than 125k.
Investpro,
Thank you for your reply.
I am just doing research now b4 getting into Franchise / business.
I shall appreciate your replies to my questions which will be valuable for all.
If you can advise me which in your opinion is the better option for an investment of 125 K to 200 K. My ivestment will be 125 K and i will approach bank for balance 75 K.
Quote:
Originally posted by tigercanada
NM,
When you take a Franchise Location. Please take into consideration that you have to pay Royality Fee..> Which differs from compnay to company, can be around 5- 8 % of Gross Sales. Also You have to Pay for National Marketing, Which is roughly b/w 1-2 percent.
Plus You also have to pay polling fee so that Corporate of ur Franchise should be able to capture your gross sales.
Hydro, water, telephone runs around $ 1000/Month.
Also if you are going to accept Credit cards then there is 1- 3 % charge you have to pay.
In regards to Salary and Wages.... take into Consideration you have to pay taxes as well.
Beside base rent, there may be other commited cost. as well as otehr direct cost, like repairing , Decoration, and Lot of different items.
I hope this will help....
Let me know if you have any other questions.
Thanx for your advice on the expenses front.
Some more calculations have to be done taking into account of what you advised me.
But can you advise me, in your opinion, which of the above in my first post is better option ?
Thanks
