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A comment on It costs $10k to ‘own’ a Chick-fil-A franchise. Parent comment

Re:It costs $10k to ‘own’ a Chick-fil-A franchise by kelnos on Sunday January 19, 2020 @04:16PM (#22094138)
Given how much it costs to open the restaurant itself, it seems like the franchise fee (for most franchises) is an odd thing to focus on. If I'm going to be spending $1.6M-$2.3M just to build a Taco Bell location, I'm honestly not going to be too concerned about the $30k franchise fee I need to pay corporate up-front. It's a drop in the bucket.

Regardless, corporate is always incentivized to help their franchisees succeed; they wouldn't really have a business without them, and of course they want their cut of sales/profits to be a higher absolute value.

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Re:It costs $10k to ‘own’ a Chick-fil-A franchise by lonelappde on Sunday January 19, 2020 @04:56PM (#22094395)
A franchise is barely above MLM. Local "owner" is really an employee, takes on the risk and gets minimal profits.
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Re:It costs $10k to ‘own’ a Chick-fil-A franchise by kelnos on Sunday January 19, 2020 @04:58PM (#22094406)
For Chik-fil-A, yes, since corporate fronts all the money and owns the location and improvements; there, you're maybe a little more than an employee-manager, but not by much. For most others, not so much, since you own the result of your initial investment.
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Re:It costs $10k to ‘own’ a Chick-fil-A franchise by sixtypoundhound on Sunday January 19, 2020 @05:18PM (#22094519)
Uh...this is a common conflict between owner-operators and franchise groups.

Also a common area of abuse. There was a sandwich shop chain in the US where this got very ugly a few years ago...

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Re:It costs $10k to ‘own’ a Chick-fil-A franchise by reiichiroh on Sunday January 19, 2020 @05:32PM (#22094596)
Was it Quiznos with the franchisee committing suicide in the store bathroom with a shotgun?
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Re:It costs $10k to ‘own’ a Chick-fil-A franchise by sixtypoundhound on Sunday January 19, 2020 @05:35PM (#22094618)
Yup. But it was more than that one guy, the whole model was crap and they kept selling more units...

https://www.restaurantbusinessonline.com/financing/brief-his...

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Re:It costs $10k to ‘own’ a Chick-fil-A franchise by philwelch on Sunday January 19, 2020 @06:22PM (#22094859)
Which is really a shame since the sandwiches are so good.
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