Making a Profit With a Fast Food Franchise
August 15, 2010 9:58 AM Subscribe
How long would it take to become profitable with a fast food franchise?
posted by purefusion to work & money (11 answers total) 3 users marked this as a favorite
I know a great spot where I think a Rally's (Checkers in some regions of the US) would be pretty successful. It's on a vacant corner lot that used to be a gas station (two other gas stations are across the street, so that probably drove out this one), and the gas station was demolished and the land is now bare. It's main stretch is a four lane interstate route with no median, and the location is near several homes and subdivisions as well as a number of business parks. Nearby competition includes a McDonald's, Wendy's, and Arby's (all on the same side of the street) as well as Subway, a pizza joint, a Mexican and a Greek restaurant inside a shopping plaza across the street. The next closest Rally's happens to be located on the same interstate route, but it is located in a completely different city about 20 minutes away, so if other people are like us, we only go there maybe once a year, and that's only because we know its there. The next closest is about 8 miles away by highway. But we've never gone to that one. There are several others to the north of us (Toledo, Ohio). We are in Perrysburg, one of the more notably affluent cities in the area. But who doesn't like cheap burgers and the world's greatest fries? I'm no fan of burger joints, but Rally's has definitely always been an exception for me.
So my question is, what would it take to make such a franchise successful and how long would it take to pay off the costs, or at least make it into the black? I've never been involved in any sort of franchising venture before, but I've been to the Rally's/Checkers franchise info site. It just doesn't detail anything along the lines of what I'm asking about here.
Has anyone started a fast food franchise from the ground up (including building the building and such)? Any others who've participated in franchising in any sort of way? Any insight is highly appreciated.