What McDonald's franchisees earn per year..
- Thread starter Famous1
- Start date
I want to invest in a franchise badly but I don’t want to work in that bitch
Same person probably owns all three.
I'm going to post a vid in here soon
This is a great question. And for those in this thread, a great business lesson. I used to teach competitive strategy and this was one of the lessons except, I used Starbucks as the case study.
Starbucks uses this same strategy mentioned in this thread regarding multiple units within close proximity of each other. The primary reason for this is to restrict competition by increasing the barriers. Property pricing and rental goes up when these franchises enter the market. There are zoning restrictions regarding the number of restaurants in a particular radius. Additionally, as someone correctly stated, more than likely, one person owns the restaurants. This owner will benefit from scaling. He will only need one store manager to run all three. Additionally, he or she will surely have some employees that work at all three. Most importantly, the more food you buy at wholesale, the cheaper the price and the more leverage you will have to negotiate the price down, which of course adds to the bottom line. This is the same for POP and advertising. One more important factor is the tax benefits. Employing that many people in that radius will surely gain him or her favor with local government who will in turn give kick backs regarding taxes.
Lastly, someone said "$150K" ain't shit. Even a millionaire would appreciate $150k/ yr in passive income. Owners are not in the stores at all. Maybe once or twice a month. Plus, I assure you from first hand knowledge, $150k is on the low end of what franchise owners make.
Even then...you're competing with your own business and most importantly paying taxes and bills for all three.
He was probably rich before considering you need a high net worth of liquid capital to even get one. You not owning a Micky D’s unless you already worth a few million.
Thx!
I understand your logic. Please allow me to politely correct your statement. This is where being able to play "the game" comes in. In this particular case, an owner with multiple units would be established as a corporation and would only pay one tax. For example, Walmart doesnt pay taxes on each individual store. The corporate office reconciles the quarterly reports and the taxes are paid/ adjusted accordingly.
Think about this, apple has all of those apple stores across the nation and paid zero taxes in 2018 and won't in 2019. Here is another gem, did you know that as a company, you can report net losses and get it back via taxes? So, if you opened your McDs, had a "loss" due to startup costs etc, you can get most if not all if it back? This same thing can be done with stocks as well. Buy stock, it goes down, you sell. You can report the loss and get it back via taxes. Unfortunately, this type of information isn't traditionally shared at the barber shop.
Again, I understand your logic. However, one must change the way they look at profits, debt, etc. You can have debt and still be profitable. In fact, every fortune 500 company has debt. Yet, all of the stock holders and executives still get paid. One must learn how to use other people's money to make money. As the franchise owner, you could and should get paid from year 1.
Which is why its ridiculous for MF's to ask for $15.00 and hour. The owners wouldn't make any fucking money
You arent really caking off of McDonald's unless you are scaling with multiple locations
Idk about that $2,000,000 in assets to buy in though. My godfather owns a few and I don't think he was a millionaire when he got his first franchise
I found this out a few years ago that owning a franchise isn't really what's up,especially a Mcdonalds where you have to pay so much to them to own the damn thing,while keeping the shit from going down and if you don't have a great manager who knows what to do you're fucked.
You're better off own a food cart
You're better off own a food cart
Despite the clearly targeted tone of the author of the original article, owning a McDonald's is a lucrative business if you are strategic in selecting your location and you are diligent with keeping operating and labor cost at a minimum. And yes, good management is essential.
Check out the article below. I had this young lady fly in to speak at our university about her journey. I hope this may serve as motivation for one of you. The only difference between her and you is that she took the first step and kept walking. The only difference between you and most business millionaires is that they pursued something when others just talked about it. Take the first step.
www.blackenterprise.com
Check out the article below. I had this young lady fly in to speak at our university about her journey. I hope this may serve as motivation for one of you. The only difference between her and you is that she took the first step and kept walking. The only difference between you and most business millionaires is that they pursued something when others just talked about it. Take the first step.
EXCLUSIVE: How This Woman Became the Youngest Black McDonald's Owner in the U.S.
28-year-old Jade Colin is the youngest black McDonald's owner in the U.S. She shares her story about how she was able to own and operate her first franchise.
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Damn...only 150k profit? Fuck that. Now I see why these niccas dont offer condiments unless you actually ask. If I owned one then Ill just hand customer shit straight off the grill. Unless you ask me for a burger wrapper, fry holder or a bag then nicca "here you go, open ur hands". Ima be that one owner that ends the year turning at least a 200k profit. Fuck what you talkin bout.
Post of the year candidate
Won't the city still want their land tax, don't you still pay utilities?
It's clever accounting and exploits holes in laws. This is the shit they told me was unethical in college, but it seems like business as usual in real life.
Yes, the city would prefer to have corporations pay taxes, but sometimes they have to look at the greater good. Such as, how many jobs are being provided? How much value is this business bringing to the community? Is this business attracting other businesses? Etc. Many cities have no or low tax incentives to attract businesses. This is why Amazon was so strategic in selecting its satellite locations. On a related note, universities are usually one of the largest employers in the city the occupy. However, most universities pay little to no property tax. Thus, many times robbing the local community of potential revenue which could be used for infrastructure and community centered programs.
Yes, the business will have to pay utilities. This is an expected fixed and variable cost which is accounted for. Not much can be done here except for ensuring efficiency of use by the employees.
#facts
Most undergraduate universities are not preparing you to be an entrepreneur. Majoring in business at the undergraduate level is a waste of money. Most people do not know that you can pursue an MBA degree with ANY undergraduate degree. Art, music, philosophy, basket weaving, etc. It doesnt matter. You need, a BS or BA, GRE or GMAT score, and the ability to pay. You can get an MBA. Noone really cares if it is a one, two or three year program or if it is online or campus based. There are only two categories of MBA. Ivy league (which includes non Ivy's such as Duke, Stanford, MIT, and others) and then everyplace else. If you cant get into an Ivy, find a one year online program that's inexpensive. Same thing with MD programs.
I was about to post this same fucking thing. Folks need to get the fuck out of here with that bullshit. 2 million down and only $150,000 profit annually? You don't have to go to business school to tell you that this is not a good deal
You'd be better off opening a McDowell's. They've got the golden arches, we've got the golden arcs
Sorry, I kinda went on a tangent.
But to your point, is it unethical if the law allows it?
Here is a question I pose to my class every semester:
Few people like Trump as a person. Many acknowledge that hiding his taxes leads one to suspect that he pays little to no taxes. However, what's the difference in "Suzy Homemaker" or you trying to maximize your tax return which would put your net paid taxes near zero and him as well as corporations wanting to pay little taxes?
Unfortunately, this is why Trump will be reelected. His decisions favor those who are knowledgeable about this loopholes. The market did well under Obama and continued to do well under Trump. The people with money want to continue to make money.
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Let me politely correct something that's being misunderstood in this post. The article states that the initial investment is usually between 1 to 2.2 million. However, what some of you are missing is what came next in the article. You only need 40% of the initial investment to be cash. The remaining cost can be and more likely will be a bank loan. Additionally, the 40% which is now $400k - $880k can be provided by grants, angel investors, a second mortgage on your home etc.
SO ELON MUSK DOESN'T TRIP WHEN HIS STOCK VALUE GOES DOWN $900 MILLION IN ONE DAY? DAMN.
YOU JUST OPENED UP A LOT OF ROOM.THIS IS LIKE WHEN NINO GOT PUT ON TO THE CRACK GAME.