What McDonald's franchisees earn per year..

Amajorfucup

Rising Star
Platinum Member
But each store is almost 2 million just to get started. You’re not seeing a return on your investment for damn near 20 years.
Even if those figures were true (and they're not) it presumes you have and are using $2million of your own liquid cash as startup capital. Dont work like that. You assume debt in the form of a business loan, and amortize and profit simultaneously.
 

Tito_Jackson

Truth Teller
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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.

Lol!! Ironically, most bothers in the d game are great businessmen. It's the industry they initially chose that's the problem. On the low, I have helped many former d-boys transition and many are doing really well. They laugh about the similarities and how the "legit" game is more corrupt than the d game.
 

GOD MATERIAL

GOD MATERIAL
Registered
Lol!! Ironically, most bothers in the d game are great businessmen. It's the industry they initially chose that's the problem. On the low, I have helped many former d-boys transition and many are doing really well. They laugh about the similarities and how the "legit" game is more corrupt than the d game.
YEAH I HAVE TOLD SOME PEOPLE THAT THE CORPORATE WORLD IS AS SAVAGE AS THE DRUG GAME BECAUSE THEIR ARE SNITCHES/WHISTLE BLOWERS AND IDEA TAKERS, CORPORATE RAIDERS THAT TAKE OVER YOUR HOOD AND GET RID OF YOU, ETC.

I LIKE DEALING WITH STOCK WAY MORE THAN DEALING WITH REAL ESTATE. STOCKS ARE EASIER TO GET RID OF, NO ONE CAN SUE ME BY TRIPPING OVER A STOCK ACCOUNT, YOU CAN GET CASH FLOW, YOU CAN BORROW FROM THEM, YOU HAVE SHAREHOLDERS LAWSUITS AND OVER TIME THEY INCREASE IN VALUE. OWNING STOCK IS WAY MORE APPEALING TO ME THAN OWNING REAL ESTATE.
 

phanatic

Rising Star
BGOL Investor
#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 need to do this asap. Dude...the conversation was motivational.
 

BronxBomber

Rising Star
BGOL Investor
It’s a TON of work, they seem to leave that out. Good money if you are lucky enough to find a good manager and keep them around.
 

godofwine

Supreme Porn Poster - Ret
BGOL Investor
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.
Even with that understood, the profit doesn't come close to making purchasing a McDonald's a worthwhile endeavor.

I understand that most businesses do not have great profit margins for the first few years, however it is going to take you 10 years... Actually, more than 10 years to get a return on your investment, be it $800,000 and the culmination of properties and loans to be a part of the McDonald's brand I can't see that as worth it
 

godofwine

Supreme Porn Poster - Ret
BGOL Investor
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.
What classes do you teach and what undergrad/post grad degrees do you hold?
 

deputy dawg

~wait a cotton pickin' minute...
BGOL Investor
Like EVERYTHING ELSE in life~

McDonald’s black franchisees are leaving the chain as cash flow disparity between them and white counterparts grows

Published Mon, Dec 9 2019


 

RoomService

Dinner is now being served.
BGOL Investor
Like EVERYTHING ELSE in life~

McDonald’s black franchisees are leaving the chain as cash flow disparity between them and white counterparts grows

Published Mon, Dec 9 2019


Drew McCaskill talks about this... check out the video
 

Tito_Jackson

Truth Teller
Registered
Even with that understood, the profit doesn't come close to making purchasing a McDonald's a worthwhile endeavor.

I understand that most businesses do not have great profit margins for the first few years, however, it is going to take you 10 years... Actually, more than 10 years to get a return on your investment, be it $800,000 and the culmination of properties and loans to be a part of the McDonald's brand I can't see that as worth it

I respect your opinion, but I strongly disagree with your position. For anyone to imply that $150K a year is insignificant is not a realist. I stated this fact in another thread, but the median income of a black household in America is about $35k. Any black person earning $150K annually is in the top 5% of black households.

Secondly, as someone else pointed out earlier, people in this thread are confused about what return on investment (ROI) means. Return on investment is simply getting capital back after your initial contribution. You are assuming you have to be 100% debt-free to make money. That's not how businesses work. Having debt isn't a bad thing. It is just a thing. Poorly managing debt is a bad thing.

Lastly, once a person has purchased his or her first franchise (or any other business) and has had consecutive profitable years (income is more than expenses), it is much much easier to purchase additional units. Banks are in the business of loaning money, this is how they make money. So......

One of the first lessons I teach is that credit is simply one's ability to make payments over time. Low income affects this ability. High expenses affect this ability. Industry trends affect this ability. Your consecutive on-time payments demonstrate this ability. Having a high debt to income ratio demonstrates an inability. Making a large lump sum payment demonstrates your ability to pay but does not demonstrate an ability to make payments over time which in turn does not benefit the bank. Therefore, they will not necessarily give you points for that because they do not make money, so they really do not want you as a customer. I know it sounds counter-intuitive, but this is how it works. Live and die by this definition in your personal and business lives and you will always be able to get a line of credit to purchase homes and businesses.
 
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cold-n-cocky

BGOL vet down since the “56k stay out!” days
BGOL Gold Member
Fuck McDonalds.

Ran Don Thompson, a lifelong employee who ascended to the CEO role and was among the first proponents of all day breakfast to boost their struggling sale, out of the position after only 3 years, then the white dude came in implemented all his ideas and was praised as a savior. Fuck em.

Don made money as an early major player in Beyond Meat and will have the last laugh now that McDonalds is talking about making it part of their offerings.

 
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Tito_Jackson

Truth Teller
Registered
What classes do you teach and what undergrad/post grad degrees do you hold?

This deviates from the McDonald's conversation which I believe is a great conversation. But......

I teach and have taught science (Biology, Chemistry, Biochemistry), Mathematics (Calculus and Statistics via coding), and business (competitive strategy and business for non-profits).

Without sharing specifics, I hold 5 degrees in which my A.S. in Biology is the one I am most proud of and has the most significance. I discovered BGOL while working on my B.S. lol!! I took a break between D.O. school and my residency to teach and conduct research. As an educator, I also teach a free Algebra course in the most disenfranchised area of the city. This class targets young black males between 5th grade and 10th grade. We offer free uber rides to any student anywhere in the city to attend. Studies have shown that one's ability to excel in Algebra determines one's future success in post-secondary courses as well as career choices. The earlier a student can master Algebra, the more likely he or she will attend and graduate college and enter into the STEM field. This is important to me because black males are last in this area. I believe I can help young brothers succeed by removing this barrier. This premise is data-driven and supported.
 
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Tito_Jackson

Truth Teller
Registered
Fuck McDonalds.

Ran Don Thompson, a lifelong employee who ascended to the CEO role and was among the first proponents of all day breakfast to boost their struggling sale, out of the position after only 3 years, then the white dude came in implemented all his ideas and was praised as a savior. Fuck em.

Don made money as an early major player in Beyond Meat and will have the last laugh now that McDonalds is talking about making it part of their offerings.

Yes, it is a dirty game. However, anyone aspiring to be a CEO must reconcile the fact that the only direction left after ascending all the way up to the top is out. Don is straight though, severance pay, bonuses, stock options............he's good. lol!!
 

man-machine

Rising Star
BGOL Investor
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.

Indeed, Broke folks ain't buying one. A food truck might be more inline for People with some cash to invest but are far short of a million bucks.
 

Tito_Jackson

Truth Teller
Registered
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.

I wanted to answer the first part of this question.

No. Elon Musk doesn't trip when the stock goes down 900 million. A couple of points to know about this situation.

1. CEO's like Elon Musk earn "salaries." Even as founders of the company, once the company goes public, it is now a shared risk and the founders are technically employees with a voice.

2. Elon Musk earned 2.3 billion last year while receiving minimum wage. Read the following article for more context.

3. Telsa stock has seen a 63% growth over the past 5 years and a 7.7% growth over the past week. Investors like me are not complaining at all.

4. You do not lose money with stocks until you sell. REMEMBER THIS!!!

5. Try to have $1000.00 ready at a moment's notice to invest. When you see red (blood in the water) or hear bad news about a major company (not Sears etc), then it is time to be a shark and be bullish for the long term.
 

Tito_Jackson

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Registered
Indeed, Broke folks ain't buying one. A food truck might be more inline for People with some cash to invest but are far short of a million bucks.

My brother, please fight this negative attitude toward entrepreneurship. You do not have to be a millionaire to start a business or own a franchise. However, you do have to have a millionaires spirit and work ethic. This is where most of us drop the ball. With credit, you can literally buy anything. But, so many black folks credit is shot to hell. Also, one may argue that black folk can't get loans. Yes, statistically, blacks are least likely to be approved for business loans. However, we must first make we have done everything to present ourselves in the most favorable light. This includes having a full, well thought out business plan in a thriving low-risk industry. Restaurants statistically have the lowest one-year success rate, so this is not appealing to the banks. There is no real industry research on barbershops, plus most owners do not plan to scale and have multiple units, so this is not appealing to the banks. Do you want money for a non-profit?? Nope, this is blasphemy to a bank.

I have posted a lot in this thread because finance is where the power is. MLK realized this towards the end of his life. This is why he was murdered. Fred Hampton knew this and talked about this to poor black and white people. This is why he was murdered. There are many others including presidents that were murdered because of the threat of banks losing money and power.
 

bubba2k5

Rising Star
BGOL Investor
My brother, please fight this negative attitude toward entrepreneurship. You do not have to be a millionaire to start a business or own a franchise. However, you do have to have a millionaires spirit and work ethic. This is where most of us drop the ball. With credit, you can literally buy anything. But, so many black folks credit is shot to hell. Also, one may argue that black folk can't get loans. Yes, statistically, blacks are least likely to be approved for business loans. However, we must first make we have done everything to present ourselves in the most favorable light. This includes having a full, well thought out business plan in a thriving low-risk industry. Restaurants statistically have the lowest one-year success rate, so this is not appealing to the banks. There is no real industry research on barbershops, plus most owners do not plan to scale and have multiple units, so this is not appealing to the banks. Do you want money for a non-profit?? Nope, this is blasphemy to a bank.

I have posted a lot in this thread because finance is where the power is. MLK realized this towards the end of his life. This is why he was murdered. Fred Hampton knew this and talked about this to poor black and white people. This is why he was murdered. There are many others including presidents that were murdered because of the threat of banks losing money and power.
Thx for all the info you’ve dropped!
Can you recommend any industries that fit this description?
 

Man_Of_STeeL

鋼鉄の人 - より似たチタン
Platinum Member
I stumbled on to this guy's channel several years ago....

he offers some insight...if you're tryna invest in a franchise....and he has videos offerin' advice no matter your financial situation....



 

Dr. Truth

GOD to all Women
BGOL Investor
Even if those figures were true (and they're not) it presumes you have and are using $2million of your own liquid cash as startup capital. Dont work like that. You assume debt in the form of a business loan, and amortize and profit simultaneously.
That’s not true or how it works. You need a net worth of 1-2 million dollars. Not liquid cash you need a percentage of cash to put down. A business loan won’t cut it. They need those assets in case you go belly up they need something to re coup . A business loan is just debt and does them no good and only hurts the franchisees. You need something they can take from you in case you cost them.
 

Famous1

Rising Star
Platinum Member
My brother, please fight this negative attitude toward entrepreneurship. You do not have to be a millionaire to start a business or own a franchise. However, you do have to have a millionaires spirit and work ethic. This is where most of us drop the ball. With credit, you can literally buy anything. But, so many black folks credit is shot to hell. Also, one may argue that black folk can't get loans. Yes, statistically, blacks are least likely to be approved for business loans. However, we must first make we have done everything to present ourselves in the most favorable light. This includes having a full, well thought out business plan in a thriving low-risk industry. Restaurants statistically have the lowest one-year success rate, so this is not appealing to the banks. There is no real industry research on barbershops, plus most owners do not plan to scale and have multiple units, so this is not appealing to the banks. Do you want money for a non-profit?? Nope, this is blasphemy to a bank.

I have posted a lot in this thread because finance is where the power is. MLK realized this towards the end of his life. This is why he was murdered. Fred Hampton knew this and talked about this to poor black and white people. This is why he was murdered. There are many others including presidents that were murdered because of the threat of banks losing money and power.
Nice...
I have a few ideas for an non profit. What would be the best source for potential funding?
 

Tito_Jackson

Truth Teller
Registered
Nice...
I have a few ideas for an non profit. What would be the best source for potential funding?

I would never discourage anyone from establishing a non-profit. But, I always start out by saying if you are expecting to make a lot of money and live the ballers life, this isn't for you.

1. Loans are out of the question because banks can't see a real return on this, especially if it is a non-profit without a "for-profit" model. Here is an example of one that works.

2. Grants are available for those with a 501c designation. However, grants are becoming fewer and more competitive. You more than likely will need to hire a grant writer to assist in crafting a thorough application. Definitely do this and apply for hundreds. Yes, hundreds. This is a job and you have to approach it that way.

3. What I teach to be 1 of 2 of the most important factors is self-sufficiency as a non-profit. Most non-profits fold because the funding they were receiving expires or runs out. This type of dependent business model is rarely sustainable. Your non-profit needs to produce a viable product that can be used to keep the business running.

4. The 2nd most important factor is your non-profit board. This board shouldn't be just talking heads or people you are cool with. These need to be people who have influence in the community locally or globally who can lead the charge regarding soliciting funds.

Several weeks of the syllabus packed into one post. lol!!!
 

Tito_Jackson

Truth Teller
Registered
How much footlocker stock you got?

None. Five years ago Footlocker was trading at $56.56 and now it is at $38.39. That's a 32% depreciation. No thank you. The shoe industry will continue to see losses due to online ordering and these weirdo kids wanting to be different. Plus, many manufacturers have direct to consumer orders which is cannibalizing the brick and mortar stores. Not to mention all of the specialty stores popping up. If a kid wants to really get that exclusiveness, they ain't going to Footlocker, Champs, Footaction, or Eastbay which are all the same company....... Foot Locker, Inc. (FL)

Footlocker Inc (FL) live stock report
 

cold-n-cocky

BGOL vet down since the “56k stay out!” days
BGOL Gold Member
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.

Cities are one big ass TIF district and by the time any of the increased value of the property and increases in tax revenue can hit the municipal general fund, the businesses that “needed” TIF to develop and/or move in are long-gone. Millions and MILLIONS of dollars are siphoned off each year and then councils raise property taxes or start adding random ass fees to tax bills, screwing the homeowners to the benefit of the already wealthy corporation.

TIF is one of the more abused incentive programs in the history of government; started out to be used to encourage development in distressed areas; over the last 20 years has been the first thing asked for by developers and offered by city councils. It’s theft in plain sight.
 

Tito_Jackson

Truth Teller
Registered
Cities are one big ass TIF district and by the time any of the increased value of the property and increases in tax revenue can hit the municipal general fund, the businesses that “needed” TIF to develop and/or move in are long-gone. Millions and MILLIONS of dollars are siphoned off each year and then councils raise property taxes or start adding random ass fees to tax bills, screwing the homeowners to the benefit of the already wealthy corporation.

TIF is one of the more abused incentive programs in the history of government; started out to be used to encourage development in distressed areas; over the last 20 years has been the first thing asked for by developers and offered by city councils. It’s theft in plain sight.

You are exactly right. This is an example of welfare for the rich/ government handouts. BUT, they only call it that when comes to poor people.....regardless of race. Trump's food stamp move is an example of this.
 
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