The Business of Business

I watched a YouTube video today that was all about franchises, I also subscribe to Entrepreneur Magazine.

It’s interesting to read the quick numbers of how much money a franchise owner spends to open their chosen establishment. Obviously, some are cheaper than others. It’s still an investment though, and I think it’s important to realize from an employee perspective. Even a humble Subway costs about an average of $200,000 but that number comes from a 10 second Google search so don’t hold me to that.

What I’m getting at is that a lot goes into theses places, whether they always look like it or not. A lot of time, money, resources, and hear me loud and clear now, risk. Yes, risk. Chains don’t always make it, look around a given mall, and you’ll see probably at least one boarded-up storefront. Something else may be coming, but intermittently we’re reminded that a business couldn’t make it. That’s not to say you shouldn’t try a franchise someday if that’s your goal. It’s to say that we shouldn’t blame the owners of franchises for taking the portion of the earnings of the location that they can take, and budget for, They earned it by paying into it with all the aforementioned items.

So next time you enter your favorite franchise, (or work at one), know that even though it’s a big corporation, someone more than likely specifically owns it and has put a lot into it.