Franchising:
From June 2005
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Today, he’s the franchisor behind Beach Hut LLC and planning to open his 12th sandwich shop in the Sacramento Metro Market, after selling his first franchised unit last December for $150,000.
“It’s a good thing the Togo’s deal didn’t work out,” Feist laughs. “Now, other people want to do what I do.”
Feist is in a growing army of franchise entrepreneurs: More than 75 industries engage in franchising in the United States – from well-branded hotels and restaurants to new lawn-care and personnel service providers.
Franchises cost from $19,000 for a cabinet refinishing service to more than $1 million for a McDonald’s, with typical down payments of 25 percent to 30 percent and the balance financed. Buyers may choose from single franchises up to area development agreements.
Still making sandwiches in his Granite Bay store, Feist says he’s very “hands-on” in overseeing the training and opening of each store. “The scariest thing was opening the second store, because I spent every cent I had,” he says. “Becoming a franchisor was less frightening but required jumping through more hoops because of all the government regulations.”
Franchising’s Economic Impact
In 2004, the International Franchise Association reported a study on the economic impact of franchising that found more than 80,000 established franchises in California, generating nearly $75 million in direct economic yield and $187 million indirectly via franchising.
Even in difficult times, franchising creates jobs, as employees in downsized companies look for new careers.
Continued...
“It’s a good thing the Togo’s deal didn’t work out,” Feist laughs. “Now, other people want to do what I do.”
Feist is in a growing army of franchise entrepreneurs: More than 75 industries engage in franchising in the United States – from well-branded hotels and restaurants to new lawn-care and personnel service providers.
Franchises cost from $19,000 for a cabinet refinishing service to more than $1 million for a McDonald’s, with typical down payments of 25 percent to 30 percent and the balance financed. Buyers may choose from single franchises up to area development agreements.
Still making sandwiches in his Granite Bay store, Feist says he’s very “hands-on” in overseeing the training and opening of each store. “The scariest thing was opening the second store, because I spent every cent I had,” he says. “Becoming a franchisor was less frightening but required jumping through more hoops because of all the government regulations.”
Franchising’s Economic Impact
In 2004, the International Franchise Association reported a study on the economic impact of franchising that found more than 80,000 established franchises in California, generating nearly $75 million in direct economic yield and $187 million indirectly via franchising.
Even in difficult times, franchising creates jobs, as employees in downsized companies look for new careers.
Continued...
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