Anybody know anything about setting up franchises?

[Skyskier]

So I've been operating a "mom & pop" picture framing gallery in Hemet for the past 30 years ( 28 of those years in this same building ) and I've seen a lot of others come & go. At one time there was 13 frame shops in this ( used to be ) small town and we've managed to outlast all of them. Right now there is one other picture framer here in town and it's a michaels art & frame store. We do A LOT of business RE-DOING framing jobs that were improperly done by their hourly wage earning framing dept. employees. Two things that set us apart from all the rest is : #1. Our extensive selection of old photos from all over southern California is a huge bonus for us ( www.theoldphotocompany.com ) and #2. We do in house restoration of clients old family photographs.

Anyway, reading a lot of posts here and at PB about people getting laid off and comments some wishing or hoping to do their own thing etc.,etc., I'm thinking now might be a good time to look into franchising.

 

[Cigalert]

Box it up and sell it. You can control the materials used, get kick backs from your suppliers and demand 5% of total sales just for using your name. What do you picture (hahahah) a single retail store costing for start-up?

 

[Skyskier]

New equipment,: 1 moulding chopper, 1 frame joiner, 1matt cutter, computer, scanner & printer , 1 paper cutter maybe $15 K,.... another couple grand for matt board stock, glass, stapler misc small hand tools etc.
Figure for 20 K one could get ALL equipt. & supplies to get started. Plus I've got ALL the right major suppliers to buy from and who NOT to buy from. Then of course you have a storefront which depending on where one would want to locate at could be who knows what ? The building we've been in for 28 years is in the old part of town. I'm sure we could do much bigger numbers if we were in a mall of some sort, but we like setting OUR hours ( tuesday thru friday 10 to 5..........unless we decide to stay over a day or two extra ) I know I don't have to tell you, overhead will make or break a biz

 

[PVHCA]

From experience, be prepared to do alot of baby sitting and watch dogging. We sold franchises from 1975 to 1990 and finally my M.I.L. and wife's Aunt got tired of chasing $$$ and getting calls from suppliers. We own the name HCA but allowed those franchises to buy out. We still hold first rights to re-purchase stores upon retirement or? Good luck and get a quality attorney and franchise salesman.

 

[Retired Member]

What kind of advertising do you do to promote your "franchised" business? What kind of training and support do you offer? The list goes on. The best way would be to start a couple other retail outlets, in different areas, and if they work out sell them. Once you have a number of stores, then you could look into franchising. Normally franchised business have county, state, or national over the air advertising, depending on their demographic. Thus the benefit to become part of that franchise.

 

[Skyskier]

All very valid points brought up thus far, stuff I have not considered
starting to sound like a major PITA

 

[ChumpChange]

Sounds like a very specialized, skilled job which is why those hourly Michaels employees mess everything up.....not something that you'd want to franchise out and let other people destroy the name you've made for yourself.

 

[Skyskier]

Maybe "franchise" was the wrong word What got me going on this was, about 25 years ago I had a customer that came into the shop pretty regular. Time came he "retired" and was moving to Oregon he asked me what I'd charge him to hang out here for 2 weeks and "learn" the trade, as him & his wife wanted to open a little shop of their own. I told him he could hang out all day,everyday but I'd work him like a rented mule
After the 2 weeks he had all the contacts of suppliers, print dealers etc., knew how to cut a fancy matt and build a tight picture frame , and actually made a go of it in Oregon. This was before the day of computers & email so the photo restoration was a whole nother facet I couldn't teach him. The way I've got my website set up now it would be a simple matter of somebody scanning a photo, email to me, I work it over and email it back and they could print it off in house. The photo restoration is what draws in a lot of our "new" customers and once they have the restored photo they need a frame for it and then there's always the framed art hanging here in the gallery that gives the new people ideas on re-framing their existing artwork or purchasing some new stuff. Maybe I should be thinking more along the lines of a "Art & Framing" gallery consultant :hmm The guy did come back in before he left, and gave me $500 pretty good money 25 years ago :thumbsup