Wednesday, February 07, 2007

Pizza Pizza!

I heard a commercial on the radio for Papa John's franchising opportunities in my area. That gave me a taste for the stuff. Turns out the nearest location is in Munster, IN. What's up with that? There used to be locations around here. Some franchisee must have lost everything...

Have I done my franchisee rant lately? For the most part, a motley crew of burnouts, contract-buyout-ees and social misfits. Sure, it's for the person who wants a change. But you'd have to be a psycho to want to open up one of these things (generally, of course), because I damn well promise you that to make the kind of money you're used to making (assuming you earned your seed money working) you are going to have to work harder than you want to. Because if you were that brilliant of an manager/entrepreneur/businessperson, you wouldn't probably be doing a franchise deal, you'd be a CEO of some place.

(I've actually seen budgets of various actual franchise operations. There are very bumpy economies of scale. You can do OK (generally) as a one-man operation, where you are the 60-hour a week on site manager. But to profitably expand, you pretty much need as many stores as you can personally supervise. Because now you're paying someone to be in the stores all the time. If you accidentally have more stores than you can personally supervise, now you've got to pay some kind of area manager. It's very complicated. There's no free lunch. Except government work, of course. Gotcha!)

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