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Hello canadaEH,
Sorry it`s taken so long to get back to you.
One of the problems I`m having is sales projections. When you were first deciding whether you were going to get in the business or not where did you get your sales numbers? I can work out a lot of the other costs once I have a top line number to start with.
Thanks,
mhleslie
I understand what you are trying to do with sales projections but heres the problem.
1. Are you basing it on a food court or in-line store?Red Rock Chili Company offers both and this can alter projections.
2. Would you base these numbers on a (A) location with a high demographic average income area or middle of the pack?
3. How large would your restaurant be?Red Rock Chili Company restauants can be as small as 600 square feet up (food court) to 1600 (in-line).This can alter sales projections a lot.
4. There are other small factors to but the point is you have to look at it from all angles before you can put a hard cap.As for me I visited several Red Rocks until I found one in a city that was close to the same demographics as the city I planned on putting one in.Then I counted how many customers a day they had for several days.When I personally felt like the numbers would be similar I made the decision to buy.If your rent is reasonable it really helps to not have to have a huge volume.I hope this helps.
Thanks Todd
I have not read all the replies - due to timing. It looks like you got much feedback. I spent 15 years in franchising - from the franchisor side. True - you cannot elude to potential profits - it is against federal law.
Talking to existing owners - AND - owners who have recently left the system is a good route. I have tested this by many pursuits of franchises.
| How Do You Like Being a XYZ Franchisee? |
| What Is the Biggest Benefit in Working with XYZ? |
| What Do You Feel XYZ Could Be Providing Better? |
| What was Your Background Prior Starting Up an XYZ Franchise? |
| How Many Employees Did You Start With? |
| What is the Biggest Challenge with this Type of Business? |
| How Fast Was Your Ramp Up Period? |
| How Long Did It take you to re-coop Your Initial Investment? |
| How Many Employees Do You Have Now? |
| What is the Average Age of Your Client? |
| Do You know how many target consumers are in your territory? |
| Who is Your Biggest Competitor in Your Area? |
| Does XYZ Offer Anything Above and Beyond It`s Competition? |
| What Are Your Average Monthly Expenses? |
| Royalties? |
| You Have Found HI to be a Profitable Venture For You? |
| Do You See a Bright Future for the XYZ Business? |
| Best of Luck. |
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