Business majors: ROI on Krispy Krunch Chicken

Discussion in 'Off-Topic Discussions' started by me again, Nov 18, 2014.

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  1. me again

    me again Well-Known Member

    Krispy Krunchy Chicken is a fascinating fast food outlet that partners-up with pre-existing facilities (like gas stations). They just built one inside a local gas station, so I looked them up to see if they have a website.

    Here is their advertised ROI:
    http://www.krispykrunchy.com/img/partnering/roi.v2.jpg

    Here is their website:
    Krispy Krunchy Chicken Partnering Opportunities

    It's fascinating that they are showing their suggested ROI. It looks like excellent marketing skills by the franchisers.

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    Last edited by a moderator: Nov 18, 2014
  2. GoodYellowDogs

    GoodYellowDogs New Member

    This seems to be similar to Chester Fried Chicken - also in different gas stations, truck stops, etc.
     
  3. me again

    me again Well-Known Member

    Here is an interesting McDonald's comparison for start-up costs:

    http://finance.yahoo.com/news/heres-costs-open-mcdonalds-restaurant-142630479.html
     
  4. sideman

    sideman Well Known Member

    I've always wanted a McDonald's franchise to add to my portfolio but they're too rich for my blood. Subway might be more doable. The only thing that keeps me from exploring it further is the 7 days a week, holidays included, workdays. Also the franchisor usually wants the franchisee to own multiple locations. This would be great if they're all plum locations but you're always going to have the winners supporting the losers.
     
  5. me again

    me again Well-Known Member

    It's a 24/7 pressure-cooker operation. Also, finding reliable help is another giant headache.

    Ah there's always a catch! Subway doesn't go under very often, but I did see one go under a while back and was very surprised because it was in an excellent location.
     
  6. me again

    me again Well-Known Member

    Ah, I've never heard of Chester's Fried Chicken, but it looks similar to Krunchy's Chicken.

    https://www.chestersinternational.com/franchising/

    [​IMG]
     
  7. Maniac Craniac

    Maniac Craniac Moderator Staff Member

    It's absolutely delicious and absolutely terrible for your health. Enough grease drips off of the chicken to qualify it as an effective thirst quencher.

    Last I checked, about 7 years ago, two locations near to me offered a deal where $3 got you 2 pieces of chicken, some potato wedges and tiny bit of coleslaw. If it wasn't death-defying, I would have eaten it every day.
     
  8. SteveFoerster

    SteveFoerster Resident Gadfly Staff Member

    That wouldn't be death-defying, that would be death-embracing!
     
  9. GeeBee

    GeeBee Member

    I think McDonald's just has a grill, not a pressure-cooker.
     
  10. me again

    me again Well-Known Member

    Ha, yeaa, the kitchen only has a grill. The pressure-cooker is inside the owner's or managers chest or head as he tries to run the place 24/7.
     
  11. me again

    me again Well-Known Member

    Oh yeaa, fried chicken tastes great. It's the strokes and heart attacks that are a pain.
     
  12. SurfDoctor

    SurfDoctor Moderator

    Been there, done that with a franchise. Not a McDonald's but something with similar hours and service. All I can say is STAY AWAY; IT'S HELL ON EARTH! Not joking.
     
  13. John Bear

    John Bear Senior Member

    I was once VP, Advertising for Midas-International, the muffler/car repair franchise.

    For accepting new franchisees, Midas had no interest in automotive experience. They spent much time looking at the personality and lifestyle of the would-be buyer. Of many factors, the most important was a history of active community service and working for social change. And they had a fantastic success rate with happy successful franchisees. (One of the amazing moments was when they were having trouble keeping shops open on Chicago's south side. Following much negotiation, they gave three muffler shops to the Blackstone Rangers, then the main street gang. They were run well and honestly for years, and Midas reaped significant royalties where there had been none.)

    Buying franchises is, as others point out, an incredibly risky business. Two of the huge and notorious failures have been in chicken: the Minnie Pearl Chicken System, and Chicken Delight (Served Just Right). Midas people, with all their knowledge and money, had two significant failures when they tried new franchises: waterbed showrooms (Innerspace), and a chain of pie shops (Virginia Hardy's). But then they hit it big with SuperCuts.
     
  14. sideman

    sideman Well Known Member

    In the industry that I'm in there have been people in the past that have tried to franchise this business and turn it into a turnkey operation. Unfortunately you need knowledgeable and skilled people to work the business, and be experienced yourself. Not saying it's impossible to do but it's tougher than taking someone and teaching them how to make a sandwich. Anyways, I was approached and the pitch was that I'd have resources that I wouldn't have going it alone. But here's the kicker: they wanted me to pay them tens of thousands of dollars and I'd still manage the business. So as an owner I'd give up ownership and become a manager for them. Of course I turned them down with a multitude of others doing the same.
     
  15. me again

    me again Well-Known Member

    Most franchises want a tremendous (ridiculous) amount of up-front money in return for:
    1. Name brand recognition
    2. A standard operating procedure
    3. And the headaches and long hours (24/7/365) that go with running a self-employed business.
     
  16. major56

    major56 Active Member

    Franchises (IMO, what a deal … for the franchisor /licensor):

    1) Franchisee purchases a job
    2) Initial /upfront investment outlay by franchisee—excess of the "purchase consideration" (e.g., goodwill /blue sky—an amount > fair market value)
    3) Franchisee additionally pays royalties to franchisor for as long as franchisee operates the franchise
    4) Franchisee operates the franchise under strict guidelines (e.g., franchisees are required to share financial information and conform to uniform operating procedures).
    5) Franchisee comes up for franchise renewal every 3-5 years … with franchisor having the definitive vote whether to renew franchisee with franchise or not
    6) Franchisee (person or entity) must have franchisor consent to sell franchise
    7) Franchisor is in essence operating a non-asset /assetless business entity
    8) Franchises are not "true" entrepreneurship:thumbsdown:
     

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