need advice

By the way this is all the asset I have. I am renting a small 2 bed, 1 bath apartment in Los angeles California. I drive a beat-up car and it took me a long time(about 15 years, since 1991) to save up this much amount. It's in my checking account and is legimately earned. I worked two jobs for about

15 years as liquor store boxboy/cashier and newspaper delivery person waking up at 4 am everyday. Currently I just work as a liquor store boxboy/cashier(about 40 hours a week). As soon as I recently received an associates degree(community college degree), I quit my newspaper delivery position. I am 35 years old and live with a wife and 5 year old son. Thank you.

Dave

snipped-for-privacy@earthl> Hi. I need advice. I have about $110,000 cash. I want to make it

Dave,

$36,000 per year on a $110,000 investment sounds too good to be true. Please be aware that there is a substantial difference between profit and cash flow. A business can be profitable, but actually require you to contribute cash each month, at least until it is fully paid off.

Also be sure to talk to other franchisees and listen carefully to what they have to say. If there is a franchisee association talk to the local officers and, as long as they aren't a cheer leading squad, get their suggestions on what to do and their comments on what you can realistically expect.

HTH Jerry

Hi Dave,

Do your homework very thoroughly. Google "franchise pitfalls' and also "subway franchise". Talk to a lot of subways franchisees. Ask the right questions, especially of the ones who seem to be not doing so well.

A franchise can be very profitable or a hole in the ground for your cash. Not sure I would advise running it as an absentee owner, that could just add to the cost and invite other problems.

Cheers, Rusty

If you are not going to be present, you had better initiate some incentives and controls for cash receipts. However, before you even buy a franchise, you should do a lot of research. Drop in on several Subways and speak with the owners; don't speak to them at a seminar pitch as they will always tell you what you want to hear. When I was younger, I made the mistake of buying vending machines because of a seminar pitch.

Dave,

I work for an international franchisor, and I strongly suggest you operate on the side of extreme conservatism. If you have been doing your research, you will have noticed that nearly 75% of franchises fail. I know this doesn't help, but you have to be realistic in setting your financial goals. As far as not being a day to day operator in your business -- should you decide to buy one -- you are risking a great deal in putting faith your profits will sore into someone who has no vested interest in your business. I have been told stories upon stories of how "investors" gave their operations to a manager they thought they could trust only to find he/she ran the business to the ground and/or embezzled a great sum from the business. If you do decide to buy a franchise opportunity I strongly urge you to make your presence felt on a daily basis. This will aid in your success. Remember this 25% of your employees wouldn't think of stealing from you, 25% will steal from you in a heartbeat, and 50% are riding the fence.

Good luck! Janice