Franchise construction and remodel

When you are asking for competitive bids from construction companies, the range of quotes is mindboggling. For a food franchise I have seen bids of $165,000 to $100,000, and I ask myself how and why the spread can be so wide. Think of the loan load factor and payments you will have to make over 7-10 years and you will get a headache.

The simple answer lies in the organisational structure of the Construction company. The more supervisors they have on the job , the more you pay. The more they build big budget projects the less they are able to deal with the smaller guys and translate efficiencies because they are stuck on one methodology. In the case of food franchises, it should not cost more to build two restrooms for Pizza Hut than it costs for Extreme Pita. While I agree that four restrooms should cost more than two, that is not what I am discussing. And contractors are masters at telling you how difficult everything is, and what an effort it is to deal with inspectors and corporate people. Sometimes, yes, most times I say Baloney   

So you want to know why you must do a remodel every 7-10 years or so. And the questions sound something like this: should I gut the store and start fresh with new decor and a new design? should I do just a cosmetic remodel, change the wallpaper, and make it look fresher than it was? is the expense worth the effort? how much more in sales will it bring? what increase in sales do I need to recover my remodel expenses?  will it increase the value of my store? what happens if I do not do the remodel? do these questions play in your head all day?

Do you get any answers from anyone knowledgeable, or do you just go along with blind faith that God will provide?

These are some of the questions I have answered for many clients in the past.

(And I have found a couple of great contractors in the NV, AZ, So Cal region who are reasonable, efficient and knowledgeable. If you need a reliable builder, one such licensed contractor I can recommend now is Mahendra Patel.)

Contact me for more details.

fayaz@mrfranchiseman.com, 949-253-4610