3 ms·

if it were easy there wouldn't be an article written about it

sidlls 6y ago
"as easy" shouldn't be taken to mean "objectively, absolutely easy." It's relative. And relative to today, I agree. Where, today, can one be given a franchise after (paid) training and save close to $200k (net of profits, taxes, etc.) over a one year period? Even given the same work habits and use of family (child) labor? There is either an element of (relative) less difficulty and or extraordinary luck at play here.
- kjksf 6y ago
  He wasn't given anything. Winchell was (and is) a business, not a charity. The article lacks details but Ockham's Razor dictates that the most plausible was that Winchell and he entered into a business arrangement where he was running their donut shop for a share of profits. They provided the capital, he did all the work and Winchell got a cut of his profits. He then saved aggressively and started buying more donut shops. Notice that Winchell had similar arrangement with many other people and presumably they didn't become millionaires. As to luck: he trained 100+ other immigrants to successfully operate a donut shop so if an immigrant that most likely doesn't even speak English can profitably operate a donut shop, maybe luck is not such a big factor. As for why he became a millionaire and not others - I don't see any luck there either. He followed the same formula a hundred times: open one more donut shop. He was just more ambitious, worked harder, saved more aggressively and took a bit more risk.
  - sumedh 6y ago
    > He followed the same formula a hundred times: Its the same formula used by particular Indian community who came to the US in 70s, 80's and now own most of the motels in US. Put your family to work, save lots of money, use those savings to buy another motel, bring immigrants from your community, put them to work, rinse and repeat and that is how a small Indian community are the Motel Kings in the US. https://www.nationalgeographic.com/culture/2018/09/south-asia-america-motels-immigration/ https://www.nationalgeographic.com/culture/2018/09/south-asi...
maxerickson 6y ago
One implied question is whether the franchise opportunity even exists today.
- ghufran_syed 6y ago
  Winchells bought out their franchisees in 1971, at least 4 years before he did the training course and started running a winchells store. So it was a job, not a franchise https://www.encyclopedia.com/books/politics-and-business-magazines/winchells-donut-houses-operating-company-lp https://www.encyclopedia.com/books/politics-and-business-mag...

"as easy" shouldn't be taken to mean "objectively, absolutely easy." It's relative. And relative to today, I agree. Where, today, can one be given a franchise after (paid) training and save close to $200k (net of profits, taxes, etc.) over a one year period? Even given the same work habits and use of family (child) labor? There is either an element of (relative) less difficulty and or extraordinary luck at play here.

kjksf 6y ago
He wasn't given anything. Winchell was (and is) a business, not a charity. The article lacks details but Ockham's Razor dictates that the most plausible was that Winchell and he entered into a business arrangement where he was running their donut shop for a share of profits. They provided the capital, he did all the work and Winchell got a cut of his profits. He then saved aggressively and started buying more donut shops. Notice that Winchell had similar arrangement with many other people and presumably they didn't become millionaires. As to luck: he trained 100+ other immigrants to successfully operate a donut shop so if an immigrant that most likely doesn't even speak English can profitably operate a donut shop, maybe luck is not such a big factor. As for why he became a millionaire and not others - I don't see any luck there either. He followed the same formula a hundred times: open one more donut shop. He was just more ambitious, worked harder, saved more aggressively and took a bit more risk.
- sumedh 6y ago
  > He followed the same formula a hundred times: Its the same formula used by particular Indian community who came to the US in 70s, 80's and now own most of the motels in US. Put your family to work, save lots of money, use those savings to buy another motel, bring immigrants from your community, put them to work, rinse and repeat and that is how a small Indian community are the Motel Kings in the US. https://www.nationalgeographic.com/culture/2018/09/south-asia-america-motels-immigration/ https://www.nationalgeographic.com/culture/2018/09/south-asi...

maxerickson 6y ago

One implied question is whether the franchise opportunity even exists today.

ghufran_syed 6y ago
Winchells bought out their franchisees in 1971, at least 4 years before he did the training course and started running a winchells store. So it was a job, not a franchise https://www.encyclopedia.com/books/politics-and-business-magazines/winchells-donut-houses-operating-company-lp https://www.encyclopedia.com/books/politics-and-business-mag...