How Much Does Dollar General Franchise Cost
Even the richest and wealthiest people like saving money for their future financial freedom, this is the reason why dollar general franchise shops have increased all over and do not seem to make any losses, In fact, they make sales of huge amounts even during seasons when the prices of everything seems to be going up. The only question people ask themselves is how much does a dollar general franchise cost?
Is the term dollar general franchise new to you? Well let me try to explain what they are in the simplest way possible, these are simply general chain or network of stores consisting all sorts of merchandise and varieties sold at the cheapest prices around. Now you may have heard of a dollar tree franchise or shop or even seen one yeah? There is no much of a difference between these two except that both Dollar tree franchise cost and dollar general franchise cost defer.
This is probably where the heartbeat of Erma Bombeck quote that “The odds of going to the store for a loaf of bread and coming out with only a loaf of bread are three billion to one” makes so much sense. You realize that this store is offering quality and at the same time. Same case with the dollar tree franchise. This makes them so much successful than any other general stores out there.
Insane pricing of their product is the key point here, they barely give any discounts but who needs one when they have bargaining power and opportunity? In most dollar tree chains, you will find out that they exchange durable old stock of other stores for some other ones they are offering or for some few bucks and resell them at very lower prices. Yes, they are second hands but that doesn’t mean that their quality and services are mediocre.
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Average Cost of Dollar General Franchise
An initial cost will range from around $20000 to $350000 or more depending on your product choice of selling. A dollar tree franchise cost will be a little bit higher than this because they have an advantage of selling second hand products cheaply but of high prices making their stacking a bit more costly compared to dollar general franchises.
The above-quoted price covers close to everything that one needs to have to own their dollar general franchise store running. Generally, a dollar general franchise start-up price will not be anything below $25k but can be as much higher as the owner what’s it to be. The following is covered by the estimated price:
- Initial leasing of the premises.
- Inventory prices.
- Office equipment.
- Grant opening advertisement.
- Fixtures and signs
- Initial franchise fees (cost of using the company’s name)
Pricing In Terms Of Store type
Just like any other type of business plan, dollar general franchise stores are differently set and run. Below are some of the most known types and their estimated costs:
Liberty Dollar Store: They are probably the easiest to get and run in terms of prices and maintenance, they have an average stacking and can be run easily with a minimum supervision recurred. With $25000 you are good to go, this can go as higher as you would want it to. Prices of between $25k-150k set a good example of its nature. The most determinant of this price is the square footage ground of this store. This price will cover everything including freights, puncturing, fixture, and access to the company’s buying network as well as any training needed.
Dollar Discount Store of America: This requires a startup amount ranging from $75k-150. It is not the cheapest around which is justifiable to their products and their platform. For one to own a dollar discount store, a liquidity capital of $20k or more a requirement as well as collaterals and good credit.
Just-A-buck: To start this store, an initial investment of $150k-250k is required, this is not inclusive of initial franchise fee which will cost not less than $50k. In many cases, they will as well demand for a not less than 10 years franchise commitment another expensive store to run and manage. Dollar general franchise startup price should not be likely taken, its costly and huge compared to other businesses in the same category.
Startup cost is not the only headache to starting a dollar general franchise store, you will as well be a subject of recurrent fees called royalties. These are payments done to cater for the support you will be getting from the parent company including advertisement fees as well as continued use of the brand name. Your store’s gross revenue will mostly be the key determinant of how much royalties you will be paying either weekly, monthly or annually.
A good example is a just-a-buck type of store, their royalty rates are annually calculated and 4 percent of your annually gross revenue is expected and other 2 percent to cater for the advertising costs.
Obviously, this is a real good business if you have an interest in it, with a good location that has less completion or no completion but does not have enough money to finance its startup costs, you can opt to get financing elsewhere.
Local bank: This should be the first financing institution you should go to, they will hardly decline your request if it proves to be worth the money. Your proposal should be good enough with all details especially the positive sides of the business.
Lenders: There are lots of lenders in the US and obviously in most places where this business is suitable, there will always be lenders who specialize in franchise financing. Many have good rates and deals. With a successful dollar general franchise store, they will be very comfortably paid up.
Small US business Administrations: They have changed the financing market of many areas, having been able to fund some now huge companies start from the scratch, these can help anyone with a good business proposal.
Tony Hsieh once said that “Chase the vision, not the money; the money will end up following you.” Once you identify a good market, the question of if this dollar general franchise cost will be regained back should not be an issue, this is a tested business that many times has proved to be successful.
If you are interested in getting a package for Dollar general franchise, fill the form at the beginning of the article accurately.