Dollar stores has been one of the most leading retail businesses that offers a variety of quality products at a much cheaper cost for as low as $1.00. No doubt dollar tree has been a hit since people are now looking for ways on how they can actually save money on all their purchases.
If you have ever thought of starting your own dollar franchise and how much a dollar tree franchise cost, this article could be helpful to get you started in your franchise business.
Average Cost of a Dollar Tree Franchise
Dollar general franchise cost falls within the range of $25,000 to $300,000. This cost will cover everything that you would need to start up your business including the initial lease, fixtures, signs, office equipment and inventory materials. This also includes the initial dollar general franchise fee for using the company’s name, which averages from $20,000 to $30,000.
A dollar tree store averages around 8,000 to 12,000 square feet. A lot of people have been asking how much does a dollar tree franchise cost. Unfortunately, dollar tree does not allow any franchise. However, since dollar tree is continuing to expand it is possible that they may begin to franchise stores, but until you can obtain a dollar tree franchise, owning a dollar general franchise could be an even better route to go.
Package Inclusion for a Franchise
Determining exactly the amount of money that you should be investing in your franchise business is a very important question before you start your business.
Aside from your start-up cost, you also have to include royalty fees on your dollar general franchise cost. The most dollar store franchise will collect a percentage of your gross revenue. These fees are called “royalty”. Royalty fees are payments for using the brand name including advertising and some other support from the main store or mother-company.
The location cost and the area is a significant part of the total cost of your franchise. Your franchise cost will also depend on how small or big the area where you would want to set up your dollar store. The average area would be 1,000 square feet and would cost you at around $41,000 to $50,000. However, you can go as far as 10,000 square feet or higher and this might cost around $250,000 to 350,000.
The most important part would be how to let people know that your business exists. You might need to print out some flyers and make sure that consumers notice your business.
Make sure that you check the package inclusion for your franchise. Some dollar franchise package with lower franchise cost does not include all the materials that you might need to start your operation such as the rent deposit, utility bills for the first two months, store fixtures, display counters, cash registries and licensing fees for your business.
Franchise Cost Comparison
• Buckstore offers a start-up package of $49,900 to $314,900 for a “Dollar Only” store model and $54,900 to $369,000 for a “Dollar Plus” store model. The package prices would include all merchandise, fixtures and equipment, complete surveillance system, store opening accessories, office supplies, complete build out store assembly and on-site training, professional store sound system and inventory materials.
• Liberty Dollar requires about $25,000 to $275,000 for franchise. Prices depend on the square footage of the target store. The price already includes the furniture, fixtures, inventory and training together with access to the company’s buying network.
• Dollar Discount Stores of America offers a total start-up investment of around $73,000 up to $146,000. However, owners should have at least $20,000 liquid capital including a good credit and a collateral.
• Just-A-Buck start-up franchise capital is at $153,000 to $286,318 with a franchise fee of $25,000 and a liquid capital of $100,000. This already includes everything needed to start the business including the financing, training, and support that will be needed to start.
• Family Dollar franchise costs only at $9,995 with a franchise fee of $9,995 and a liquid capital of $9,995. The capital also includes everything needed to start the business including the financing, training, and support that will be needed to start.
There are more companies that offer dollar store franchising opportunities. Patience and expertise are needed when choosing your franchise to make sure that your money is invested well and smart.
Opening Your Dollar Store Franchise
If you’re looking forward to starting your Dollar Store Franchise soon, there are a lot of things that you would need to consider aside from the general franchise cost.
You might want to consider consulting a financial advisor that can help you build a picture of what you can truly afford – not only in the franchise price cost but also including the actual business set-up.
Get Some Help
Obviously, not everyone who wants to start a business automatically has hundreds of dollars to start with.
If you want to start your dollar store franchise, but does not have the actual amount of capital to start your franchise, you might want to consider getting help from different financing options. Aside from securing a loan through a local bank, there are also different lending corporations that specialize in franchise financing, or maybe you can try the U.S Small Business Administration.
Almost all dollar store franchise will be able to extend a hand and help you through all financing options and can even recommend what’s best for you. However, for starters, you will still need to come up with cash to start your business which usually ranges around $20,000 to $50,000.
Start your Business
There are thousands of franchises all over the globe looking for entrepreneurs to expand in your area. Dollar store franchise is definitely a good catch considering the market today. The best thing is that dollar general franchise cost is cheaper compared to all other franchise there is in the market. You just have to make sure that you’re prepared for your next big step and that you’re in it to win it.