How Much Does Walmart Franchise Cost
If you haven’t heard about Walmart, you’re most probably living under a rock since birth. The giant company has expanded in the US and around the globe by offering products at a lower price at a wider selection. Every American who wanted to buy groceries at a fair price would have purchased goods from one of its retail stores at least once.
With its massive popularity, you might have thought to have a franchise related to the well-known name. That said, how much does a Walmart franchise cost?
Average Walmart Franchise Cost
Actually, there is no Walmart franchise cost. The company, in fact, is a corporation. You could only call it as your “own” if you’re one of the shareholders.
That said, you could still use the prepared Walmart franchise startup fee. That is, by putting up your own business inside its many stores.
You could take advantage of Walmart’s popularity by putting up your business in front of its operating stores. To do so, you should transact with the company’s leasing professionals.
The initial process of acquiring a space in front or inside Walmart include:
- Review the Landlord and Tenant Handbook. You should first ensure that your business complies with general operating requirements.
- Review available spaces. Walmart Realty has a list of available leasing space you could choose from. Most rates are negotiable.
- Fill out the new tenant business summary form. You should supply the company your franchise details. You would then send your accomplished form to [email protected].
If you have a vending machine, Walmart also offers a space for that. The company’s Automated Consumer Services group would make sure you’d acquire a vestibule location that has high traffic.
Franchise Inside Walmart
You won’t be paying a Walmart franchise startup fee, but you could use the retailer to your advantage. The benefits of setting up a business inside the many stores of the company include:
- A captured market
- Less competition
- High-traffic location
Note that Walmart would help you find a strategic location under its roof. This assistance would make the buyers who swarm in the retailer’s stores notice your business, and hopefully, come into your establishment.
Costs of Setting Up a Franchise Inside Walmart
You don’t need to prepare a Walmart franchise startup fee. But you would have to invest in some money to be able to establish a business inside the company’s stores.
For instance, Seva franchise owner Irfan Ali invested in around $100,000 for opening his business inside Walmart. The cost includes:
- Franchise fee: $25,000
- Walmart entrance fee: $10,000
- Build-out and opening expenses: $65,000
According to Ali, getting people to patronize their service was a bit hard. After all, threading at that time is not a familiar niche. However, it helped that they have a branch in Walmart. Their location made it easy for customers to enter their store and see what services they offer.
It was also an advantage to Ali as Seva already had a strong relationship with the retailer company.
Learning from Ali’s experience, you should research first about the franchise you want to invest in. If Walmart has a connection with your target business, the smoother the whole procedure would be.
Another franchise you could consider is Cellairis. The business has an established relationship with Walmart. Its stores offer repair services for mobile devices and electronics.
The cost of buying a Cellairis franchise include:
- Initial franchise fee for a kiosk: $20,000
- Initial franchise fee for an inline or full store experience: $25,000
- Initial royalty fee for a kiosk and inline: $800 per month or 3% of gross sales
- Initial royalty fee for a full store experience: 4% of gross sales
For the company to consider you for a franchise, you must have a minimum of $50,000 in liquid assets. Also, you should have the ability to acquire financing that costs at least $80,000.
The total investment, on the other hand, runs about $36,800 to more than $370,000. The exact cost depends on what type of business you’d choose. Typically, kiosks are a lot affordable than setting up a full store.
Franchise For Sale
Aside from setting up a franchise in Walmart, you could also buy sub shops stationed inside the retail store.
One of the platforms to find franchises for sale is BizBen.com. For instance, the website has a list of sub shops in San Diego sold for prices ranging from $34,000 to $375,000. The initial list includes:
- YogurtLand: $375,000
- Asian Fusion Quick Service Restaurant: $34,000
- Upscale Coastal Juice Bar Café: $375,000
- Frozen Yogurt and Sandwich Shop: $59,000
Businesses also continue to partner with the retail company. For instance, Philly Pretzel Factory had set up shop in Walmart locations in Virginia in 2014. Five of the retail stores is located in the Richmond area.
The company has been franchising since 2005 and has around 110 units located in Walmart stores.
Another franchise that recently partnered with Walmart is Marco’s Pizza. The store is located at the Urbana Walmart Supercenter and has been operating since September 2016.
General Franchise Costs
Already looking for a franchise you could set up inside Walmart? If you’re pushing through, know the average costs so you could prepare your finances early on.
Majority of franchises range from $50,000 or $75,000 to around $200,000. Note that the said costs are for startup only. The lowest price, on the other hand, is $10,000 while the most expensive could reach up to $5 million. The specific types of business and their prices include:
- Home-based or mobile concept: $10,000 or less
- Full-service restaurants: $750,000 to $3 million
- Fast food restaurants: $250,000 to $1 million
- Auto repair and maintenance facilities: $200,000 to $300,000
- Hotels: More than $5 million
Aside from the startup costs, you would also pay the franchise fee. The payment would allow you to use the franchisor’s brand and receive assistance on setting up the business.
Franchise fees usually run about $20,000 to $30,000, but more established brands could charge as high as $100,000.
Additionally, you should comply with the minimum financial requirements of the franchise you wish to venture into. Usually, a company requires a specific amount of liquid assets and net worth before it can consider your application.
If you’re undecided on what franchise inside Walmart to venture into, try strolling the stores. Good luck!