No Frills is a chain of Canadian grocery stores that represent a unique way of thinking about grocery. Established in 1978, No Frills now has over 150 locations and continues to be dedicated to giving customers low prices without any of the advertising, fancy labels, marketing, and other ‘frills’ that lead to raised prices for customers at other grocery stores.
For so many years, No Frills have supported local communities and the names of local owners are included in the store name to show this fact. Walking into a No Frills is expected to feel like walking into a local market, with great service and employees working there that are members of the community. No Frills also uses its own generic No Name brand of food; this both saves you money and gives the stores a homier feel making them less like a mega-corporation supermarket.
Also note that at No Frills you can find everything you could at a normal grocery store, but the prices you’ll get can’t be found at competing stores. You can validate this at any time by going through some No Frills coupons and deals. Even if they could, No Frills has a policy where they’ll match any lower price ever found at another store. On top of the great savings, you are also shopping at a store that cares about your community.
No Frills introduced some highly innovative retailing concepts to Canadian consumers. While most grocery stores carried thousands of items, that first No Frills® featured only 500. And many of the products were themselves no frills, namely no name®. Boasting of their distinctive yellow packaging, bold lettering, and low prices, No Frills has proven to be a big hit with consumers.
No Frills was able to pass on even more savings by leaving products on display in their cardboard shipping cartons, with the sides cut away. Produce, normally washed by hand and carefully arranged, was left in its original box. At a time when consumers were feeling the pinch of high inflation, many were only too happy to give up the frills to save money at the checkout counter.
According to reports, Loblaw’s quickly converted two dozen of its stores to No Frills® outlets. Business boomed, but became increasingly competitive through the 1980s. Then, in 1987, Loblaw’s chose to harness the entrepreneurial spirit of local ownership, changing the stores into franchise operations.
Presently, those owners proudly put their names out front, from Nadim’s No Frills® in Oshawa, Ontario, to Kris’ No Frills® in Peace River, Alberta, to Kevin’s No Frills® in Paradise, Newfoundland. Indeed, a lot has changed over three decades. That first prototype store has grown into more than 250 franchise locations across Canada.
While the first stores had only a few hundred items, today’s No Frills® has thousands to choose from, including fresh produce, meat, the very popular President’s Choice®, as well as no name® line of products. However, even with all these changes, the No Frills® concept has remained the same, focusing on great meat and produce, commitment to community and trusted low prices.
Financial Investment Required to Open No Frills Franchise
- Start up cost: $50,000 CAD
You have to pay your employees and for food that you sell. Also note that the company gives you a recognized name to use as well as well as lend you money if your store is not doing well.
Steps to Open a No Frills Franchise in Canada
No Frills (currently styled NOFRILLS and formerly styled nofrills) is a Canadian chain of deep discount supermarkets, owned by Loblaw Companies Limited, a subsidiary of George Weston Limited. According to data, there are over 200 franchise stores located in nine Canadian provinces. When you’re new in the market and looking to get a franchise business, there are several things that you need to do. Below is brief guide on how to acquire this franchise in Canada.
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Analyze your core skills, interests and capabilities
This is one of the most important steps you are expected to take before making any commitment. Do a thorough inventory of what your transferable skills are, what your primary interests are and what you do not like to do. It is only when you thoroughly understand what you need to bring to the table and what you want the business to do for you personally, that you are in a position to start looking for franchise concepts. In essence, your criteria becomes your filtering mechanism.
Apply to the franchisor
After all necessary personal research, now it’s time to visit No Frills website and request information about their concept. The company will provide some brochures, website information, and video material. Note that you may need to fill an application form with your experience history, education and preferences.
After that, you will get the company’s FDD (Franchise Disclosure Document), a document every franchise in the United States is mandated by to provide. You will get more information on the history of the company, the training and marketing programs, and what costs, royalties, and fees you will be required to pay. After your application is approved, you will need to sign the franchise agreement. Check it out with a lawyer to make sure all the terms and conditions are clear.
Along with the franchisee fee ($15,000), you will also need money for construction, kitchen equipment, and insurance. You are also expected to pay for rent during the construction phase so it’s advisable to budget for that expense as well.
Call around to get some quotes and budget another $300 – $700K. No Frills might offer to fund your franchise, or they might leverage their well developed relationships with banks to extend a loan so that you can buy the franchise. The Small Business Administration and bank institutions can also guarantee loans.
Consult a Franchise Lawyer
A franchise contract is a very specific form of business agreement; it is very different from the typical business agreement. In addition, many jurisdictions in Canada have franchise legislation in place so it becomes critical that you have a franchise lawyer review your franchise agreement (One whose primary focus is handling franchising affairs).
The lawyer will review your contractual agreements to ensure compliance with legislation, and most importantly, explain your rights and obligations as well as the franchisor’s rights and obligations – it is imperative that you are comfortable with this prior to signing your franchise agreement.
No Frills sells meats, food, fruits and vegetables, drinks. There are over 200 in 9 provinces of Canada and No Frills is located in Alberta, B.C., New Brunswick, Newfoundland and Labrador, Nova Scotia and Ontario. Its frozen food sections, excluded from the original stores due to the cost of refrigeration, are now standard. Other features remain unchanged, though, with No Frills customers still required to pack their own groceries and bring their own shopping bags or pay 5 cents per bag.