Do you want to start a convenience store business by buying Dollar General franchise? If YES, here is how much it cost to open a Dollar General franchise.
The Dollar General Company run convenient stores to deliver products that are of low prices to their customers every day and they have successfully done this for so many years.
How Much It Cost to Open a Dollar General Franchise
A Dollar General Franchise refers to a network of stores where all merchandise is sold at highly reduced prices. Thus, most dollar general franchise opportunities involve a closeout of both branded and generic merchandise in the same store.
To get a Dollar Store Franchise, you have to pay an initial amount called dollar tree franchise cost or franchise fee. On the average, a dollar store franchise would require a minimum cash outlay of $50,000 with a total investment ranging from $65,900-$463,000, which could be higher depending on the products you intend to sell on the franchise.
This price range will cover everything you need to have set up the Dollar General franchise store.
Steps on How to Open a Dollar General Franchise
Dollar General store locations are company-owned, so you may not be able to get a franchise. But that does not say that you cannot lease a store. If you want to do so, you can visit their website and have a chat with them.
The Dollar General Franchise stores have different pricing for their different store types. You can find below the types of store they run and the specific Dollar General Franchise fee.
a. Liberty Dollar Store: This store under the umbrella of the Dollar General Stores are the easiest and cheapest to run in terms of pricing and maintenance. They can run with minimal supervision from the parent company. With a minimum of $25,000 you can set up a Liberty Dollar Store. And this could be more depending on your preference for stacking and also the location that you intend to set this up
b. Dollar Discount Store Of America: To set up a Dollar Discount Store of America, a franchisee will require any amount ranging from $75,000 to $150,000. You will also be expected to own a liquidity capital of $20,000 or even more.
c. Just-A-Buck: if you have decided to go for the Just-A-Buck, you will require an initial investment of about $150,000 to $250,000. The initial Dollar General Franchise fee for this store is not included, but be aware that this store may cost you nothing less than $50,000.
What You Must Know About Dollar General Franchise
Dollar General Corporation is an American chain of variety stores that is headquartered in Goodlettsville, Tennessee. The company began in 1939 as a family-owned business called J.L. Turner and Son in Scottsville, Kentucky. It is owned by James Luther Turner and his son, Cal Turner.
James Turner’s father died in an accident in 1902 when James was only 11. James had to quit school and never completed his education so he could work in the family farm and help provide for his mother and siblings. After two unsuccessful attempts at retailing, James became a traveling dry goods salesman for a Nashville wholesale grocer.
James left the sales job after 10 years and settled his family in Scottsville, Kentucky. During the Great Depression, he began buying and liquidating bankrupt general stores. James’ only child Cal Turner accompanied his father to these closeouts at a young age, gaining valuable business knowledge and skills.
In October 1939, James and Cal opened J.L. Turner and Son with an initial investment of $5,000 each. The switch to retailing resulted in annual sales above $2 million by the early 1950s. By the mid-1950s Turner had 35 department stores in Kentucky and Tennessee.
In 1955 Cal Turner developed his idea of a retail store selling goods for a dollar, based on the Dollar Days promotions held at other department stores. He converted Turner’s Department Store in Springfield, Kentucky into the first Dollar General Store. In 1964 J.L. Turner died leaving his son Cal Turner to succeed him. In 1955, the name changed to Dollar General Corporation and in 1968 the company went public on the New York Stock Exchange.
As of July 2018, Dollar General operated 15,000 stores in the continental united states. Fortune 500 recognized Dollar General in 1999 and in 2018, the company reached number 123. Dollar General has grown to become one of the most profitable stores in the rural United States with revenue reaching around $21 billion, judging from 2017.
There are over 9,300 dollar general stores in 35 states to date. The company reels in an average of $13.04 billion in sales in its around 7,200 square foot stores, with 9 distribution centers and over 85,900 employees. There are about 10,000 American products available at every Dollar General Store.