Do you want to start a retail store business by buying Family Dollar franchise? If YES, here is how much it cost to open a Family Dollar franchise.
Family Dollar is a United States based variety store chain. With more than 8,000 locations in all states except Alaska, Hawaii, Oregon and Washington, Family Dollar is renowned as the second biggest retailer of its type in the United States.
The business was established in the year 1958 by Leon Levine and it all started as a small retail store that offered very low prices on items. They are able to achieve this with low overhead costs and minimal operating expenses. Since then, the company has grown from that small store to a multibillion dollar business that is now managed by the heir of the founder.
How Much It Cost to Open a Family Dollar Franchise
- Financial Requirements
You should note that Family Dollar does not have a Franchise cost, since it’s not a franchise. But if you decide to buy into the company’s store network, you will definitely need to invest some amount of cash to acquire fixtures and merchandise for your store. You will also be the one to get the building to locate your store and must also be ready to follow the guidelines set by the Family Dollar Network.
The initial investment required to establish a Family Dollar Store is within the range of $10,000 to about $25,000. There is little or no information on how to open a Family Dollar Store Network. But, if you are interested in leveraging the company’s store network, you can forward your application to the company’s website. This will be reviewed and feedback will be given after some few days.
Once your application is considered, the company will schedule an associate to call you and give you more information about the business. The associate will make more inquests into your financial capacity to open a Family Dollar Store. Once he finds you eligible, you can then go ahead to start the process of opening your store.
Steps on How to Get and Open a Family Dollar Franchise
Like it was started above, Family Dollar is not a franchise, but you will require a certain amount of money for merchandise and fixtures if you’re looking to start a Family Dollar Store. You will be responsible for renting the building and following the guidelines associated with the Dollar Store. Below are few steps to acquiring and managing a Family Dollar Store;
- Fill the application at the website. You will need to include your name, address, city and state. You will need a phone number and email address. Then choose the amount of capital you will have to invest. The range is less than $10,000 to more than $250,000. Then you will be asked what your investment time frame is and the state where you wish to open a Dollar Store.
- Wait for the email that confirms that your application was received and being reviewed. This email will tell you if you will be approved for the location. It will also go into more specifics regarding the financing. You will be asked to schedule a time for an associate to call you and talk more.
- Ensure to have your financial papers ready when you have your phone conversation. This is very important especially at that point. This is when you will find out if you have enough money to open the store or if you will need financing. If you need help with financing, you can apply for an SBA pre qualified loan through the website even before the call if you have no financing.
- Note that approval is expected quick once you meet the requirements. You should already have a building with all the hookups. After you are approved, the organization will start sending fixtures and merchandise to your building.
- You will then be mandated to attend a two-day workshop at the Dollar Store headquarters before the opening of your store. Here you will learn the mission statement and how to make money selling the merchandise.
The amount of revenue a Family Dollar Store will generate cannot be ascertained as there are no franchisees with the company and less information since after the takeover by Dollar Tree. Aside from the intensive training that Family Dollar offers to its staff members, you will be trained as well if you buy into their Family Dollar Store Network.
Every orientation of the culture and value of the company and how you can pass this on to your customers giving them the best shopping experience will be passed on to you. You will also be in charge of raising the necessary funds required to start your Family Dollar Store as the company does not offer any form of financing whether directly or indirectly.
What You Must Know About Family Dollar Store Franchise
By the year 2006, the Family Dollar Company has had about 6,700 stores spread over 44 states in the country. As at today, it is still considered as one of the fastest growing retail businesses in the united states. Family Dollar majorly deals on food stuffs, assorted household goods and clothing. At their stores, you will hardly see an item that costs more than $10.
Over 90% of item offered on sale are lesser than that amount. This is just the main reason why the stores have been a shopper’s favorite. It also bears a close resemblance to supermarkets and the self service options are parts of so many attractive features of the company.
But just like every other business, Family Dollar has its low side. Its low side is that despite the company’s growth and success in the industry, Family Dollar does not have an online store where customers can order items, so interested buyers will have to come in physically into their stores to have that wonderful shopping experience.
Although this low side has not affected the company’s reputation in any way as it has grown to become one of the notable retail stores across the United States. It is quite unfortunate that the company does not sell franchise opportunities. All their stores are company owned.
The reason given for this is that the management of the company wants their customers to have the best shopping experience in their stores. But there is an alternative for interested entrepreneurs. This alternative that the company presents is the Family Dollar Network. The company surely welcomes business people that want to have the Family Dollar Experience.