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Is Shoprite a Franchise Business?

No. Shoprite is not a franchise company! ShopRite is a wonderful place to go if you intend to get good deals, a fair bit of discounts and coupons, as well as a good product collection. ShopRite is a retail cooperative, and nowhere near a franchise, with more than 50 owned stores and 296 partnered stores.

Even though these businesses are individually operated by Wakefern Food Corporation members, co-op members elect their own board of directors who are tasked with managing the business as a whole, nearly identical to a franchise.

Wakefern Food Company owns ShopRite and continues to operate 28 of the stores today, with the remainder operated and controlled by individual or small organizations of Wakefern co-op members. The typical Wakefern member owns and runs six stores.

Wakefern, established in 1946 in New Jersey, is well renowned as the seventh-largest cooperative gathering of supermarket retailers. It is centrally located in Keasbey, New Jersey, and serves as the state’s most significant private employer.

Franchises and cooperatives are nearly identical in numerous ways. In franchising, a commercial entity that possesses a robust framework and a clear mission design a methodology that licensees can recreate.

In cooperatives, individual entrepreneurs band together with the intention to keep costs down and, in the same vein, create a business entity to carry out their business dealings, making a decision collectively on the specifics of their fundamental idea.

Several well-known brands carry out business as co-ops, even though they are frequently confused with classic franchises. Ace Hardware and True Value, for instance, are co-ops; participants choose which items to distribute in their individually operated retail locations, even though procedures and guidelines are set by an elected board of directors.

Difference Between a Franchise and a Cooperative

If you already have an industrious mentality and want to establish your own business, you might well be contemplating a range of possibilities. Many would-be entrepreneurs choose a franchise due to the demonstrated success and pre-existing operating model.

It is up to you to determine which company approach is best for you. The sections that follow go into greater detail about some of the main distinctions between co-ops and franchises.

  1. Fees

This is without doubt one of the primary differences. A good number of franchises will most likely cost you a franchise fee, which can span from $15,000 to $40,000.

There is really no franchise fee with co-ops. With a franchise, you might be expected to pay a promotional fee that can vary from 1% to 3% of your annual earnings, as well as a royalty payment that could vary from 4% to 7% of your gross earnings.

There are no such fees in a co-op business model. All you ever need to pay is a one-time membership fee as well as yearly membership that constitutes a very tiny percentage of what you would spend with a franchise. This enables you to retain more from the profits for which you have worked extremely hard.

  1. Supplies

A good number of franchise agreements stipulate that you must procure all your goods and items from the franchise. Even if you’re able to discover the very same items better priced elsewhere, you are still expected to purchase them from the brand.

This goes against the successful entrepreneur’s orientation of keeping expenses as low as possible. With a co-op business model, you could indeed take advantage of the economies of scale that emerge from the group’s purchasing power to negotiate competitive rates for your items.

  1. Freedom

For several business owners, the ability to manage their enterprise the way they want is more important than any other advantage of business ownership. You are restricted on how to grow your business under a franchise structure. You will find it difficult to launch a new item that you believe your clients will appreciate.

You cannot modify your company’s signage or color combination. You are even expected to participate in advertisements that your clients are unlikely to be interested in. Meanwhile, a co-op will allow you to operate your enterprise in the manner you prefer.

Specific benchmarks will still be expected to be met, however, you can personalize your enterprise to your neighborhood market.


Shoprite is thus not a franchise, but rather a retailer-owned cooperative of supermarkets in the United States, with more than 50 owned stores, some other 296 affiliated stores, and other grocery stores. The majority of Shoprite locations are independently owned.

The majority of Wakefern co-op participants own multiple stores, but some only have one. Participants operate their retail locations, however, the cooperative establish certain policies and guidelines they are required to follow.