DOLLAR GENERAL Franchise Startup Cost, Profit Margin, Revenue and Locations
Do you know how to buy a dollar general franchise? A Dollar General Franchise refers to a network of stores where all merchandise is sold at highly reduced prices technically called a closeout which is very popular in the United States. Thus, most dollar general franchise opportunities involve a closeout of both branded and generic merchandise in the same store. This is similar to what happens with QuikTrip, Family Dollar, Big Lots, Circle K and 99 Cents Store
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Is dollar general a franchise? Although it has the word “dollar” in the name, a dollar general franchise is not limited to the strict definition of its products being sold at $1.00; some goods are sold at a higher or lower price. However, merchandise are usually sold at fixed prices ranging from half a dollar to about 60 dollars. They usually serve populations not large enough to have a Walmart store
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Dollar general franchise cost – Steps to Open a Dollar General
A general dollar store franchise, sometimes referred to as a “small box” retail or “deep-discount retail” shop started in the 1950s. The concept evolved as a model of the ancient-styled general stores: small stores that had an exhaustive stock created to meet the daily demand of the typical consumer. The unique selling point of this franchise is the affordable dollar general franchise fee.
In such dollar general stores, most goods are sold below a sawbuck, and the major focus are those sold at $1; unbelievably cheap prices. An average store has a lot of products. In comparison to goods sold in their rival brand in the retail industry, Walmart, those sold in dollar general franchises are far cheaper.
Here is what it takes to own a dollar general franchise:
Dollar general franchise opportunity
Another unique feature of a dollar general franchise startups is their modest structural design and accessible siting of stores where rent fees are really affordable. Usually, dollar general franchisees sell variety of common household items, such as detergents, utensils etc. Also, they stock larger items such as interior decoration design items, clothes, etc. Branded products have become a larger percent of most general stores, as an attempt to increase their loyal consumers.
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Food products easily make up a sizeable chunk of general franchises’ products. They are strategic items that the franchisees buy and sell at cheaper prices in comparison to competing brands, with the aim of luring more customers; selling their products cheaply due to the low dollar general store franchise cost.
Dollar general franchise startup cost
So how much does it cost to open a dollar general? From their inception, dollar general franchises cater to customers or families with low financial statuses. A large percentage of their clientele belong to the lower rung of financial ladder. It has been discovered that this social class are very conscious of little differences in products’ prices than wealthier individuals or families.
Also, clients with better financial status who had been affected by financial recession have been lured to patronize a general dollar franchise. As part of improvement of their marketing strategies, dollar stores have significantly improved the hygiene of their facilities and complied with standardized structural designs. This re-branding has led to an effective consistent appeal to customers with better financial status which has significantly increased their market growth, profitability, market share and “big-money” investments.
Increase in the variety of products sold in dollar general franchises has catalyzed a fast-growing retail behaviour where a customer daily purchases necessary items a.k.a. as a fill-in trip. Since dollar general franchises sold a variety of items, such could be done in a single store.
So how much does a dollar general franchise cost?
How much is a Dollar General franchise?
- How much does it cost to open a dollar general store?
- Is dollar general a franchise that is expensive?
- What is the average dollar general franchise price and fee?
The exponential rise of dollar general store franchise opportunities such as Dollar General, Dollar Tree and Family Dollar in the early 21st century have put these stores in competition with rival stores such as Target and Kmart. While their revenues grow astronomically, that of their competitors including their major competing brand, Wal-Mart, is stagnating. The proximity of a dollar general store in most neighbourhood also lure most customers, who get discouraged making a long walk or drive to a
Walmart on the outskirts of the metropolis, city or town and would prefer visiting a nearby dollar general store franchise, which sells majority of the items they need frequently.
Wal-Mart has opened its own chain of small-scale stores strategically located and modeled to rival superstores and large discount department stores such as the Dollar tree and family dollar. It is hoped that these stores would stem the success of dollar general franchises. It is estimated that there are now nearly 800 Neighborhood Markets as the small-scale stores are rightly called and there are still ongoing strategies to open new stores annually.
Buying Dollar General Franchise for Sale
But, wait! There are however some downsides to note if you want know how to open a dollar general store franchise. Most staff work far beyond a 40-hour week some working through unpaid breaks earning close to or below the minimum wage. Most dollar general franchisees have a skeletal staff strength with the possibility of having inadequate or even lacking fringe staff compensatory benefits. A lot of stores stretch the human performance of their staff to unbearable limits which in most cases sadly portend grave risks to their health. This issue must be addressed in your Dollar General Franchise business plan before you kick off.
Finally, employee morale is reported to be dispiriting in most dollar general franchises. All these are allegedly due to the desire to maintain a high-profit margin in the franchise dollar general businesses.
Do you know how much franchising a Dollar General cost? Everyone loves to save money irrespective of their class. This is just an avenue to faster financial freedom. With this in mind, the Dollar General Franchise has been able to dive into the lives of the people through the provision of low cost items across their many stores in the country. Now the questions to ask as an entrepreneur is “how much is a Dollar General Franchise?” and “How much does a Dollar General franchise make?”
In the course of the article, we will be discussing the Dollar General as a company and their franchise and we will also talk about if the Dollar General offer franchises.
DOLLAR GENERAL FRANCHISE INFORMATION
Dollar General is a company that embraces substance and simplicity. According to them, their mission is to serve other people and this will only be achieved by being real and simple. 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. As an entrepreneur, you can ride on their success story and seek to get a Dollar General Franchise
DIFFERENCE BETWEEN THE DOLLAR GENERAL AND THE DOLLAR TREE FRANCHISE
You might have gotten information or even seen a Dollar Tree store, well there are no much differences between this and the Dollar General Store. The only obvious difference could be in their franchise cost. The cost of owning a Dollar General franchise is quite different from that of owning a Dollar Tree franchise.
ITEMS FOUND IN A DOLLAR GENERAL FRANCHISE STORE
There are wide varieties of items that can be found in a Dollar General Franchise store. And they are not limited to the $1 mark. In a Dollar General Store, you can find items as hardware, cleaning products, toys for children, and even large items such as a vacuum cleaner.
Interestingly when you enter into a Dollar General store, you could be enticed with small items such as flashlights, bottle openers, drinks and so on. This gets your attention to the store and when you are deep inside, you tend to see other bigger items of interest to you.
WHAT IS THE COST OF DOLLAR GENERAL FRANCHISE
Getting a Dollar General franchise is not so much of a herculean task at that. The cost of a Dollar General franchise will range between $20000 to $350,000 and that could be higher depending on the choice of products that the franchisee intends to sell in their store.
This price range will surely cover everything that one needs to have set up to own a Dollar General franchise store, but the entire cost will not be anything less than $25,000 which can also be higher as the franchisee wants it to look like.
How much does it cost to build a dollar general store? You will need thousands of Dollars.
WHAT DOES THE DOLLAR GENERAL FRANCHISE COST COVER?
- LEASING: The entire cost of the Dollar General Franchise will cover the initial leasing of the location.
- OFFICE EQUIPMENT: These are very important components of the store and they are also included as part of the cost that will be incurred for the set up of the frnchise store
- MARKETING AND PROMOTIONS: The store won’t pick up with the right marketing and promotional strategies. So this is as well included in the estimation of the total cost
- FIXTURES AND SIGNS: these are the items and products that will be on sale in the store. It is a very vital component of the entire cost
- INITIAL FRANCHISE FEE: The initial Dollar General Franchise fee will also be calculated as part of the cost of setting up the franchise.
THE DOLLAR GENERAL FRANCHISE STORE TYPES AND THEIR PRICING
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
- LIBERTY DOLLAR STORE: These types of stores 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
- 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.
- 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. For your information, the initial Dollar General Franchise fee is not included, and this may cost you nothing less than $50,000.
And in many cases, you will be expected to have a franchise commitment of nothing less than 10 years. This will also be a component of the entire Dollar General Franchise cost. The Dollar General Franchise startup fee should not be considered lightly as it is quite expensive when compared to other franchises in the same category.
FINANCING YOUR FRANCHISE BUSINESS
The Dollar General Franchise is a lucrative business if you have developed interest to run it. If you have got a very good location with less competition, you can break-even in a very short period of time. But in the case whereby you don’t have much finances to kick start your business, you can seek finances from either your local bank, money lenders as well Small US Business Administrations.
A lot of people are now more concerned about saving money by spending less on shopping, an that’s just the whole concept behind the Dollar General franchise and this could be the reason why their profits continue to increase by the year. In fact, the company makes so much revenue in seasons where prices of items even seem to be on the increase. The question a lot of people ask is how much is a Dollar General Franchise
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WHERE TO START
In an economy where everything seems to be in disarray, there are just a few opportunities that can be found on good businesses and even fewer that are being run well, especially when it comes to the outflow of a consumer’s dollar. The Dollar General Stores are just one of the few stores where shoppers feel so/ much confident to expend their funds no matter how much they feel about saving.
IS DOLLAR GENERAL A FRANCHISE?
As at the time this report is being filed, Dollar General has not began to sell franchise opportunities. Dollar General is not a franchise as most of their numerous stores spread across the United States are company owned.
THE DOLLAR GENERAL STORES OPTION
What Dollar General presents as an alternative to the franchise is the Store opening option. If the company considers your store fit enough to be used a part of the company’s network, then you will be given the license to operate a Dollar General Store, but not a Dollar General franchise.
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These are the different types of Dollar General Stores you can buy into.
- Just-A-buck: To establish this type of store under the Dollar General Network, you will be required to have an initial investment up to the tune of $200,000. Opening this type of store will require a signed agreement deal of about 10 years.
- Dollar Discount Store; This is lower prices and will only require an initial investment to the tune of $150,000. Although it is not the cheapest store under the network, but it is quite fairer compared to the Just A Buck store.
- Liberty Dollar stores: This is the cheapest that the Dollar General Network has to offer and it is quite easy to launch and operate. With just a minimum capital of about $25,000, one can open a Liberty Dollar Store.
HOW MUCH DOES A DOLLAR GENERAL FRANCHISE COST?
Dollar General Franchise Cost may not be ascertained as at the time of writing this report. However, to establish a Dollar General Store, investments will be needed in the range of $25,000 to $300,000 depending on the store option that is chosen.
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This initial cost will need to cover for everything that your store will need to stand. So before going into the business, you have to evaluate your financial standing as you will need to have enough funds to cover for the following items.
- The License fee
- Cost of equipment
- Rent or lease
- Advertisements and publicity
- Launching of the store
- And other miscellaneous expenses
DOLLAR GENERAL FRANCHISE FEE
The Dollar General Franchise fee is not feasible since the company does not sell franchise opportunities.
FINANCING YOUR DOLLAR GENERAL STORE
If you are chosen by the company to open a Dollar General Store, then you might be needing financing to establish your store. You can however get funding from these different sources:
- Your Local Bank: When you consider getting funds from an external party, this should be your first option as you can get the best lending rates from majority of the banks around. As long as you have a sound proposal that contains all the details about the business that you are buying into.
- Money Lenders: There are money lenders everywhere across the country that will be willing to put their money into your business. Although you need to be careful about this as some of their rates might not be really favourable.
- Family and Friends: Once you have a good business plan, you can actually turn to family and friends to assist you with funding to grow your business.
HOW MUCH DOES A DOLLAR GENERAL FRANCHISE MAKE
Since Dollar General does not sell franchise, we might not be able to attach any financial value to what a Dollar General Franchise owner will make. However if you own a Dollar General store, your average income will depend on the effort you input into the business and the location of your store coupled with the level of promotions and publicity.
TRAINING AND SUPPORT
As a new store owner with Dollar General, you will be given maximum training to assist you in setting up your own store. The company will expose you to their concept and ways of doing business.
HOW TO OPEN A DOLLAR GENERAL FRANCHISE
There are no information on how to open a Dollar General franchise at the moment. However if you are buying into the Dollar General Store Network, then you need to submit your application on the company’s website and they will give you feedbacks after some few days.
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Before you submit your application, you have to ensure that you have the basic requirements (in terms of finances and the access to a good location) to establish a store.