Dollar General Franchise Startup Cost, Revenue and Profit Margin
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
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 offers 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 runs 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 franchise 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 franchise 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 franchise businesses in the same category.
FINANCING YOUR FRANCHISE BUSINESS
The Dollar General franchise is a lucrative business if you have developed the interest to run it. If you have got a very good location with less competition, you can break-even in a very short period. But in the case whereby you don’t have many finances to kick start your business, you can seek finances from either your local bank, money lenders as well as Small US Business Administrations.