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.
Financial Investment Required 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.
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.
Frequently Asked Questions
- Who Is Owner Of Dollar General?
The company began in 1939 as a family-owned business called J.L. Turner and Son in Scottsville, Kentucky, owned by James Luther Turner and Cal Turner.
- Can You Buy A Dollar General Franchise?
Yes, I can buy a Dollar General Franchise if it is made available for purchase to the general public.
- What Is The Pricing Of A Dollar General Store?
- Minimum Cash Required – $30,000
- Net Worth Required – $50,000
- Total Investment – $76,900 – $366,900
- What Does The Dollar General Franchise Cost Cover?
Initial startup cost is about $25,000 and it can range up to $350,000. This amount will definitely cover everything that you will need to start a new dollar general store.
- What Brands Do Dollar General Stores Cater?
Dollar General Stores cater for brands such as Clover Valley®, Good & Smart®, true living®, DG Home®, Gentle Steps®, Studio Selection™, DG Health®, DG Office®, Comfort Bay®, Bobbie Brooks®, Smart and Simple® and more.
- How Can You Buy 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.
- How Much Does Dollar General Franchise Cost?
Initial startup cost is about $25,000 and it can range up to $350,000.
- Who Is The CEO Of Dollar General Stores?
Todd Vasos is the current Chief Executive Officer of Dollar General Stores.
- Are Dollar General Stores Independently Owned?
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.
- How Much Do Dollar General Franchise Owners Make?
The average Dollar General Product Owner earns an estimated $139,514 annually, which includes an estimated base salary of $120,089 with a $19,425 bonus. Dollar General’s Product Owner compensation is $23,540 more than the US average for a Product Owner.
- How Much Does A Dollar Store Owner Make A Year?
Dollar stores may make up to $.80 profit on items they sell, though the average is about $.35 for each item. This means a dollar store would have to sell 200,000 items a year to make around $70,000 in profit.
- Who Is The Target Market Of A Dollar Store?
The Company’s Dollar Tree and Family Dollar-branded stores are targeted generally at lower income consumers, typically located so as to serve local communities.
- What Are The Ongoing Expenses For A Dollar Store?
The ongoing expenses for a Dollar Store are location (rent, permits, etc.), as well as the cost of merchandise, advertising, and employee salaries.
- What Is The Growth Potential Of A Dollar Store?
The growth potential of a Dollar Store is positive. As a matter of fact, not only do dollar stores thrive in a strong economy, history shows they also maintain stable growth in times of recession. They are also backed by investment-grade corporations more likely to ride out tough economic times, which makes dollar stores a lower-risk, stable commercial real estate investment.
- Do Dollar Stores Make A Lot Of Money?
For every dollar spent by a customer at Dollar Tree, the company makes a profit of $0.35. Walmart, for example, makes only $0.24 per dollar. This is because the items at dollar stores cost less to manufacture, and the company isn’t losing any money by keeping them on “sale” for just a dollar.
- Does China Own Dollar General Stores?
The dollar store industry is dominated by two companies: Dollar General and Dollar Tree, which also owns Family Dollar. China is the source of a substantial majority of the company’s imports though.
- Are Dollar General And Dollar Tree Owned By The Same Company?
Dollar Tree is an actual dollar store, but Dollar General is not.
- How Do You Create Links To Dollargeneral.Com?
Just log in to PepperJamNetwork.com and create your links.
- What Are The Items You Can Find In A Dollar General Store?
Clothing, cleaning supplies, home decor, health & beauty aids, pet supplies, toys, seasonal items, and grocery et al.
- Why Is The Dollar Store So Cheap?
Dollar stores are able to keep their prices so low, in part, because they sell so many private-label products. Private-label products are made exclusively for these stores, so they can be bought and sold for less.
- How Much Does Dollar General Pay Their Employees?
The national average salary for an Owner Operator is $72,092 in United States, which is 25% higher than the salary offered by Dollar Tree for this job.
- What Company Owns Dollar General?
An investment group consisting of affiliates of Kohlberg Kravis Roberts (KKR), GS Capital Partners (an affiliate of Goldman Sachs), Citigroup Private Equity and other co-investors completed an acquisition of Dollar General Corporation for $6.9 billion.
- How Much Does It Cost To Open A Dollar General Franchise?
Initial startup cost is about $25,000 and it can range up to $350,000. This amount will definitely cover everything that you will need to start a new dollar general store.
- How Much Profit Can A Dollar Store Make?
For every dollar spent by a customer at Dollar Tree, the company makes a profit of $0.35.
- Where Do Dollar Stores Get Their Merchandise?
Once seen as dumping grounds for liquidated and off-brand merchandise, today’s dollar stores often buy their inventory from major manufacturers such as Procter & Gamble, Hanes, Unilever, Coca-Cola, Energizer, Crayola and General Mills.
- What Days Does Dollar Tree Restock?
Dollar Tree stores typically receive new shipments once a week and restock store shelves daily. Delivery days and frequency vary by store. To find out if a particular item is in stock or will be restocked soon, contact your local Dollar Tree.
- How Much Does It Cost To Build A Dollar General Store?
Dollar General store costs about $250,000 to build, and pays for itself within 1.7 years, according to company reports. In 2016, Dollar General opened 900 new stores on top of the 730 units opened in 2015.
- How Much Does A Dollar General Owner Make?
The average Dollar General Product Owner earns an estimated $139,514 annually, which includes an estimated base salary of $120,089 with a $19,425 bonus.
- What Should You Not Buy At A Dollar Store?
- Pet Food
- Makeup
- Power Strips
- Batteries
- Sunscreen
- Baby Products
- Vitamins and Herbal Supplements
- Toys
- Hand Sanitizer
- Knives
30. What Is Safe To Buy At Dollar Tree?
- Greeting Cards
- Gift Bags, Gift Wrap and Bows
- Paperware, Plasticware and Tablecloths
- Party Streamers
- Blowouts, Party Hats, Banners etc.
- Helium Balloons
- Pregnancy Tests
- Body Wash
- How Much Do Dollar Tree Owners Make?
Owner Operator salaries at Dollar Tree can range from $55,002-$59,793.
- Is Owning A Dollar Store A Good Investment?
Sure, it is a good investment owning a Dollar Store. This is so because the store thrives in a strong economy, history shows they also maintain stable growth in times of recession. They are also backed by investment-grade corporations more likely to ride out tough economic times, which makes dollar stores a lower-risk, stable commercial real estate investment.
- Are Family Dollar And Dollar General The Same?
All Dollar Tree and Family Dollar stores are operated from their corporate headquarters in Virginia. Dollar General doesn’t franchise either, but will let you sell Dollar General products online as an “affiliate” for a 5% commission.
- How Much Does Dollar Tree Franchise Cost?
To buy an opportunity with Dollar Store Services, you’ll need to have at least $40,000 in liquid capital. Owners can expect to make a total investment of at least $76,900. They also offer financing via 3rd party.
- Why Do Dollar Tree Sell Their Products So Cheap?
Sometimes, products hit the dollar stores because of damage or lack of freshness. But they are often just offered cheaper because they operate on slimmer margins than grocery stores. Many items were surplus or over-stock items from a company. Dollar stores will often buy and sell anything that’s cheap.
- Can You Buy Wholesale From Dollar Tree?
To purchase Dollar Tree items in bulk, you can shop online at their store. Simply enter a search term in the search box at the top right-hand side of the page to get started. Or, you can call their Customer Order Support Center at 1-877-530-TREE (8733) to place an order.
- Can You Resell Dollar Tree Items?
Dollar Tree, Dollar General, and Family Dollar all carry items that you can resell for profit.
- How Do I Start Dollar Store Online?
Step 1: Determine whether or not you’ll be carrying actual inventory or drop shipping.
Step 2: Negotiate with your suppliers for the best price possible.
Step 3: Take shipping costs into consideration if you will be warehousing the product. Try to get free shipping from your suppliers, or discounts on shipping for prompt payment.
Step 4: Purchase a domain name, preferably your company name, and register it. Select a web hosting company and use their tools to create a website.
Step 5: Create an online catalog of your products. Include product details like size and intended use, pricing and photographs of each item.
Step 6: Place your contact information, including customer service telephone numbers and email addresses prominently on each page.
Step 7: Display a shipping and returns policy on your order page. Explain how frequently orders are shipped and what shipping methods you use.
Step 8: Use search engine optimization tools to drive customers to your website.