How to Compare Dollar Store Franchises

Opening a dollar store franchise takes some research.

Comparing dollar store franchises isn't much different from comparing any franchise you decide to open. It's wise to consult with a lawyer, business consultant or accountant before purchasing a franchise.

Cost

Research the cost of the dollar store franchises that interest you the most. Check the cost of each franchise; some companies have higher initial investments, advertising and royalty payments than others.

History

Find information about each dollar store franchise online.

Contact the dollar store franchises for information, and research them online. Find as much information as you can about each company you consider. Check these companies with consumer and franchise regulators for your state for any serious problems such as franchisee lawsuits or bankruptcies.

Control

Parent companies may control the appearance of your store.

Research how much control the parent company retains. Look for controls such as site-approval, appearance of your store, restrictions on what you can sell and how you can operate your store. Parent companies may also be able to restrict your sale area, preventing you from opening another store elsewhere.

Franchisees

When comparing dollar store franchises, contact franchisees of the stores that interest you. Find out their experiences dealing with the company and whether the company delivers on their promises. Determine whether franchisees believe the franchisor provides enough support and franchisees' experience regarding return on investment.

References

• International Franchise Association: Consumer Guide to Purchasing a Franchise
• Entrepreneur: Finding Your Perfect Franchise, Gwen Moran

Resources

• The Franchise Registry