There aren’t many who are unfamiliar with the Walmart name. This is why it’s no surprise that people often ask how much it costs to open a Walmart franchise.
Since its flagship store opened in 1962, Walmart has grown to be the world’s largest retailer, with an international footprint.
Over the years, their extensive range of products has expanded to include their own quality brands. And the Walmart name is now synonymous with providing value for money.
- 1 Is Walmart A Franchise?
- 2 What Does it Cost to Open a Franchise Inside Walmart?
- 3 The Pros of Opening a Franchise in Walmart
- 4 How to Lease a Space Inside Walmart
- 5 Conclusion
Is Walmart A Franchise?
Walmart is not a franchise, this means that you cannot purchase or own a Walmart franchise. This is because Walmart is a corporation that trades publicly. It’s owned by individual and corporate shareholders, as well as investment firms.
That said, you could still benefit from this legendary brand’s unmatched revenue by becoming an investor. In fact, it’s relatively easy and inexpensive to buy Walmart shares.
But if you have your heart set on owning and running your very own store, there is an alternative. You can set up your own franchise business inside a prominent Walmart store.
Several brands have an existing relationship with Walmart. But that shouldn’t prevent you from applying to open a different kind of franchise inside a Walmart store.
Bear in mind, however, that purchasing and opening any franchise is not cheap. And this is especially true of a franchise supported by this beloved retailer.
What Does it Cost to Open a Franchise Inside Walmart?
When opening a franchise inside a Walmart store, you’ll be paying for an established brand and a prime location. Therefore, the set-up costs will require a reasonable amount of capital. So, you must understand the costs involved.
Costs to Consider
Franchise opportunities exist in a variety of niches. And you can expect to spend anywhere from $10,000 to $5 million in start-up costs. However, the cost is determined by the business’s size, model, and reputation.
Walmart also charges third-party franchise owners an entrance fee to set up inside their store. This fee is usually in the region of $10,000.
Apart from these initial start-up costs, you’d need to pay monthly royalty fees to the franchisor. This is usually a set percentage of your sales and often also covers your advertising costs.
Don’t forget that you’ll also be liable to pay Walmart a rental fee to lease the space for your business. This is usually charged monthly in arrears.
Types of Franchises
Retailers typically found in Walmart stores are fast-food, salon, spa, wellness, tech repair, entertainment, and packaging franchises. And the cost to open these types of stores differs significantly from business to business.
For instance, say you wanted to open a Seva Beauty spa franchise in a Walmart store. In this case, the total set-up costs would be anywhere from $107,500 to $276,000. This includes your initial franchise fee of $39,000.
On the other hand, you could opt for a franchise in the fast-food space, such as Dunkin’ Donuts. Here you’re looking at a total investment of anywhere from $121,400 to $1,787,700.
Your franchise fee, in this instance, would cost you between $10,000 and $90,000. The exact fee would depend on the size and type of store you wanted to set up.
The Pros of Opening a Franchise in Walmart
Before starting your entrepreneurial journey, it’s crucial to understand the advantages of setting up a franchise inside Walmart. The following are just some of the benefits you can look forward to.
Walmart wants its partner stores to thrive because it further elevates its brand.
As such, Walmart’s team is happy to advise you on the most beneficial location and strategy for your franchise. And their expert guidance would be invaluable to any new business owner.
Walmart is a globally recognized brand and household name. They have a reputation that spans decades and a loyal customer base.
Therefore, your franchise would benefit from the trust they’ve already built with their customers by association.
Walmart regulates the types of tenants they bring into their space to ensure an appropriate range of products and services. This eliminates the risk of duplicating a specific service or product offering.
For instance, Walmart would avoid placing two different coffee vendors in the same store. And, as such, the risk of competition within your location is heavily reduced.
With its unmatched reputation, Walmart is already a top-rated shopping destination. And the retail giant draws thousands of shoppers to its multiple locations daily.
Your franchise will, therefore, benefit from this large-scale foot traffic. Walmart’s customers will become your customers.
How to Lease a Space Inside Walmart
Finding a space inside a Walmart store for your franchise is relatively straightforward. But, before making any commitments, you should read and understand Walmart’s Landlord and Tenant Handbook.
When you’ve found a suitable location, you’ll need to fill in an application form online. Here you’ll be asked to detail your business information and state the nature of your proposed franchise.
Note that if Walmart has an existing relationship with your chosen franchisor, the application process may be a little easier.
Piggybacking off the enormous reach and reputation of the Walmart brand is a great way to start a business. And opening your own franchise store inside a Walmart store is just the answer.
Granted, your initial financial outlay will be sizable. But the advantages of working with this titan of a retailer more than justify the costs.
But make sure you understand the commitment involved in purchasing a franchise. When you’re fully aware of what to expect, you’ll be well on your way to being an accomplished business owner.