There are many big and small discount stores operating, and they offer a variety of products at low-cost prices.
You might want to get into this industry via franchising, and Dollar Tree is one of the options that most people know.
Owning a Dollar Tree might be a great idea considering its size and profitability.
This article will cover whether Dollar Tree offers franchising, how you can be a part of their network, and everything surrounding this topic.
About Dollar Tree And Its History
Dollar Tree is a chain of discount variety stores headquartered in Virginia, United States.
The company is part of the Fortune 500 and has over 15,000 stores across 48 states, both in the United States and Canada. Dollar Tree also operates several other brands, such as Family Dollar and Dollar Bills.
Every Dollar Tree store has many different products in a variety of departments, like health, beauty, snacks, décor, party items, and many more.
Despite their enormous network of 15,000 stores and 24 distribution centres, they do not offer franchising. They only offer opportunities for people to be vendors and manage the stores.
Franchise Model Table
| Franchise | Vendor |
| Franchise-Fee | NO |
| Estimated Outlets | 15,000+ |
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How Much Does It Cost to Open a Dollar Tree Franchise?
Dollar Tree doesn’t franchise, so this means that there are no costs associated with it.
They only offer vendor opportunities, which don’t require an investment beforehand. Dollar Tree takes care of almost everything.
Why Doesn’t Dollar Tree Offer Franchising?
There is no specific information about why Dollar Tree doesn’t offer franchising.
However, considering that they offer vendor opportunities to those interested, we can conclude that they want to control the stores on their own. All Dollar Tree stores are controlled from their headquarters.
Dollar Tree’s vendor system handles everything from real estate selection to merchandise support. Vendors basically become the resellers of Dollar Tree merchandise.
That way, Dollar Tree can have people willing to resell their products and have someone on the ground while offering the same quality and service across all their locations.
Profit & Revenue
In the company’s last report, its revenue for 2021 was $25.5 billion. Their net income was $1.3 billion for the same year.
Both of these numbers saw an increase from the last year, showing a healthy sign of improvement for the future.
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What Are Some Alternatives to Dollar Tree?
Dollar Tree might not offer franchising, but there are stores in the same industry offering franchises.
You can consider some of these alternatives if being a vendor with Dollar Tree is not interesting for you.
Your Dollar Store With More
The chain started in 1998 with one single store and grew to over 100 stores in Canada and 23 in the United States by 2003.
The Canadian dollar store grew mostly thanks to its low franchise costs and a wider variety of products than its competitors.
You need between $60,000 to $200,000 to open a Your Dollar Store With More franchise, including the $20,000 franchise fee. Later on, you need to pay a 4% royalty fee from your gross sales.
A Buck or Two
A Buck or Two Stores is a Canadian dollar franchise chain operating since 1988, headquartered in Ontario, Canada.
They have over 45 locations in Canada, and they are a private company offering franchise opportunities.
In their stores, their products include party supplies, school & office supplies, toys, crafts, hardware, and many others.
The average investment is between $250,000 and $300,000, including the $25,000 franchise fee to open a Buck or Two.
The royalty fee stands at 6% and has an initial term of agreement of 5 years, with renewal as a possibility.
Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Save-A-Lot | N/A | N/A | $750,000-$1.5 million |
| Dollar Castle | $30,000 | 4% | $216,550-$526,000 |
| Dollar Tree | NO | NO | NO |
Conclusion
Dollar Tree is one of the biggest dollar stores in the United States, with over 15,000 outlets across 48 states.
This presents a great opportunity for entrepreneurs. However, they don’t offer franchising opportunities, only vendor opportunities.
When you become a vendor, you get everything from Dollar Tree itself. You just need to manage the store and resell their products.
If you are looking for a franchise opportunity, Dollar Castle, A Buck or Two, and Your Dollar Store With More are all alternatives in the same industry that offer franchising.
They are not as big as Dollar Tree, but they offer quality products and good profitability per franchised store.
FAQ
Is Dollar Tree a franchise?
No. Dollar Tree is not a franchise. They only offer vendor opportunities to individuals interested in it.
Can everyone be part of the Dollar Tree network?
To be a part of the Dollar Tree network, you need to be a vendor, and you need to apply for it.
If you get approved, you will be a part of their network and manage a store. They carefully select people that become a part of their network.
Sources
https://en.wikipedia.org/wiki/Dollar_Tree
https://corporate.dollartree.com/vendor-real-estate-partners/real-estate-partners
https://corporate.dollartree.com/vendor-real-estate-partners/merchandise-vendors
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.