Dollar Tree stores are very famous in the United States because you can find anything in them for as little as 1 dollar. If you enter one of those stores, you’ll see that they are always very crowded.
If you are thinking of opening a new business, therefore, you know that opening a Dollar Tree Franchise business would become very profitable very quickly.
After all, the brand is already well-known: you only need to pick the right spot and provide a Dollar Tree retail where there wasn’t.
But can you do that? Can you open a Dollar Tree store? How much does it cost? In this article, we’re answering all these questions.
About Dollar Tree Franchise
Dollar Tree is a chain of low-end retailers. Each store provides customers with any kind of products, from health and beauty products to food and snacks, decor, toys, stationery, and more…
Many – but not all of them – Dollar Tree stores also sell fresh or frozen food like eggs, milk, ice cream, frozen pizza, and more.
Dollar Tree stores are the place where people go to find great deals, find that particular item they can’t find anywhere else, or just do some cheap shopping.
In other words, there are always a lot of people attending these stores, and that’s why it can be a great opportunity for entrepreneurs.
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History Of Dollar Tree Franchise
The Dollar Tree’s history goes back almost 70 years, when Mister K. R. Perry, in 1953, opened a variety store in Virginia.
In 1970, with a couple of associates, Mister Perry started growing his business: under the name of K&K Toys, he opened 130 stores on the East Coast.
His son, Doug Perry, and his associates started a new chain of stores, and this was called Only $1,00. There were five, Only $1,00 in the United States.
In 1989, the first Dollar Tree store appeared in South Carolina. The plan was already to open a chain of stores: 100 stores was the goal.
In 1993, Only $1,00 stores changed their name to Dollar Tree stores, and from that on, new stores have been opened each year.
In 2010, when the corporation could already count 4,000 stores in the US, it also acquired 86 Canadian stores.
Today, the Dollar Tree corporation runs more than 200 stores in Canada and more than 15,000 in the United States.
Dollar Tree Franchise Business Model
Dollar Tree Franchise is a low-end retailer. They are a franchise, so anyone can contact Dollar Tree and open a store in their area.
This is what makes it possible for the corporation to run so many stores across the United States.
Dollar Tree Franchise Model
|Business Model||Low-end retail market chain|
|Initial Investment||Minimum: $50,000|
|Franchise Fee||Between 20,000 and 30,000 USD|
|Number of outlets||15,288 in the US + 227 in Canada|
|Current Finance||20.696 Billion USD|
Training & Support From Dollar Tree Franchise
The Dollar Tree corporation provides great support for entrepreneurs who want to invest in the business. In particular, they provide:
- Funding specialists who provide suggestions about finance and funding.
- Property Support: where you open your Dollar Tree store is key, and the team can help pick the right spot. They also have a list of pre-approved places that you can choose from.
- Dollar Tree stores have to have the same look. When you decide to get into business with them, you receive tons of directions about the design of your store.
- The Dollar Tree Franchise team also provides training about how to use the POS systems, management, marketing, accounting, and in-store operations.
Term & Renewal
After the initial costs you need to sustain, there are additional costs that you need to pay if you want to keep your Dollar Tree store open.
One of the most important is the Royalty Fee. It is a commission you need to pay to be allowed to use the Dollar Tree brand name on your store.
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Comparison Franchise: Dollar Tree VS Papa Murphy’s
|Company||Dollar Tree||Papa Murphy’s|
|Number of Outlets||15,288 in the US + 227 in Canada||1300|
|Franchise Fee||$20,000 to $30,000||$25,000|
|Finance||20.696 Billion USD||$125,000|
Dollar Tree Franchise: FAQ
Is Dollar Tree a Franchise?
Yes, it is; dollar Tree is a franchise in all respects.
How much does it cost to open a Dollar Tree franchise?
The initial minimum cost is $50,000. But the average initial investment is esteemed at $65,000.
What is the Dollar Tree Franchise known for?
Dollar Tree Franchise is known as a low-end retailer where you kind find many items for as little as $1,00.
How many Dollar Tree outlets are currently there?
Dollar Tree franchise counts more than 15,000 shops in the United States and 227 in Canada.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.