Goodwill Franchise Cost, Fees & Profit 2024

Goodwill is a well-known chain of supermarkets, but is it also a franchise?

If it were, it would be an excellent opportunity for all entrepreneurs who’d like to open a new supermarket exploiting an already well-known brand name like Goodwill.

By reading this article, you’ll discover if you can become the owner of a Goodwill supermarket and how much it is going to cost you.

So keep on reading to find out anything you need to know about the Goodwill Franchise.

Goodwill Franchise
Goodwill Franchise

About The Goodwill Franchise

The Goodwill franchise is a chain of gastronomic supermarkets. The peculiarity of this supermarket company is that they produce some of the products they sell.

Some grocery products are therefore branded Goodwill, and they are very well appreciated by the customers.

If you become a Goodwill partner, you’ll be able not only to open a Goodwill supermarket but also to sell Goodwill products in your store.


History Of Goodwill Franchise

History Of Goodwill Franchise

The Goodwill company was founded in 1997 in Georgia. The very first store was called Scorpio. 

The company quickly began opening new stores, and today, it counts 8 supermarkets.

They became a franchise company in 2018: since that date, it has been possible for anyone interested to submit a franchise request and become their partner.

Today, the Goodwill company counts 8 supermarkets. Because the number is still low, they are very open to welcoming franchise submissions so that they can spread their business brand in more and more towns and States.


Goodwill Franchise Business Model

As mentioned, Goodwill launched their franchise program in 2018. They are specialized in big supermarkets that focus on groceries and food gastronomy products. 

Business ModelSupermarket franchise
Initial Investment222,000
FranchiseYes
Franchise FeeS13,500
Number of outlets8

How Much Does It Cost To Open A Goodwill Franchise?

Goodwill supermarkets are very large, and the company requires their franchise partner to open a store that is just as large as the ones that are already opened.

For this reason, the initial investment can be extremely high: above $200,000.

This initial investment would include the following:

  • The purchase of a large place to host the supermarket
  • The purchase of the inventory
  • The initial franchise fee is $13,500.

The Goodwill franchise is a big investment, but we’re about to discover that the ROI can be three times higher in only one year.


Requirements

Goodwill doesn’t specify many requirements. However, you should submit your request only if you can afford a huge investment and if you are able to run a large supermarket. Small business or small retail is not what they do.


Goodwill Franchise Revenue & Profit

As per sources, the Goodwill franchise owner makes an estimated monthly revenue of $98,267 or $1,179,204 a year. If we assume a profit margin of 15%, then we can calculate that a Goodwill franchise owner makes estimated annual profits of $467,250 on average. 

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%3115000.00
Rent10.63%(330968.75)
Insurance5.31%(165484.38)
Salaries21.25%(661937.50)
Franchise Royalty Fees5.31%(165484.38)
Utilities2.13%(66193.75)
Cost of Goods Sold (COGS)26.56%(827421.88)
Labor (Variable)13.81%(430259.38)
Total (Expenses)85.00%(2647750.00)
Net Profit15.00%467250.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

Goodwill Company’s Revenue & Profit

Goodwill generates billions of dollars each year. In 2016, the company, in fact, generated $5.7 billion in revenue, making its place in the Forbes top 100 U.S. charities.


Goodwill Franchise Payback Period

With a midpoint investment of $222,000 and an estimated 15% profit, the yearly profit would be $467,250.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Midpoint Investment / Yearly Profit = $222,000 / $467,250 = 0.47 years

Based on these figures, it will take approximately 4-6 months to pay back the initial investment for Goodwill franchise. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Training And Support

Goodwill Training And Support

The Goodwill franchise campaign started only 4 years ago. For this reason, the company is very enthusiastic about welcoming new partners.

It’s true that the investment is big, but in exchange, you’ll get training and support regarding finance, inventory, marketing, and sales.

You’ll also have the possibility of selling Goodwill products. They are more than 1500 Goodwill-branded food products.


Obligations And Restrictions

If you become a franchise partner of Goodwill, you can open a Goodwill supermarket, exploit the Goodwill brand name for marketing purposes, and you can sell and market the Goodwill-branded products.

If you are not a partner, not only you canìt open a Goodwill store, but you can’t sell their branded products either.


Term Of Agreement And Renewal

Terms and renewal are discussed with every franchise partner, and they are not known by default.


Financial Assistance

Goodwill doesn’t provide financial assistance. For those looking to open a franchise in the retail industry, possibilities include Dollar Tree Franchise, Valvoline Instant Oil Change, Costco Franchise, Winzer Franchise, and Daiso Franchise.


Comparison Franchise: Goodwill VS WholeFood

CompanyGoodwillWhole Foods
Founded19971980
Business ModelFood retail supermarketshealthy food retailer and eCommerce
FranchiseyesNO
Membership Fee$13,500None
Number of Outlets8500

Conclusion

Opening a Goodwill supermarket and exploiting the Goodwill brand name for your business is possible, but it requires a big initial investment.

If you can afford it, however, it is worth it because the expected revenue in one year is about $600,000.


Goodwill Franchise: FAQ

Is Goodwill a franchise or a chain?

Goodwill has been a franchise since 2018. It is possible to open a Goodwill supermarket as long as you obtain your franchise license.

Is the Goodwill Franchise a good investment?

Investing in a new Goodwill supermarket can seem like a huge risk: the initial investment is high, and the company is rather young, especially when compared to other competitors like Whole Foods which is infamous for being expensive.

However, the estimated ROI is high, and the company is willing to provide great support because they are pushing their growth through franchise deals.

How many Goodwill stores are there?

There are 8 Goodwill supermarkets in Georgia.

Is the Goodwill Franchise worth it?

In the long term, the Goodwill Franchise is totally worth it.

But make sure to make this big investment only if you can afford it because there is still a low level of risk like it happens for all kinds of investments.

Reference: Goodwill Franchise – Cherry Franchise

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