Retail stores that sell tools and equipment are solid businesses with good potential to make money for the owners of the stores.
Harbor Freight is one of the oldest and most popular tool and equipment retailers in the United States. It shows great potential for entrepreneurs to make good money.
That’s why you might think of owning a Harbor Freight franchise. This article will go over Harbor Freight, whether they offer franchising and potential alternatives to Harbor Freight for those interested.
About Harbor Freight And Its History
Harbor Freight Tools, also known as Harbor Freight, is a tool and equipment retailer that is privately owned with headquarters in California.
They operate physical retail chain stores and an e-commerce business. They were founded in 1977 and now has more than 1,400 locations across 48 states.
Harbor Freight doesn’t currently offer franchises to anyone, and they never did. Since 1980 when they opened their first store, they have always opened their own stores.
As of 2023, they continue to do the same and open new stores and manage those stores themselves.
Franchise Model Table
| Franchise | NO |
| Franchise-Fee | NO |
| Estimated Outlets | 1,451 |
How Much Does It Cost to Open a Harbor Freight Franchise?
Harbor Freight is not a franchise; that’s why there are no costs related to opening a Harbor Freight franchise.
All stores of Harbor Freight are owned by them, and they open their own stores using their own funds.
Why Doesn’t Harbor Freight Offer Franchising?
There is no formal information about the reason why Harbor Freights doesn’t offer franchising.
The company never made any public announcement about this, and they also never mentioned their plans for the future.
They look for real estate partners to help them open their stores in different locations but not franchisees.
In general, the reason why companies don’t offer franchising is because they generally have enough funds to open their own stores or they can keep up with the quality themselves.
Harbor Freight Profit & Revenue
| Company | 2022 Revenue | Estimated Profit (10%) | Estimated Profit (20%) |
|---|---|---|---|
| Harbor Freight | $6.8 billion | $680 million | $1.36 billion |
According to Forbes, Harbor Freight’s 2022 revenue was $6.8 billion. No information is available on how much profit Harbor Freights made from this $6.8 billion.
However, the industry’s average profit margin is between 10% and 20%, so we can calculate a profit with this margin.
Since Harbor Freight does not franchise, there is no information available about the revenue or profit numbers per store.
What Are Some Alternatives to Harbor Freight?
Harbor Freight might not offer franchising, but there are many companies operating in the same industry.
Some of these companies offer franchising and can be an excellent alternative to Harbor Freight if you want to own a franchise in this industry. Here are some of those alternatives.
Batteries Plus Bulbs
Batteries Plus is an American retail chain focusing on offering batteries that fit every size and need.
They also recycle, stock, and customize out-of-production batteries for antique applications and cars. They have over 600 franchised outlets, and they have been in operation since 1988.
The average initial investment is between $197,400 and $465,600, which includes the $15,000 or $49,500 franchise fee. The royalty fee to pay the brand is 5% of the total revenue from the store.
NAPA Auto Parts
With over 100 years of experience and 20,000 locations, the brand is famous for repairing, supplying, and distributing various automotive parts and equipment.
The company is also experienced in getting franchisees to its name since they have been offering franchising for years.
The good thing about NAPA franchises is that they don’t have any royalty fees or franchise fees.
The only investment you need to make is to open the store. The average cost for this is between $75,000 and $850,000.
Harbor Freights Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| True Value | $9,500 | N/A | $44,550-$987,050 |
| Ace Hardware | $5,000 | N/A | $579,350-$1.9 million |
| Harbor Freights | NO | NO | NO |
Conclusion
Harbor Freight is a famous brand in the United States, offering various tools and equipment. Most people are wondering if they can be a part of their network, but you can’t.
That’s because they don’t offer franchising, and all their stores are company owned.
However, you can go for other alternatives in the same industry, like True Value or Batteries Plus.
There are many companies in the same industry offering franchising. You can be a part of their network and make good money as an entrepreneur.
FAQ
Is Harbor Freight a franchise?
No. Harbor Freight is not a franchise, they open all their stores themselves, and they manage it.
Can Harbor Freight offer franchising in the future?
The company didn’t make any comments about its future plans regarding franchising.
Even though it is a possibility technically, we don’t know if they will ever offer franchising.
What is the franchise fee for Harbor Freight?
Since Harbor Freight is not a franchise and you can’t open a franchise with them, there is also no franchise fee.
Sources
https://en.wikipedia.org/wiki/Harbor_Freight_Tools
https://en.wikipedia.org/wiki/Batteries_Plus
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.