Franchises are a great way to get into the entrepreneurship world and gain some experience without putting yourself in a very risky position.
Since you essentially buy the name, you already have a brand, target audience, and other things ready.
One of the most popular franchise options that people go for is QuikTrip, a chain of convenience stores in the United States.
They are not extremely high-end in the franchise world but still have the extreme potential to give a franchise outlet owner a good income.
If you are looking to learn more about QuikTrip franchising, how it works, its fees, the franchising model, and everything else, you are in the right place.
This article will tell you everything about QuikTrip and its franchising business.
About QuikTrip
| Industry | Retail and Wholesale |
|---|---|
| Founded | 1958 |
| Headquarters | Tulsa, Oklahoma |
| Country | United States |
| President and CEO | Chet Cadieux |
| Employees | 24,000 |
QuikTrip Corporation, commonly known as QuikTrip, is an American convenience store chain based in Tusla, Oklahoma.
They are a privately held company and primarily operates in the Midwest, South, and Southeast parts of the United States and also in Arizona.
They were chosen on the 100 Best Companies to Work For list by Forbes in the past, and they have about 24,000 employees across their stores.
QuikTrip has over 900 stores in 14 states with a valuation of about $11 billion.
They are one of the largest privately held companies in the United States as per Forbes’ largest privately held companies.
Also Check Out Circle K Franchise
QuikTrip History
QuikTrip first started as an inspiration from 7-Eleven in 1958 by two entrepreneurs, Chester Cadieux, and Burt Holmes.
It first started as a small grocery store in Oklahoma Tulsa and achieved its first profit two years after opening its first store.
They first expanded outside of Oklahoma in 1968. In 1971, they started to offer gasoline as part of their services, which turned QuikTrip into the place we know today.
They have locations across the United States, but they are primarily focused on Midwest and certain South part locations in the United States.
Fortune Magazines list QuikTrip Franchises as one of the top-performing franchises in the United States because you can make quite a lot of profit with a small initial investment compared to other franchise businesses.
Is QuikTrip A Franchise?
Yes, QuikTrip operates as a franchise model, allowing individuals to open their own QuikTrip outlets by meeting specific financial requirements
Franchise Model Table
| Initial Investment | $20,000-$30,000 |
| Franchise | YES |
| Franchise-Fee | $25,000 |
| Royalty-Fee | 5% |
| Liquidity | $25,000 |
| Estimated Outlets | 800+ |
How Much Does It Cost To Open A QuikTrip Franchise?
To open a QuikTrip franchise, you need to have $25,000 in liquid cash for unexpected costs in the first year and a non-refundable $25,000 franchise fee.
The estimated cost of opening a franchise outlet ranges between $20,000 to $30,000, depending on location and outlet size.
Additionally, a 5% royalty fee from your monthly gross revenue is payable to the brand once the franchise is operational.
QuikTrip Revenue, Profit & Owner Salary
| Quiktrip (2022) | Amount |
|---|---|
| Total Revenue | $16.4B |
| Estimated Units (2022) | 900 |
| Annual Revenue per Store | $18.22 million |
| Monthly Revenue per Store | $1.52 million |
| Average Net Profit Margin (5%) | 5% |
| Annual Final Profit per Store | $911,000 |
| Monthly Final Profit per Store | $75,917 |
QuikTrip Franchise Revenue & Profit
The owner’s salary from the revenue and profit of a QuikTrip franchise cannot be directly determined as it depends on individual agreements.
The estimated annual final profit per store is $911,000, and the monthly final profit per store is $75,917.
However, the specific portion allocated for the owner’s salary would vary based on their agreement with the business.
QuikTrip Requirements
The requirements to open up a QuikTrip franchise is mostly financial requirement, as QuikTrip doesn’t expect the new franchisees to have experience in the field.
If you have $25,000 to pay the initial franchise fee and can show $25,000 in liquid cash, you mostly complete the franchise requirements for QuikTrip.
QuikTrip Training and Support
QuikTrip offers the new franchisees and its staff their own training and support to help them get started with the business.
The owner of the franchise and the staff that the owner chooses to have the option to attend this training.
The training by QuikTrip is divided into two sessions, and you must attend both during the training.
The training and the support take place in the headquarters of QuikTrip, in Oklahoma and on-site at any location that QuikTrip approves.
This means that you will get to have two different sessions in two different locations.
In the training and support sessions, you will learn about how QuikTrip works, how the staff should behave, and any other detail to ensure quality assurance across every franchise outlet.
QuikTrip Franchise Terms Of Agreement & Renewal
When you start a franchise with QuikTrip, the terms of the agreement are mostly the same as other franchises.
You need to follow the rules of the brand, take care of the location, and provide the same service as other QuikTrip locations.
The term of operation of the QuikTrip franchise agreement is for 10 years for default. The franchisee has the option to renew the franchise agreement after the initial 10 years.
However, QuikTrip will expect the franchisee to meet the company’s terms and conditions for you to be eligible for renewal.
QuikTrip Obligations and Restrictions
QuikTrip doesn’t have as many obligations and restrictions as most franchises. You are obligated to follow the rules of the company in its terms of service.
The location must be approved by QuikTrip, and get the necessary training. You also need to pay the brand a 5% royalty fee as part of the obligations.
You are not allowed to change the location without any prior approval from the QuikTrip corporation. You must follow certain rules of service and quality in the outlet.
QuikTrip Financial Assistance
QuikTrip doesn’t have any financial assistance to their franchisee, whether directly or indirectly. If you want to own a QuikTrip franchise outlet, you will have to find financial assistance yourself.
There are lending firms ready to supplement you with the funds you need to start your franchise. However, QuikTrip doesn’t take over this assistance.
QuikTrip Comparison
| Company | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| RaceTrac | $25,000 | 3.5% | $1-1.4 million |
| 7-Eleven | $25,000 | Varies (1% ad fee) | $37,00-$1 million |
| Circle K | $25,000 | 2.5%-5.5% | $171,000-$1.9 million |
| QuikTrip | $25,000 | 5% | $20,000-$30,000 |
Conclusion
In conclusion, QuikTrip is one of the most profitable franchise businesses in the convenience store industry.
If you want to own a QuikTrip franchise, you need about $25,000 ready to pay the non-refundable franchise fee and have $25,000 in liquid cash.
On top of these requirements, you can expect to spend up to $30,000 as the initial investment to get the store going.
QuikTrip is based in Oklahoma but has over 900 stores in 14 states. They started their operations in 1958 and have been offering gasoline in addition to their convenience items since 1971.
FAQ
Do you have to get approved by QuikTrip to open the franchise?
Yes, QuikTrip needs to approve you and the location you choose for you to be able to sign the franchise agreement and open the outlet.
Is QuikTrip worth the effort and the costs?
QuikTrip’s franchise costs are very low compared to similar brands and provide a good return. So QuikTrip is mostly worth the effort and the costs you pay for it.
Who is the owner of QuikTrip and the current CEO?
Chet Cadieux, a native of Tulsa, is the current CEO of QuikTrip. The company was co-founded by his father, Chester Cadieux.
Sources
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.