How Trader Joe's is run
Asked whether it offers franchising, Trader Joe's answers no: it is a privately held company. (Trader Joe's general FAQ)
It is owned by families that also own part of Aldi Nord. It has no business or ownership tie to Aldi Süd, which runs Aldi in the US. (Trader Joe's general FAQ)
Franchises like Trader Joe's
If you want to own a grocery business, these franchise brands sell the closest thing to Trader Joe's, largest first.
| Brand | Cost to open | Fee | Royalty | Locations | Sales a location |
|---|---|---|---|---|---|
| 7-ElevenFee $0–$800K · Royalty Share of gross profit | $165K–$1.62M | $0–$800K | Share of gross profit | 8,303−502 in 3 yrs | – |
| Circle KFee $25K · Royalty 3.5–6% | $1.47M–$2.87M | $25K | 3.5–6% | 6,071+143 in 3 yrs | – |
| Family FareFee $10K · Royalty 56% of gross profit | $30K–$1.17M | $10K | 56% of gross profit | 102+9 in 3 yrs | – |
| Farm StoresFee $25K · Royalty 6% + minimum · Sales $824K a location | $145K–$249K | $25K | 6% + minimum | 44+4 in 3 yrs | $824K |
| The New York Butcher ShoppeFee $40K · Royalty 4% | $464K–$595K | $40K | 4% | 42+18 in 3 yrs | – |
| Apna BazarFee $100K · Royalty 2.5% + minimum | $1.5M–$3.14M | $100K | 2.5% + minimum | 17+2 in 3 yrs | – |
Locations are US locations, franchised and company-owned, at the end of the latest year filed. Sales are yearly, before costs, where the brand publishes them.
7-Eleven is the largest, with 8,303 US locations, and Family Fare costs least to open, from $30,300. Circle K added the most locations, +143 over 3 years. Of the brands that publish sales, Farm Stores reports the most per location, $824K a year. The typical retail franchise starts at $198K to open; see where the money goes.
Sources
Questions
Which of these grocery franchises loses the fewest owners?
Family Fare. None of its franchised locations closed, were terminated or weren't renewed over the years its latest filing covers, against 13.2% a year at Farm Stores. Buy-backs by the franchisor and sales to new owners don't count as exits. Failure rates by brand