The amount a No-frills franchise owner can make in a year will vary depending on certain critical factors. No Frills is renowned as one of the lucrative franchises in Canada.
It was founded in 1978. There are over 200 franchise stores located in nine Canadian provinces, with offerings that include bakery, dairy, deli, frozen foods, gasoline (select locations), general grocery, general merchandise, liquor (select locations), meat and poultry, pharmacy, produce, seafood, and snacks.
No Frills stores are quite similar to conventional supermarkets but continue to feature deep discount prices. Although the original No Frills outlets carried only the most basic products, in recent times their stores are beginning to offer a vast array of items and brands that include Loblaw’s own private or ‘control label’ products.
The range of services they offer has expanded with some outlets offering fresh meat and fish counters, some of which have premium offerings. Frozen food sections, excluded from the original stores due to the cost of refrigerations are now standard, while other features remained the same, especially since No Frills customers are expected to pack their groceries and shopping bags.
Over the years, No Frills has shown support to their local communities and the names of local owners are included in the store name to buttress this fact. Note that walking into a No Frills is meant to feel like walking into a local market, with great service and employees working there know who members of the community are.
5 Factors That Influence How Much a No Frills Franchise Owner Can Make
How much a No Frills franchise owner can make in a year will vary depending on certain factors, which include the following;
Location
The location of your No Frills franchise can dictate how much you can take home. It is important to understand what makes a location great and then utilize it effectively. This may include selecting the ideal square footage that will provide you with the space you need for things like a store, the number of shelves needed, parking lot, etc.
Staff
Franchise employees and workers in any other type of industry are paid by their employer. Most often, this is the franchisee, but in some cases, it’s the franchisor. It is important to understand the full extent of your payroll responsibilities as a franchisee, especially when it will influence how much you take home.
Franchise owners generally pay their own employees. If the franchisor offers payroll services, it will be outlined in the franchise disclosure document, also known as the FDD.
Inventory Management
Inventory management is the art of properly planning the purchase, storage, and sales of inventory. This ensures that the correct type and quantity of inventory are available without holding excess inventory and thus not taking up unnecessary cash.
When you purchase a No Frills franchise, the franchisor will advise you on how to control inventory to minimize its costs, meet the customer’s needs, and also ensure proper inventory turnover. Note that your income may also depend on your ability to minimize costs.
Operating Costs
Cities and provinces with a higher cost of living entail that the cost of operating your No Frills franchise will also be higher. The increased costs will warrant higher real estate and rental prices, licensing costs, and wage requirements. It is important to take your operating costs into consideration when choosing a location for your No Frills Franchise.
Note that it can fluctuate from year to year as your franchise grows or as legal requirements change. Although a good number of these costs may pile up quickly, don’t forget that the areas with higher costs of living are also those with more people (and more potential customers) who are willing to pay slightly higher prices than customers in other parts of the country.
Owner’s Business Experience
No formula can explain the level of experience required to turn a profit and run a successful No Frills franchise business. Not that experience remains a very vital factor this franchisor considers when accepting a franchisee.
Most often, your experience in the business and how you handle certain peculiar situations will influence your business success and in turn the profits you can make. Have it in mind that the more knowledgeable and hard-working you are, the better your chances of becoming a successful business owner.
Conclusion
A whole lot of things have changed in No Frills over three decades. Most notably, their first prototype store has birthed over 250 franchise locations across Canada. Although the first stores had just a few hundred items, in this present age No Frills® has thousands to choose from, including fresh produce, meat, and the very popular President’s Choice®, as well as no name® line of products.
Irrespective of all these changes, the No Frills® concept has stayed the same, with the aim of providing great meat and produce, commitment to the community, and trusted low prices.